Atlassian (NASDAQ:TEAM) Posts Quarterly Earnings Results, Beats Expectations By $0.42 EPS

Atlassian (NASDAQ:TEAM) posted its quarterly earnings results on Thursday. The technology company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.33 by $0.42, FiscalAI reports. Atlassian had a negative net margin of 3.50% and a positive return on equity of 5.62%. The firm had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.70 billion. During the same period in the previous year, the firm posted $0.97 earnings per share. The business’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 Up 29.6%

Shares of Atlassian stock traded up $20.29 on Friday, hitting $88.88. The company had a trading volume of 27,361,284 shares, compared to its average volume of 7,734,163. The stock has a market capitalization of $23.44 billion, a price-to-earnings ratio of -123.44 and a beta of 0.99. Atlassian has a 1 year low of $56.01 and a 1 year high of $232.36. The stock has a 50 day moving average of $70.97 and a 200-day moving average of $118.12. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.89 and a current ratio of 0.89.

Insider Transactions at Atlassian

In other news, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $94.81, for a total value of $726,718.65. Following the completion of the sale, the chief executive officer directly owned 275,940 shares of the company’s stock, valued at $26,161,871.40. This represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Joseph Leo Binz sold 1,653 shares of the stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $81.35, for a total value of $134,471.55. Following the completion of the sale, the chief financial officer directly owned 208,639 shares of the company’s stock, valued at approximately $16,972,782.65. This trade represents a 0.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 52,003 shares of company stock valued at $5,338,804. Corporate insiders own 36.66% of the company’s stock.

Institutional Trading of Atlassian

Institutional investors and hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. increased its position in shares of Atlassian by 447.2% during the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock valued at $42,000 after acquiring an additional 161 shares during the last quarter. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Atlassian during the fourth quarter valued at approximately $32,000. Summit Securities Group LLC purchased a new stake in shares of Atlassian during the fourth quarter valued at approximately $42,000. Litman Gregory Wealth Management LLC purchased a new stake in shares of Atlassian during the fourth quarter valued at approximately $42,000. Finally, State of Wyoming increased its position in shares of Atlassian by 59.7% during the second quarter. State of Wyoming now owns 444 shares of the technology company’s stock valued at $90,000 after acquiring an additional 166 shares during the last quarter. 94.45% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Atlassian

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Q3 beat and raised revenue guidance — Atlassian reported ~32% revenue growth (roughly $1.8B) and beat EPS estimates, then lifted its FY revenue growth target, which is the main catalyst for the rally. Read More.
• Positive Sentiment: Strong execution driven by cloud, AI and enterprise expansion — Management pointed to AI features, cloud migrations and growing enterprise adoption (including Rovo usage) as sustainable growth drivers. Read More.
• Positive Sentiment: Street praise and sector lift — Multiple outlets and analysts praised the quarter; the results helped lift other beaten?down SaaS names as investors reassess demand risk for enterprise software. Read More.
• Neutral Sentiment: Mixed analyst/Wall Street reactions — Some commentators called the results “solid,” while others raised questions about margin and longer?term software pricing compression; expect divergent sell?side takes to continue. Read More.
• Neutral Sentiment: Marketplace/venture news — Atlassian Ventures invested in Riffle and a new app launched on the Atlassian Marketplace, supporting ecosystem growth but with limited near?term revenue impact. Read More.
• Negative Sentiment: Some price?target cuts and a neutral/tempered tone — UBS cut its target to $95 and moved to a neutral rating, which could weigh on upside expectations near term. Read More.
• Negative Sentiment: Other target resets — BMO and Piper Sandler lowered targets (BMO to $105, Piper Sandler to $175) even as some keep outperform/overweight stances; these mixed cuts reflect caution on medium?term multiples despite the beat. Read More.

Wall Street Analyst Weigh In

Several research firms have weighed in on TEAM. Oppenheimer decreased their price target on shares of Atlassian from $150.00 to $100.00 and set an “outperform” rating for the company in a research note on Friday, April 17th. Mizuho cut their price target on Atlassian from $185.00 to $145.00 and set an “outperform” rating on the stock in a report on Tuesday, April 14th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Atlassian in a report on Monday, April 20th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $295.00 price target on shares of Atlassian in a report on Friday. Finally, KeyCorp cut their price target on Atlassian from $170.00 to $130.00 and set an “overweight” rating on the stock in a report on Wednesday, April 1st. Twenty-one equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Atlassian presently has a consensus rating of “Moderate Buy” and an average target price of $144.67.

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.