Key Highlights

  • Atlassian shares are up 31.84% in pre-market trading, near $145.25, after closing Wednesday at $110.17
  • Fiscal Q4 2026 revenue reached $1.8 billion, up 28% year over year, beating the $1.78 billion estimate
  • Non-GAAP EPS of $1.87 beat the $1.48 estimate
  • Cloud revenue grew 31% year over year to $1.2 billion
  • AI-powered Rovo adoption continues to scale, used by over 80% of the Fortune 500

What Happened

Atlassian (NASDAQ:TEAM) shares are up 31.84% in pre-market trading, near $145.25, after closing Wednesday at $110.17. Atlassian is a Sydney, Australia founded enterprise software company specializing in collaboration, project management, and IT service management solutions, with widely adopted products including Jira, Confluence, Trello, Loom, and Jira Service Management, serving over 300,000 customers globally.

Fiscal Q4 2026 revenue reached $1.8 billion, up 28% year over year, beating the $1.78 billion estimate. Non-GAAP EPS of $1.87 beat the $1.48 estimate. Cloud revenue grew 31% year over year to $1.2 billion, and remaining performance obligations grew 44% year over year to $4.8 billion, with subscription growth and net revenue retention both around 120%.

Enterprise and AI Momentum Accelerate

Enterprise momentum accelerated, with record quarters of $1 million, $3 million, and $5 million-plus ARR customers, and customers above $3 million in ARR growing over 50% year over year. AI-powered Rovo adoption continues to scale, used by over 80% of the Fortune 500, with Rovo-assisted actions up 50% quarter over quarter.

Looking ahead, management guided fiscal 2027 subscription revenue growth at 18%, down from 23% in fiscal 2026 partly due to lapping a benefit from the Loom acquisition, describing the approach as prudent given macroeconomic uncertainty. CEO Mike Cannon-Brookes highlighted rapid adoption of the company's AI-powered developer tools.

Conclusion

Atlassian's 31.84% pre-market surge reflects strong investor reaction to blowout fiscal Q4 results and continued enterprise and AI momentum, reversing an earlier regular-session decline tied to broader software-sector selloff concerns.

This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a financial professional before making investment decisions.