Atlassian Shares Rise 23% After Q3 Beat, Raised Outlook

Atlassian Corporation's shares surged more than 23 percent in premarket trading Friday, climbing above $84 from a previous close of $68.59, after the company reported fiscal third-quarter results that exceeded Wall Street expectations and raised its full-year revenue growth outlook.

For the quarter ended March 31, 2026, Atlassian posted revenue of $1.787 billion, up 32 percent from the prior year and topping the $1.696 billion forecast. Non-GAAP earnings per share reached $1.75, surpassing the $1.33 estimate. Cloud revenue grew 29 percent year-over-year, outperforming consensus by 4.5 percentage points and accelerating from 26 percent in the prior quarter. The Service Collection, centered on Jira Service Management, surpassed $1 billion in annual recurring revenue, up more than 30 percent, with 75 percent of Fortune 500 companies as customers. Remaining performance obligations rose 37 percent to $4 billion.

Chief Executive Officer Mike Cannon-Brookes attributed the results to customers signing larger, longer-term agreements on the company's AI-powered platform. "Our strong Q3 results show the power of our strategy in action," he said, highlighting AI features like Rovo, whose...