Atlassian (NASDAQ:TEAM) Issues Earnings Results

Atlassian (NASDAQ:TEAM) released its earnings results on Thursday. The technology company reported $1.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.42, FiscalAI reports. Atlassian had a negative net margin of 3.29% and a negative return on equity of 6.33%. The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the prior year, the firm earned $0.97 EPS. The company’s revenue was up 31.7% compared to the same quarter last year.

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

• Strong Q3 financials — total revenue grew 32% year-over-year to $1.8 billion, cloud revenue surpassed $1.1 billion (+29% YoY), and RPO rose 13% to $4 billion, signaling continued growth momentum.
• Rapid AI adoption — Rovo added millions of monthly active users, AI credit usage is growing >20% month-over-month, and customers using Rovo are growing ARR at roughly twice the rate of non-users, contributing to cloud outperformance and expansion.
• Enterprise traction and share gains — Atlassian reported its largest-ever quarter for competitive displacements (notably in Service Collection), the Service Collection passed $1 billion ARR, and NRR remains north of 120%, reflecting strong retention and cross-sell.
• Data Center revenue lumpiness — Q3 outperformance included approximately $50 million of upfront term license revenue pulled forward after the Data Center end-of-life announcement and a pricing change, creating timing distortions that could pressure FY2027 comparability.
• Pricing and profitability stance — Atlassian says it will remain customer-led on seat-based and consumption meters, reinvest in AI and enterprise while pursuing durable, profitable growth, and will provide enhanced ARR disclosures at Team ’26 to clarify timing effects.

Atlassian Stock Performance

Shares of NASDAQ TEAM traded down $1.90 during trading hours on Thursday, hitting $68.59. 8,283,412 shares of the stock were exchanged, compared to its average volume of 7,493,602. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.89 and a quick ratio of 0.89. The company’s 50 day moving average is $70.97 and its 200 day moving average is $118.12. The firm has a market capitalization of $18.09 billion, a P/E ratio of -95.26 and a beta of 0.99. Atlassian has a one year low of $56.01 and a one year high of $242.00.

Analysts Set New Price Targets

TEAM has been the topic of several analyst reports. Citigroup lowered shares of Atlassian from a “buy” rating to a “mixed” rating in a research note on Friday, April 17th. Robert W. Baird set a $140.00 price target on shares of Atlassian in a research note on Friday, February 6th. Canaccord Genuity Group dropped their price target on shares of Atlassian from $185.00 to $150.00 and set a “buy” rating on the stock in a research note on Wednesday, April 15th. Wolfe Research restated an “outperform” rating and issued a $100.00 target price on shares of Atlassian in a report on Thursday, March 12th. Finally, Zacks Research upgraded Atlassian from a “strong sell” rating to a “hold” rating in a report on Monday, April 6th. Nineteen 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’s stock. Based on data from MarketBeat, Atlassian currently has an average rating of “Moderate Buy” and a consensus price target of $152.22.

Atlassian News Roundup

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Q3 results beat on both top and bottom lines: revenue of ~$1.79B (≈+32% YoY) and non-GAAP EPS $1.75, both ahead of Street estimates — the core catalyst for the post-earnings rally. Atlassian Announces Third Quarter Fiscal Year 2026 Results
• Positive Sentiment: Management raised its full-year revenue outlook, citing momentum from AI-driven features and stronger enterprise sales (and continued cloud/data-center migration), which supports a higher growth trajectory and margin improvement expectations. Atlassian lifts annual revenue forecast as AI features, enterprise sales boost growth
• Positive Sentiment: Market reaction: multiple reports show shares jumped sharply in extended trading (double-digit gains) after the beat and raised guidance — a direct short-term upward driver for the stock. Atlassian (NASDAQ:TEAM) Beats Q1 CY2026 Sales Expectations, Stock Jumps 13.6%
• Neutral Sentiment: Company posted the shareholder letter/press release and updated metrics on the investor site — useful for detailed modeling (product-level growth, cloud vs. server, margin assumptions). Atlassian Investor Relations
• Neutral Sentiment: Partner ecosystem development: Spin.AI’s acquisition of Revyz highlights strengthened third-party backup/security tooling for Jira/Confluence, which could improve enterprise retention and upsell over time. Spin.AI Revyz Deal Highlights Atlassian Ecosystem’s Role In Enterprise Security
• Negative Sentiment: Some sell-side activity: at least one reported price-target cut (example: to $146.60), indicating analysts remain mixed on sustainable valuation despite the beat. That could cap upside once the immediate enthusiasm fades. Atlassian (TEAM) price target decreased by 12.87% to 146.60
• Negative Sentiment: Recent multi-month share weakness: analysts and commentary note a sharp 90-day decline before the rebound — investors should weigh short-term momentum against prior volatility and longer-term execution risk. Evaluating Atlassian (TEAM) After A Sharp 90 Day Share Price Decline And Recent Rebound

Insider Buying and Selling at Atlassian

In related news, CTO Rajeev Bashyam Rajan sold 3,072 shares of the company’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $81.35, for a total transaction of $249,907.20. Following the completion of the sale, the chief technology officer directly owned 212,916 shares of the company’s stock, valued at approximately $17,320,716.60. This represents a 1.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $94.81, for a total transaction of $726,718.65. Following the sale, the chief executive officer directly owned 275,940 shares of the company’s stock, valued at approximately $26,161,871.40. This represents a 2.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 67,333 shares of company stock worth $7,165,373 in the last quarter. 36.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Atlassian

Several large investors have recently bought and sold shares of TEAM. NewEdge Advisors LLC raised its stake in Atlassian by 71.6% during the 1st quarter. NewEdge Advisors LLC now owns 5,432 shares of the technology company’s stock valued at $1,153,000 after purchasing an additional 2,267 shares during the last quarter. Empowered Funds LLC raised its stake in Atlassian by 39.5% during the 1st quarter. Empowered Funds LLC now owns 4,689 shares of the technology company’s stock valued at $995,000 after purchasing an additional 1,328 shares during the last quarter. Focus Partners Wealth raised its stake in Atlassian by 32.6% during the 1st quarter. Focus Partners Wealth now owns 4,122 shares of the technology company’s stock valued at $875,000 after purchasing an additional 1,014 shares during the last quarter. Geneos Wealth Management Inc. raised its stake in Atlassian by 447.2% during the 1st quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock valued at $42,000 after purchasing an additional 161 shares during the last quarter. Finally, Sivia Capital Partners LLC raised its stake in Atlassian by 27.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,873 shares of the technology company’s stock valued at $380,000 after purchasing an additional 404 shares during the last quarter. 94.45% of the stock is currently owned by institutional investors and hedge funds.

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.