Atlassian Stock Soars 20% Following Strong Earnings and Upgraded Revenue Outlook

The software company exceeded Wall Street expectations, driven by AI-powered cloud growth and improved guidance.

Atlassian reported fiscal Q2 adjusted earnings of $0.96 per share, surpassing analysts' estimates of $0.76, with revenues of $1.29 billion exceeding the $1.24 billion forecast.
The company raised its Q3 revenue guidance to $1.35 billion, above the consensus estimate of $1.31 billion, citing strong demand for its AI-driven cloud and data center solutions.
Shares surged 20%, reaching a 52-week high of $324, as investors responded to the company's 30% subscription revenue growth and optimistic outlook.
Wall Street analysts swiftly raised their price targets, with several projecting values between $330 and $400 based on Atlassian's performance and growth trajectory.
Key drivers of Atlassian's success include its AI-powered collaboration tools and enterprise-focused strategies, which have bolstered cloud growth by 26.5% and data center growth by 21.5% year-over-year.