Atlassian Shares Surge After Strong Earnings and Raised Revenue Forecast

The software company exceeded expectations with its Q1 2025 earnings and anticipates significant growth driven by AI and cloud services.

Atlassian reported a first-quarter EPS of $0.77, surpassing analyst expectations of $0.64, with revenues reaching $1.19 billion.
The company projects full-year revenue growth of 16.5% to 17%, driven by a 33% increase in subscription revenue.
Atlassian's cloud revenue grew by 31%, reflecting strong demand for its AI-driven offerings and enterprise cloud solutions.
A new $1.5 billion share repurchase program was authorized, following the completion of a previous $1 billion program.
Atlassian's stock rose by approximately 17%, reaching multimonth highs, although it remains down 7% for the year.