NEW YORK, August 7, 2026, 07:05 EDT
- The stock was recently quoted at $145.50 in premarket trade, up 32.1%. Regular U.S. trading hours had yet to start.
- Outlook for fiscal 2027 projects cloud growth at 25.5% and a 17% decrease in Data Center revenue.
- Bank of America NYSE:BAC raised its rating on the stock. KeyBanc and Jefferies Financial Group NYSE:JEF increased their price targets.
Shares of Atlassian Corporation NASDAQ:TEAM were set to open 32.1% higher at $145.50 ahead of the start of U.S. regular trading on Friday.
The surge came after the company reported strong fourth-quarter results. Revenue surpassed the average analyst estimate by 6.4%, and adjusted earnings exceeded expectations by 24.7%.
Atlassian’s forecast for fiscal 2027 revenue shows a notable investor signal, with cloud projected to increase by 25.5% and Data Center anticipated to decline by 17%.
A rough estimate with the rounded reference shows cloud accounting for 74.5% of projected revenue for next year. This is 7.4 percentage points higher than in fiscal 2026.
Q4 results overview
| Metric | Q4 FY2026 | Comparison | Investor signal |
|---|---|---|---|
| Revenue | $1.766 billion | $1.660 billion estimate | 6.4% above; 28% up |
| Adjusted EPS | $1.87 | $1.50 estimate | 24.7% above |
| Cloud revenue | $1.213 billion | $928 million year earlier | 31% higher |
| GAAP operating margin | 12% | Negative 2% year earlier | 14-point improvement |
| Remaining obligations | $4.817 billion | 44% yearly rise | Improved visibility |
Reuters reports company data and analyst forecasts. Reported figures are used to determine percentage surprises.
Cloud accounted for 68.7% of revenue during the quarter. Remaining performance obligations increased by 44%, and the GAAP operating margin stood at 12%.
Chief Executive Mike Cannon-Brookes said, “Q4 closes out a year that proves our long-term strategy is paying off.” Free cash flow for the fiscal year totaled $1.319 billion, generating a 20% margin. Q4 Investor Relations
Atlassian’s deployment revenue bases allow the 13% headline to be reconstructed.
Fiscal 2027 revenue breakdown
| Deployment | FY2026 revenue | FY2027 growth guide | Preliminary FY2027 revenue | Change | Preliminary mix |
|---|---|---|---|---|---|
| Cloud | $4.411 billion | 25.5% | $5.535 billion | $1.125 billion | 74.5% |
| Data Center | $1.831 billion | Minus 17.0% | $1.520 billion | Down $311 million | 20.5% |
| Marketplace and other | $331 million | 12.0% | $370 million | $40 million | 5.0% |
| Total | $6.572 billion | Roughly 13.0% | $7.425 billion | $853 million | 100% |
These initial example figures are derived from approximate company-provided guidance. They do not represent extra forecasts from the company, and actual outcomes might vary.
The decrease in Data Center revenue subtracts approximately $311 million. This partially balances an increase of about $1.164 billion from cloud and marketplace operations.
The slowdown reduces overall company growth by roughly 4.7 percentage points, while the two growing segments add nearly 17.7 points to the total.
Atlassian announced March 28, 2029, as the end-of-life date for relevant Data Center products. The decrease is a result of both controlled migration efforts and client demand.
Short-term outlook came in higher. The first-quarter midpoint of $1.710 billion is roughly 3% higher than analysts’ consensus forecast. Cloud expansion is projected at 28.5%.
AI integration provided a lift. Management reported that companies using Rovo are seeing recurring revenue increase at over double the pace of those not using it. Rovo-driven actions increased by 50% compared to the previous quarter.
Cannon-Brookes intends to make open-market purchases totalling as much as $250 million under a Rule 10b5-1 plan. This amount, based on a price of $145.50 per share, would amount to roughly 1.7 million shares.
Analysts acted early ahead of the market open.
Analyst ratings
| Firm and analyst | Recommendation | New target | Previous target | Upside from $145.50 |
|---|---|---|---|---|
| Bank of America NYSE:BAC, Koji Ikeda | Upgraded to Buy from Neutral | $175 | $105 | 20.3% |
| KeyBanc, Jason Celino | Overweight, rating unchanged | $185 | $115 | 27.1% |
| Jefferies Financial Group NYSE:JEF, Brent Thill | Buy, rating unchanged | $200 | $150 | 37.5% |
Upside reflects the most recent referenced premarket indication. Analyst moves were released early Friday.
Bank of America’s Ikeda described Atlassian as “an AI beneficiary rather than an AI victim.” Jefferies projected that medium-term revenue could grow by at least 20%. TipRanks
The updated targets maintain further potential gains following the premarket rally. However, the initial test during standard trading hours follows a movement that developed solely ahead of the market open.
Risks: The rally assumes a seamless shift to cloud. For fiscal 2027, the non-GAAP operating margin outlook is 25%, compared to 30% in fiscal 2026, and GAAP margin stands at just 4.5%. Data Center may decline more quickly, and the founder’s buy remains a stated intention, not yet executed.
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