Shares of Atlassian surged as much as 35% after the software company posted a blowout fiscal fourth quarter, with executives crediting artificial intelligence-powered tools embedded across its cloud products for accelerating growth.
The Australian-founded company, best known for Jira and Confluence, reported revenue of $1.77 billion for the quarter ended June 30, up 28% year-over-year and well above the roughly $1.66 billion analysts had expected. Non-GAAP earnings came in at $1.87 a share, versus consensus estimates near $1.48 to $1.50. Cloud revenue grew 31% to about $1.2 billion, and the company posted a 12% GAAP operating margin, marking a return to GAAP profitability.
Remaining performance obligations — a measure of contracted future revenue — rose 44% year-over-year to $4.8 billion, while subscription annual recurring revenue reached $6.6 billion, up 23%. Full fiscal-year 2026 revenue totaled $6.57 billion. Shares, which had been down roughly 30% year-to-date heading into the report and badly lagging the S&P 500's roughly 13% gain, jumped from a $110.28 close to above $149 following the results.
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Mike Cannon-Brookes, co-founder and co-CEO, Atlassian
Atlassian is targeting 13% revenue growth, 25.5% cloud growth and a 25% non-GAAP operating margin for fiscal 2027, according to the company's official earnings release. Cannon-Brookes said the company is "firing across all of our strategic priorities—enterprise, the system of work, and AI—all while driving durable, profitable growth," a message that appeared to resonate with investors who had grown skeptical of the stock through much of the year.
The rebound offers a data point for a software sector still working out how much AI features actually move the needle on enterprise spending, at a moment when many corporate buyers have been cautious about adding new subscription costs. Atlassian's own guidance suggests it expects the momentum to continue into the new fiscal year, though the sharp post-earnings swing also underscores how quickly sentiment can shift for a stock that had spent most of 2026 underperforming the broader market.
