Key Highlights

• Atlassian shares surged approximately 35.31 percent to $149.07, a gain of $38.90 from a prior close of $110.17, its biggest single-day gain in years.

• Fiscal fourth quarter revenue reached $1.9 billion, beating estimates, with cloud revenue up 31 percent year over year and RPO up 44 percent to $4.8 billion.

• Enterprise momentum accelerated, with record quarterly deals at $1 million, $3 million, and $5 million ARR; customers spending over $50,000 annually grew 70 percent year over year, and $5 million-plus ARR customers grew over 70 percent.

• A wave of bullish analyst reactions followed, including price target upgrades to $175 from $105 by BofA, alongside strong Rovo AI adoption, used by over 80 percent of Fortune 500 customers, with usage more than doubling quarter over quarter.

Fiscal Q4 Results Beat Across the Board

Atlassian Corporation (NASDAQ:TEAM) shares closed up 35.31 percent at $149.07, marking the stock's biggest single-day gain in years, after fiscal fourth quarter results topped expectations across nearly every metric. Total revenue reached $1.9 billion, up 31 percent year over year, cloud revenue growth also came in at 31 percent year over year, and remaining performance obligations rose 44 percent to $4.8 billion, while GAAP operating margin reached 12 percent, with subscription IRR growth of 23 percent and net revenue retention north of 120 percent.

Enterprise momentum accelerated meaningfully, with record quarterly deals at the $1 million, $3 million, and $5 million ARR levels. Customers spending over $50,000 annually grew 70 percent year over year, and $5 million-plus ARR customers grew over 70 percent year over year, with the company still representing only 85 percent of the Fortune 500, leaving considerable runway for further enterprise expansion.

AI Adoption and Analyst Reaction

AI/Rovo adoption continued to scale, used by over 80 percent of Fortune 500 customers, with Rovo-assisted actions up 50 percent quarter over quarter and MCP/CLI calls up 400 percent in the quarter, having surpassed 1 million users. Teamwork Graph delivers more accurate answers while using 48 percent fewer tokens, according to the company.

A wave of bullish analyst reactions followed the results, including a price target upgrade to $175 from $105 by BofA, alongside similar increases from Morgan Stanley, Oppenheimer, KeyBanc, and Truist. However, forward guidance for fiscal 2027 subscription IRR growth was set at approximately 18 percent, down from 23 percent in fiscal 2026, due in part to lapping the Loom acquisition, a prudent approach that reflects macro and geopolitical uncertainty.

What Investors May Watch Next

Market participants are likely to watch whether enterprise expansion momentum continues into fiscal 2027, alongside the trajectory of Rovo AI adoption and monetization. The company's full-year fiscal 2027 GAAP operating margin target of 4.5 percent, emphasizing durable and profitable growth, along with continued investment in enterprise go-to-market motion and AI infrastructure, may also factor into sentiment toward the stock in coming quarters.

Conclusion

In summary, Atlassian (NASDAQ:TEAM) shares rose approximately 35.31 percent to $149.07 at last closing, driven by fiscal fourth quarter results that beat across revenue, cloud growth, and enterprise customer metrics, alongside a wave of analyst price target increases. These are the verified facts from the earnings release and market data. Whether the rally proves durable may depend on continued enterprise momentum and execution against the more measured fiscal 2027 guidance.