NEW YORK, August 6, 2026, 18:08 EDT — With the U.S. market closed for regular hours, after-hours trading activity continued.
- Atlassian NASDAQ:TEAM was last quoted at $149.20 in after-hours trading, showing a 35.4% gain from Thursday’s closing price.
- Revenue surpassed expectations by 6.4%, and adjusted earnings exceeded forecasts by 24.7%.
- According to company filings, cloud services contributed 74.6% of the year-on-year quarterly revenue growth.
Atlassian shares jumped in after-hours trading on Thursday, following revenue and profit results that exceeded expectations. The company projected first-quarter sales above analysts’ estimates. The stock was up at $149.20, recovering the 2.8% drop recorded during the day.
The most notable growth emerged in the revenue mix. Cloud grew by approximately $285 million compared with the previous year, contributing 74.6% of Atlassian’s nearly $382 million overall increase. Cloud’s portion of total revenue climbed to 68.7%, up from 67.0%.
The composition is significant as Data Center shifts from a benefit to a burden. Atlassian anticipates a 17% contraction in that segment for fiscal 2027. Cloud is projected to expand by 25.5%, with overall revenue increasing by 13%.
Price movement over five sessions
| Date and status | Price | Change from July 31 |
|---|---|---|
| July 31 close | $101.02 | — |
| August 3 close | $103.71 | Increase of 2.7% |
| August 4 close | $110.31 | Up 9.2% |
| August 5 close | $113.32 | Gain of 12.2% |
| August 6 regular close | $110.17 | Now 9.1% above July 31 |
| August 6 after hours | $149.20 | Preliminary jump of 47.7% |
Past closing values; after-hours price is provisional. Percentage moves are based on July 31 figures.
Revenue for the quarter increased by 28% to $1.766 billion. Adjusted earnings were $1.87 per share. Analysts had forecast $1.66 billion in revenue and $1.50 per share.
Fourth-quarter report card
| Metric | Actual | Comparison | Result |
|---|---|---|---|
| Revenue | $1.766 billion | $1.660 billion consensus | 6.4% above; 28% increase |
| Adjusted EPS | $1.87 | $1.50 consensus | 24.7% above; 91% increase |
| Cloud revenue | $1.213 billion | $928 million year earlier | 31% increase |
| GAAP operating margin | 12% | Negative 2% year earlier | Improved by 14 points |
| Free cash flow | $475 million | $360.3 million year earlier | 31.8% increase |
Consensus and percentage variations are derived from the disclosed data.
Chief Executive Mike Cannon-Brookes said, “In the AI era, context is the edge.” Chief Financial Officer James Chuong commented that enterprises regard Atlassian “as a long-term, strategic partner.” Remaining performance obligations increased by 44%, while ARR grew by 23%. The gap was driven by record large contracts. SEC
The number of customers with annual recurring revenue of at least $3 million rose by more than 50%. Customers surpassing $5 million in ARR climbed over 70%. Atlassian secured its biggest enterprise deal yet.
Atlassian’s Jira control-plane proposal is now supported by usage statistics. Monthly active users for Atlassian’s MCP Server and Teamwork Graph CLI surpassed one million. Usage increased by over twofold in the quarter, with MCP requests climbing more than 400%.
Rovo users finished 20% more Jira tasks than those who did not use Rovo. They also generated or modified 25% more Confluence pages. Their annual recurring revenue increased at over double the pace. The company says these comparisons are not evidence of causality.
Management projects first-quarter revenue between $1.705 billion and $1.715 billion, with the midpoint standing 2.4% higher than the $1.67 billion consensus. Fiscal 2027 guidance signals approximately $7.427 billion, about 0.9% above consensus.
Fiscal 2027 margin and growth breakdown
| Metric | Company forecast | Reference point | Calculated spread |
|---|---|---|---|
| First-quarter revenue | $1.705–$1.715 billion | $1.670 billion consensus | Midpoint 2.4% above |
| Full-year revenue | 13%; implied $7.427 billion | $7.360 billion consensus | 0.9% above |
| Cloud revenue growth | 25.5% | 31% in fourth quarter | 5.5 points less |
| Data Center growth | Negative 17% | 21% in fourth quarter | 38-point swing |
| Subscription ARR growth | 18% | 23% in fiscal 2026 | 5 points less |
| Non-GAAP operating margin | 25% | 30% in fiscal 2026 | 5 points less |
The projected annual revenue and comparative spreads are derived estimates.
Data Center revenue rose 21% during the quarter. Growth benefited from upfront license recognition and pricing actions. This impact is set to reverse in fiscal 2027 as earlier purchases wind down and clients transition to the cloud. The company projects overall revenue growth will pick up again in fiscal 2028.
The shift involves a cost to margins. Non-GAAP operating margin for fiscal 2027 is projected at 25%. Atlassian noted that fiscal 2026 margins improved by roughly four points due to Data Center timing. A compensation mix with a higher cash component could reduce fiscal 2027 margin by three points.
The action on Thursday outpaced the most recent analysis from the sell side. Each target in the current slate of recommendations was under the initial after-hours price.
Latest analyst ratings
| Research firm | Date | Rating | Target | Gap to $149.20 |
|---|---|---|---|---|
| Macquarie Group ASX:MQG | July 29 | Outperform | $130 | Down 12.9% |
| BofA Securities — Bank of America NYSE:BAC | July 16 | Neutral | $105 | Down 29.6% |
| BTIG | July 10 | Buy | $130 | Down 12.9% |
| KeyBanc — KeyCorp NYSE:KEY | July 8 | Overweight | $115 | Down 22.9% |
| BMO Capital Markets — Bank of Montreal NYSE:BMO | June 25 | Outperform | $95 | Down 36.3% |
Each recommendation was issued before the results. Target gaps are calculated with the initial after-hours price.
Before the release, broader consensus was tilted positive, with 24 Buy, five Overweight, and six Hold recommendations. The average price target was $138.64 and the median was $117.50. In after-hours trading, shares were up 7.6% compared to the average target and 27.0% above the median.
Valuation continues to be highly dependent on the chosen model. A pre-earnings assessment gave a fair value estimate of $83.41, while a discounted-cash-flow calculation arrived at $217.56. The 2.6 times difference highlights the substantial impact of assumptions around margin and terminal growth.
Cannon-Brookes also aims to acquire as much as $250 million in shares. The proposed Rule 10b5-1 plan still faces a cooling-off interval. Market response will be gauged during Friday’s cash session. Focus will turn to nearly 28.5% first-quarter cloud growth and a 4% drop in Data Center.
Risks: Liquidity during after-hours trading may amplify price fluctuations. Projected cloud performance for fiscal 2027 is set to trail the growth rate seen in the most recent quarter. Declining Data Center revenues, increased expenses linked to Rovo hosting, and compensation weighted towards cash may impact margins. AI engagement figures disclosed may not translate into sustained paid growth.
Atlassian surpassed expectations with its earnings, passing its short-term growth hurdle. The challenge ahead is for cloud revenue to offset losses from Data Center while maintaining margins.
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