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Atlassian Soars After Earnings as AI Momentum Sparks Software Sector Re-Rating
August 7, 2026 9:48 AM
IH Market News
Atlassian (NASDAQ:TEAM) was indicated more than 30% higher in pre-market trading on Friday after delivering fiscal fourth-quarter results that comfortably exceeded Wall Street expectations, prompting investors to rethink concerns that artificial intelligence could undermine traditional enterprise software providers.
The company reported quarterly revenue of $1.77 billion, up 28% from a year earlier and well ahead of analysts’ forecasts of $1.66 billion.
The earnings release is being viewed as more than just a company-specific success. Enterprise software stocks have faced heavy selling this year amid fears that AI would replace many workplace productivity and collaboration platforms.
Atlassian’s performance is now being interpreted as evidence that AI can enhance, rather than disrupt, software businesses. Analysts suggested the results could also improve sentiment toward peers including Datadog (NASDAQ:DDOG) and Snowflake (NASDAQ:SNOW), both of which may benefit from a broader sector re-rating.
Adjusted earnings reached $1.87 per share, comfortably exceeding the consensus estimate of $1.50.
Cloud revenue climbed 31% year over year to $1.21 billion and accounted for 68.7% of total revenue, compared with 67.0% a year earlier. Remaining performance obligations increased 44% to $4.8 billion, providing strong visibility over future revenue. Atlassian also returned to GAAP operating profitability for the first time in more than two years, delivering a 12% operating margin.
The company’s Rovo AI platform emerged as one of the standout drivers during the quarter.
Management said more than 80% of Fortune 500 companies now use Rovo, while Rovo-assisted actions increased 50% compared with the previous quarter. Users of the platform completed 20% more Jira tasks and created 25% more Confluence pages than customers not using the AI tools.
CEO Mike Cannon-Brookes described the company’s competitive advantage by saying, “in the AI era, context is the edge.”
He also demonstrated confidence in Atlassian’s outlook by announcing plans to purchase up to $250 million worth of the company’s shares.
The earnings report prompted a wave of positive analyst reactions.
Bank of America upgraded Atlassian to Buy from Neutral and lifted its price target to $175 from $105, describing the company as “an AI beneficiary rather than AI victim.” The bank highlighted Atlassian’s Teamwork Graph as a key competitive advantage that could prove difficult for rivals to replicate.
Mizuho’s Jordan Klein was equally enthusiastic, writing, “TEAM would be my GAME CHANGER stock of the day and key name to watch.”
He added, “28% rev growth crushed Street at 20%, core Cloud growth accelerated, and the big risk of initial FY27 growth guide now defanged and was better. Best yet is CEO buying $250M of stock, and new AI related products gaining serious traction. WHY I THINK STOCK GETS CHASED & GOES HIGHER: its still super cheap for the growth: 5x EV/Sales even up 33% and 16x EV/FCF.”
Atlassian’s results arrive as investors reassess how artificial intelligence will affect the software industry.
Earlier this week, Shopify delivered stronger-than-expected results that also suggested AI is supporting business growth rather than replacing software platforms. That contrasted with earlier concerns following results from ServiceNow and IBM, which had intensified fears of AI-driven disruption across the sector.
HSBC had previously argued that enterprise software companies “will not be threatened by AI” and that depressed valuations presented an attractive buying opportunity. Atlassian’s latest performance is likely to reinforce that view.
Before Friday’s rally, Atlassian shares had fallen around 32% since the start of the year. At the indicated pre-market price of approximately $144.61, the stock was on course to reach its highest level in roughly seven months after closing at $110.17 on Thursday.
Despite the upbeat quarter, investors will continue to examine the company’s fiscal 2027 outlook. Management forecast annual revenue growth of 13%, well below the 28% growth reported for the latest quarter, as its Data Center business is expected to decline 17% while customers continue migrating to cloud-based services.
The combination of slower forward guidance and the release of the U.S. July employment report ahead of Friday’s opening bell could contribute to heightened volatility as the market assesses Atlassian’s longer-term outlook.
The post Atlassian Soars After Earnings as AI Momentum Sparks Software Sector Re-Rating appeared first on US Editors.
Original: Atlassian Soars After Earnings as AI Momentum Sparks Software Sector Re-Rating
Atlassian Announces System for AI-native Software Development in Jira
July 15, 2026 4:05 PM
Business Wire
New Jira and Teamwork Graph capabilities give engineering organizations a single place to plan, orchestrate, and scale agentic work across the full software development lifecycle
Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced new capabilities in Jira to advance AI-native software development for every engineering organization.
