Atlassian (NASDAQ:TEAM) Announces Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Atlassian (NASDAQ:TEAM) issued its earnings results on Thursday. The technology company reported $1.22 EPS for the quarter, beating the consensus estimate 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 company had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter in the previous year, the company posted $0.96 EPS. The business’s revenue for the quarter was up 23.3% compared to the same quarter last year.

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 Stock Performance

Atlassian stock traded down $3.21 during midday trading on Friday, reaching $95.20. 7,110,234 shares of the company’s stock were exchanged, compared to its average volume of 5,212,564. The stock’s 50-day simple moving average is $145.60 and its 200 day simple moving average is $159.15. The firm has a market cap of $25.05 billion, a price-to-earnings ratio of -133.97, a P/E/G ratio of 16.27 and a beta of 0.88. 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 $92.47 and a 52 week high of $326.00.

Insider Transactions at Atlassian

In other Atlassian news, President Anutthara Bharadwaj sold 9,847 shares of the company’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $152.46, for a total value of $1,501,273.62. Following the transaction, the president directly owned 242,092 shares in the company, valued at $36,909,346.32. The trade was a 3.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction dated Thursday, November 13th. The shares were sold at an average price of $153.77, for a total transaction of $1,178,647.05. Following the completion of the transaction, the chief executive officer directly owned 237,615 shares in the company, valued at $36,538,058.55. The trade was a 3.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 551,049 shares of company stock worth $81,277,257. 36.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On Atlassian

Several hedge funds have recently bought and sold shares of TEAM. Sivia Capital Partners LLC increased its holdings in shares of Atlassian by 27.5% during the second quarter. Sivia Capital Partners LLC now owns 1,873 shares of the technology company’s stock worth $380,000 after purchasing an additional 404 shares during the period. Lido Advisors LLC grew its position in Atlassian by 44.3% during the third quarter. Lido Advisors LLC now owns 2,921 shares of the technology company’s stock worth $467,000 after buying an additional 897 shares in the last quarter. Boothbay Fund Management LLC bought a new position in Atlassian during the 3rd quarter worth $352,000. Tower Research Capital LLC TRC raised its holdings in Atlassian by 78.7% in the 3rd quarter. Tower Research Capital LLC TRC now owns 3,097 shares of the technology company’s stock valued at $495,000 after acquiring an additional 1,364 shares in the last quarter. Finally, Optimist Retirement Group LLC lifted its position in shares of Atlassian by 36.8% during the 2nd quarter. Optimist Retirement Group LLC now owns 1,445 shares of the technology company’s stock valued at $293,000 after acquiring an additional 389 shares during the period. 94.45% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on TEAM shares. Piper Sandler reissued an “overweight” rating and issued a $200.00 price target (down previously from $280.00) on shares of Atlassian in a report on Friday. Weiss Ratings reissued a “sell (e+)” rating on shares of Atlassian in a research note on Wednesday, January 21st. Sanford C. Bernstein raised their price target on Atlassian from $290.00 to $304.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 18th. Macquarie decreased their price objective on Atlassian from $250.00 to $240.00 and set an “outperform” rating for the company in a research report on Monday, November 3rd. Finally, Wells Fargo & Company restated an “overweight” rating and set a $155.00 target price on shares of Atlassian in a report on Friday. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Atlassian presently has a consensus rating of “Moderate Buy” and a consensus price target of $192.52.

Atlassian News Summary

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Q2 beat on both EPS and revenue — Atlassian reported $1.22 EPS vs. $1.12 expected and $1.59B revenue (vs. $1.54B est.), with 23% YoY revenue growth, giving near?term fundamental support to the stock. Earnings/Press Release
• Positive Sentiment: Management raised fiscal?2026 revenue guidance and provided higher revenue targets for the year, citing resilient enterprise software spending and AI adoption — a constructive signal for longer?term growth expectations. Reuters: Revenue Forecast Raised
• Positive Sentiment: Company is highlighting record cloud revenue and a target of 20%+ annual revenue growth through FY27 driven by AI integrations and enterprise expansion — a positive strategic catalyst if execution continues. Seeking Alpha: Growth Target
• Neutral Sentiment: Analysts trimmed price targets but mostly kept buy/overweight ratings (examples: Morgan Stanley, Mizuho, BTIG, Guggenheim lowered targets while remaining constructive) — lowers near?term upside expectations but preserves overall analyst support. Benzinga: Analyst Target Changes
• Negative Sentiment: Insider selling by co?founders/executives (multiple disclosed sales of 7,665-share blocks) is being viewed negatively by the market and likely amplified intraday selling pressure. SEC Filing: Insider Sales
• Negative Sentiment: Cantor Fitzgerald’s sizeable cut to a $146 target and broader AI?related fears in the software sector have increased volatility and investor caution around growth and competitive risks. Cantor Fitzgerald Target Cut CNBC: Sector AI Fears
• Negative Sentiment: Market reaction: shares dipped despite the beat as investors worry cloud growth could slow and new AI features from competitors add execution risk. Investing.com: Shares Dip

Atlassian Company Profile

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.