Atlassian (NASDAQ:TEAM) Issues Earnings Results

Atlassian (NASDAQ:TEAM) released its earnings results on Thursday. The technology company reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.12 by $0.10, FiscalAI reports. Atlassian had a negative net margin of 3.38% and a negative return on equity of 7.11%. The firm’s revenue was up 23.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.96 earnings per share.

Here are the key takeaways from Atlassian’s conference call:

• Atlassian reported major financial milestones — surpassed $6B ARR, delivered its first-ever $1B cloud revenue quarter (+26% YoY), grew RPO 44% YoY to $3.8B, and nearly doubled year-over-year the number of deals >$1M ACV.
• AI is accelerating engagement and expansion — Rovo passed 5M monthly active users, customers using AI code generation show ~5% higher Jira task creation/MAU/seat expansion, and the Teamwork Collection exceeded 1M seats in under nine months.
• Management reiterated a seat-based pricing philosophy (with hybrid consumption options), saying they can manage AI costs and are seeing gross‑margin improvements, but pricing/consumption dynamics remain an area of market scrutiny.
• Atlassian reaffirmed its midterm targets (20%+ revenue CAGR and 25%+ non‑GAAP operating margin by FY27) but warned Data Center revenue will be “down meaningfully” next year, posing a near-term headwind to total revenue.
• Service Collection (JSM and related offerings) showed strong momentum — >65,000 customers, enterprise growth >60% YoY, two-thirds of customers using it for non‑IT use cases, and rising adoption of asset management and agentic workflows.

Atlassian Price Performance

NASDAQ TEAM traded down $6.63 on Thursday, hitting $98.41. The stock had a trading volume of 8,137,469 shares, compared to its average volume of 5,157,384. The firm has a 50-day moving average of $145.60 and a 200-day moving average of $159.15. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.26 and a current ratio of 1.26. Atlassian has a 52-week low of $97.93 and a 52-week high of $326.00. The company has a market capitalization of $25.89 billion, a price-to-earnings ratio of -138.60, a price-to-earnings-growth ratio of 16.26 and a beta of 0.88.

Trending Headlines about Atlassian

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Company raised near‑term and full‑year revenue guidance (Q3 revenue guided ~ $1.7B vs. consensus ~$1.6B; FY26 revenue guided ~ $6.4B vs. consensus ~$6.3B), signaling resilient enterprise demand and AI-driven spend. Atlassian raises annual revenue forecast
• Positive Sentiment: Q2 results beat expectations — EPS $1.22 vs. consensus $1.12 — showing improved profitability per share even as margins remain under pressure. Atlassian (TEAM) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Atlassian is promoting AI integration via high‑profile partnerships (Williams F1 / Anthropic Claude), which supports the company’s enterprise AI story and potential product tie‑ins. Atlassian Uses Williams F1 AI Deal
• Neutral Sentiment: Marketing and brand visibility from the Williams F1 sponsorship (new livery, ads) raise the company’s profile but are unlikely to move fundamentals by themselves. Atlassian Williams F1 Team reveals bold new racing livery for 2026
• Negative Sentiment: Repeated insider selling from CEO Michael Cannon‑Brookes and co‑founder/director Scott Farquhar (multiple ~7,665‑share blocks disclosed) is creating investor concern about insider conviction and is adding near‑term selling pressure. SEC filing — CEO sale SEC filing — Director sale
• Negative Sentiment: Analysts trimmed price targets this week (e.g., Cantor Fitzgerald to $146; BMO to $135), which pressures sentiment despite some firms keeping constructive ratings. Cantor Fitzgerald price target BMO price target note
• Negative Sentiment: Broader software/AI sector volatility and recent headlines about disruptive AI offerings have made investors skittish, amplifying downside when company‑specific negatives occur. Software sector volatility from AI fears

Analyst Ratings Changes

Several brokerages have issued reports on TEAM. Piper Sandler restated an “overweight” rating on shares of Atlassian in a research note on Tuesday, January 13th. Truist Financial set a $210.00 price objective on shares of Atlassian in a report on Friday, October 31st. TD Cowen cut their target price on shares of Atlassian from $205.00 to $175.00 and set a “hold” rating for the company in a research report on Tuesday, January 20th. Canaccord Genuity Group restated a “buy” rating and set a $230.00 price target on shares of Atlassian in a research note on Wednesday, October 22nd. Finally, BTIG Research reaffirmed a “buy” rating and issued a $220.00 price objective on shares of Atlassian in a report on Tuesday, January 13th. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $221.44.

Insider Activity

In related news, Director Scott Farquhar sold 7,665 shares of the stock in a transaction on Thursday, November 13th. The stock was sold at an average price of $153.77, for a total value of $1,178,647.05. Following the sale, the director owned 237,615 shares in the company, valued at approximately $36,538,058.55. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Michael Cannon-Brookes sold 7,665 shares of Atlassian stock in a transaction on Thursday, November 13th. The shares were sold at an average price of $153.77, for a total value of $1,178,647.05. Following the sale, the chief executive officer directly owned 237,615 shares of the company’s stock, valued at $36,538,058.55. This represents a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 566,379 shares of company stock worth $83,662,298 in the last three months. Corporate insiders own 36.66% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of TEAM. Voyager Global Management LP lifted its position in Atlassian by 181.8% during the third quarter. Voyager Global Management LP now owns 1,550,000 shares of the technology company’s stock valued at $247,535,000 after purchasing an additional 1,000,000 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in shares of Atlassian during the 3rd quarter worth $81,443,000. Worldquant Millennium Advisors LLC lifted its holdings in shares of Atlassian by 156.4% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 797,712 shares of the technology company’s stock worth $162,007,000 after acquiring an additional 486,557 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Atlassian by 18.7% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,867,886 shares of the technology company’s stock worth $458,001,000 after acquiring an additional 451,706 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in Atlassian by 39.7% in the third quarter. Marshall Wace LLP now owns 1,216,261 shares of the technology company’s stock valued at $194,237,000 after acquiring an additional 345,394 shares during the last quarter. 94.45% of the stock is currently owned by institutional investors.

About Atlassian

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian’s product portfolio centers on tools designed to help teams plan, build and support software and business processes.