This launch addresses a widening productivity gap: while AI usage by engineers has increased by 65%, developer velocity gains remain at approximately 10% (Atlassian DX longitudinal study, 2026). This plateau is driven by three core bottlenecks: a lack of enterprise context causing AI output to drift from requirements; unsolved SDLC bottlenecks outside of code generation, such as planning, review and maintenance; and difficulty of integrating AI across team workflows.
“The bottleneck in AI-native development isn't agent capability, it's coordination at scale to keep our engineers in the flow,” said Sean Joerg, Deputy CISO & Head of Corporate Engineering, Reddit. “We're partnering with Atlassian to solve that: one place where every agent action is visible, governed, and tied to a business outcome.”
Today's announcements give teams the ability to plan, orchestrate, and scale agentic work across the full software development lifecycle, whether they’re working in Jira or their coding environments. Atlassian’s Teamwork Graph provides the enterprise context behind many of these capabilities, connecting work, teams, goals, code, and knowledge across the SDLC so agents can act with greater relevance and accuracy. In internal benchmarking, agents enriched by Teamwork Graph showed 44% more accurate results while using 48% fewer tokens than agents operating without that context.
Accelerating planning and spec-definition through enterprise context
AI agents are only as useful as the intent and context they receive. These capabilities help teams turn conversations, requirements, codebase context, and product decisions into work agents can understand and act on.
Delegate and monitor agent work more efficiently
As teams adopt multiple coding agents, Jira keeps work grounded in the same source of truth whether execution happens inside Jira, in a cloud agent, or locally in a developer environment.
Deploy coding agents more intelligently across the enterprise
To move agentic work from experiments to enterprise adoption, organizations need automation, onboarding, and measurement built into the systems teams already use.
“As AI coding agents proliferate, the real bottleneck isn't model intelligence; it's organizational context. Agents operating without a deep understanding of team decisions, architectural constraints, and project history produce misaligned code more quickly, leading to technical debt and production issues,” said Jim Mercer, Program Vice President, Software Development, DevOps, and DevSecOps, IDC. “By leveraging Jira and the Teamwork Graph, Atlassian is building a context layer for AI. As the system of record for agile development, it can turn tribal knowledge into a persistent, queryable data layer that can improve code quality and release velocity across the enterprise.”
“LLMs have made writing code nearly instant. The heavy lifting is now everything around it: defining what to build, governing what ships, and coordinating across humans and agents at scale,” said Taroon Mandhana, CTO, AI and Teamwork, Atlassian. “Jira has been the system of record for software teams for two decades. Today, we're extending that to every agent working alongside them.”
Availability
Agents in Jira (Claude Code, Cursor, and GitHub Copilot), Jira for Slack, Jira coding agent, Jira agent automations, agentic templates, and agent sessions in Jira are available today for paid Jira Cloud customers at no additional cost. The waitlist for Jira Planner EAP is open, Rovo for Microsoft Teams is available in early access, and Codex in Jira is coming soon. DX AI cost management is available for Atlassian DX customers. Learn more at Jira for AI-Native Software Development | Plan and Orchestrate AI Agents.
About Atlassian
Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 85% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260715176442/en/
Arseny Tseytlin | press@atlassian.com
Original: Atlassian Announces System for AI-native Software Development in Jira
Atlassian (DX) Named a Leader in the 2026 Gartner® Magic Quadrant™ for Developer Productivity Insight Platforms
June 25, 2026 9:05 AM
Business Wire
Atlassian (DX) recognized for Completeness of Vision and Ability to Execute in the inaugural evaluation of the rapidly growing DPIP market
Atlassian Corporation (Nasdaq: TEAM), a leading provider of team collaboration and productivity software, has been named a Leader in the inaugural Gartner® Magic Quadrant™ for Developer Productivity Insight Platforms (DPIP). Notably, Atlassian (DX) was recognized for its Ability to Execute and Completeness of Vision among 12 evaluated vendors.
According to the report, the "primary catalyst for the market's recent acceleration is the widespread adoption of AI coding assistants, automated test generation, and agent-based workflows," elevating DPIP to "a foundational pillar of enterprise AI governance and engineering strategy." Organizations are increasingly trying to understand productivity gains and returns on their AI investments. By integrating DX into Atlassian’s System of Work, customers gain the insights and tools to make teams more effective than ever before.
