Software company Atlassian beat earnings and revenue estimates last quarter as cloud revenue rose, with shares surging 24.8% to rebound from their recent decline.
Earnings per share were US$1.75, rising from $0.97 one year ago and above the Zacks consensus estimate of $1.31. Revenue was up 32% to $1.79 billion, surpassing estimates by 5.52%.
“Our strong Q3 results show the power of our strategy in action, with total revenue growing 32% year-over-year to $1.8 billion, as customers sign bigger, longer-term commitments, and connect their teams and workflows on our AI-powered platform,” said CEO Mike Cannon-Brookes.
“The momentum across our three strategic priorities of Enterprise, AI, and the System of Work continues to build, and I’m excited about the significant opportunity ahead to drive durable, profitable growth as we scale,” said CFO James Chuong.
The company’s cloud revenue grew 29% to $1.13 billion. It had 55,913 customers with more than $10,000 in cloud annualised recurring revenue, a 10% increase.
Atlassian posted a $56.23 million operating loss last quarter due to restructuring charges of $223.8 million. Its adjusted operating income was $456.54 million, up from $261.50 million.
Its guidance for its fiscal fourth quarter includes revenue of $1.653-1.661 billion. Across the fiscal year, Atlassian projects revenue growth of around 24% and cloud revenue growth of 26.5%.
Shares in Atlassian (NASDAQ: TEAM) have fallen by 55.7% in 2026 to date, partly due to a major sell-off in software-as-a-service stocks in February amid investor concerns about AI disruption.
Atlassian’s shares closed 2.7% lower at $68.59, before jumping 24.8% after-hours following the earnings release. Its market capitalisation is $18.09 billion.
