Atlassian shares jumped more than 35% Friday after the Australian software company blew past Wall Street’s expectations for its fiscal fourth quarter, and the numbers behind that spike tell a story analysts hadn’t fully priced in.
For the quarter ending June 30, Atlassian posted adjusted earnings of $1.87 per share, nearly double the 98 cents it reported a year earlier. Revenue hit $1.766 billion, up 28% year-over-year. Analysts had expected earnings closer to $1.50 per share on revenue around $1.66 billion, so the beat wasn’t marginal.
Cloud revenue carried most of the excitement, jumping 31% to $1.213 billion. That figure lands differently when you consider where Atlassian had been heading. Cloud growth had been losing steam throughout fiscal 2026, enough that the company guided toward just 23% growth as recently as February. This quarter snapped that trend instead of extending it.
The company also crossed into profitability on an unadjusted basis, something it hadn’t managed the year before. Operating income came in at $211 million, compared to a $28 million operating loss a year earlier, while net income reached $139 million, up from a $24 million net loss. Free cash flow for the quarter totaled $475 million.
Beyond the raw numbers, Atlassian pointed to growing AI tool adoption as a signal of where the business is heading. Usage of its Model Context Protocol server and Teamwork Graph tool more than doubled during the quarter, surpassing 1 million monthly active users, while calls to the MCP server jumped over 400% from the prior quarter. More than 80% of Fortune 500 companies now use Rovo, the company’s AI assistant.
CEO Mike Cannon-Brookes framed the company’s advantage around context rather than raw AI capability, arguing that decades of connecting teams gives Atlassian a head start in orchestrating AI-driven workflows that newer competitors can’t easily replicate.
Looking ahead, Atlassian guided first-quarter revenue to between $1.705 billion and $1.715 billion, above the roughly $1.665 billion analysts had projected. For fiscal 2027, the company expects overall revenue growth near 13%, with cloud revenue growth projected at 25.5%.
Alongside the results, Cannon-Brookes disclosed plans to personally buy up to $250 million in Atlassian stock, and the company named Ken Exner, formerly of AWS and Elastic, as its new chief product officer for enterprise and emerging products.