It’s Atlassian (DX)'s view that it was recognized for the strength of its product, and believes the frameworks, data, and capabilities provided help engineering leaders measure what matters. Atlassian (DX)'s responsiveness in shipping AI measurement capabilities also help organizations quantify AI's impact, and its global reach across EMEA, North America, and APAC supports distributed enterprises wherever their teams are.
Greyson Junggren, co-founder and Chief Revenue Officer of DX, said, "Less than a year ago, Atlassian made a strategic bet that engineering leaders need more than dashboards. They need a research-backed, holistic understanding of developer experience to unlock the full potential of AI-accelerated development. We believe this recognition from Gartner validates that strategy and Atlassian’s ability to deliver these insights at a global scale."
Atlassian continues to invest in DX capabilities that enable engineering leaders to:
To learn more, download a complimentary copy of the Gartner® Magic Quadrant™ for Developer Productivity Insight Platforms here.
About Atlassian
Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 80% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.
Gartner Disclaimer
Gartner does not endorse any vendor, product, or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally. Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved.
Gartner, Magic Quadrant for Developer Productivity Insight Platforms, By Frank O'Connor et. al, 5 May 2026
View source version on businesswire.com: https://www.businesswire.com/news/home/20260625865360/en/
Media Contact:
Arseny Tseytlin
press@atlassian.com
Atlassian Announces Third Quarter Fiscal Year 2026 Results
April 30, 2026 4:05 PM
Business Wire
Revenue of $1,787 million, up 32% year-over-year
Cloud revenue of $1,132 million, up 29% year-over-year
Remaining performance obligations of $3,996 million, up 37% year-over-year
GAAP operating margin of (3)% and non-GAAP operating margin of 34%
Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter ended March 31, 2026. A shareholder letter was posted on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.
“Our strong Q3 results show the power of our strategy in action, with total revenue growing 32% year-over-year to $1.8 billion, as customers sign bigger, longer-term commitments, and connect their teams and workflows on our AI-powered platform,” said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder. “Service Collection eclipsed $1 billion in ARR, and is growing over 30% year-over-year, as it continues to take share and reinforce our conviction in the long-term growth opportunity of the Atlassian System of Work.”
“Cloud revenue growth accelerated to 29% year-over-year as customers deepen their engagement with our System of Work through continued strong seat expansion in Jira and adoption of Teamwork Collection for its increased AI capabilities,” said James Chuong, Atlassian's CFO. “The momentum across our three strategic priorities of Enterprise, AI, and the System of Work continues to build, and I’m excited about the significant opportunity ahead to drive durable, profitable growth as we scale.”
Third Quarter Fiscal Year 2026 Financial Highlights:
On a GAAP basis, Atlassian reported:
On a non-GAAP basis, Atlassian reported:
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-GAAP Financial Measures.”
Recent Business Highlights:
Financial Targets:
Atlassian is providing its financial targets as follows:
Fourth Quarter Fiscal Year 2026:
Fiscal Year 2026:
For additional commentary regarding financial targets, please see Atlassian’s third quarter fiscal year 2026 shareholder letter dated April 30, 2026.
With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.
Shareholder Letter and Webcast Details:
A detailed shareholder letter is available on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:
Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.
About Atlassian
Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 85% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” “further,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and capabilities and planned offerings and capabilities, investments, System of Work, AI solutions and innovation, customers, size and term of sales agreements, company culture, strategic priorities, partnerships, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, and GAAP and non-GAAP financial measures including gross margin and operating margin.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in our most recently filed Forms 10-K and 10-Q, as well as those that may be updated in our future filings with the SEC. These documents are available on the SEC Filings section of the Investor Relations section of our website at https://investors.atlassian.com.
About Non-GAAP Financial Measures
In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.
Our Non-GAAP Financial Measures include:
We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled “Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of GAAP to Non-GAAP Financial Targets” that present such reconciliations.
Customers with >$10,000 in Cloud ARR
We define the number of customers with Cloud ARR greater than $10,000 at the end of any particular period as the number of organizations with unique domains with an active Cloud subscription for two or more seats and greater than $10,000 in Cloud ARR.
We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260430534706/en/
Investor Relations Contact
Martin Lam
IR@atlassian.com
Media Contact
Marie-Claire Maple
press@atlassian.com
Original: Atlassian Announces Third Quarter Fiscal Year 2026 Results