Atlassian (NASDAQ:TEAM) Announces Earnings Results, Beats Estimates By $0.10 EPS

Atlassian (NASDAQ:TEAM) issued its earnings results on Thursday. The technology company reported $1.22 EPS for the quarter, beating the consensus estimate of $1.12 by $0.10, FiscalAI reports. Atlassian had a negative net margin of 3.38% and a negative return on equity of 7.11%. The firm’s quarterly revenue was up 23.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.96 earnings per share.

Here are the key takeaways from Atlassian’s conference call:

• Atlassian reported major financial milestones — surpassed $6B ARR, delivered its first-ever $1B cloud revenue quarter (+26% YoY), grew RPO 44% YoY to $3.8B, and nearly doubled year-over-year the number of deals >$1M ACV.
• AI is accelerating engagement and expansion — Rovo passed 5M monthly active users, customers using AI code generation show ~5% higher Jira task creation/MAU/seat expansion, and the Teamwork Collection exceeded 1M seats in under nine months.
• Management reiterated a seat-based pricing philosophy (with hybrid consumption options), saying they can manage AI costs and are seeing gross‑margin improvements, but pricing/consumption dynamics remain an area of market scrutiny.
• Atlassian reaffirmed its midterm targets (20%+ revenue CAGR and 25%+ non‑GAAP operating margin by FY27) but warned Data Center revenue will be “down meaningfully” next year, posing a near-term headwind to total revenue.
• Service Collection (JSM and related offerings) showed strong momentum — >65,000 customers, enterprise growth >60% YoY, two-thirds of customers using it for non‑IT use cases, and rising adoption of asset management and agentic workflows.

Atlassian Stock Down 6.3%

Shares of TEAM traded down $6.63 during trading hours on Thursday, reaching $98.41. The stock had a trading volume of 8,137,469 shares, compared to its average volume of 5,157,384. The firm has a 50-day simple moving average of $145.60 and a 200 day simple moving average of $159.15. Atlassian has a 12 month low of $97.93 and a 12 month high of $326.00. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $25.89 billion, a price-to-earnings ratio of -138.60, a P/E/G ratio of 16.26 and a beta of 0.88.

Atlassian News Summary

Here are the key news stories impacting Atlassian this week:

• Positive Sentiment: Company raised near‑term and full‑year revenue guidance (Q3 revenue guided ~ $1.7B vs. consensus ~$1.6B; FY26 revenue guided ~ $6.4B vs. consensus ~$6.3B), signaling resilient enterprise demand and AI-driven spend. Atlassian raises annual revenue forecast
• Positive Sentiment: Q2 results beat expectations — EPS $1.22 vs. consensus $1.12 — showing improved profitability per share even as margins remain under pressure. Atlassian (TEAM) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Atlassian is promoting AI integration via high‑profile partnerships (Williams F1 / Anthropic Claude), which supports the company’s enterprise AI story and potential product tie‑ins. Atlassian Uses Williams F1 AI Deal
• Neutral Sentiment: Marketing and brand visibility from the Williams F1 sponsorship (new livery, ads) raise the company’s profile but are unlikely to move fundamentals by themselves. Atlassian Williams F1 Team reveals bold new racing livery for 2026
• Negative Sentiment: Repeated insider selling from CEO Michael Cannon‑Brookes and co‑founder/director Scott Farquhar (multiple ~7,665‑share blocks disclosed) is creating investor concern about insider conviction and is adding near‑term selling pressure. SEC filing — CEO sale SEC filing — Director sale
• Negative Sentiment: Analysts trimmed price targets this week (e.g., Cantor Fitzgerald to $146; BMO to $135), which pressures sentiment despite some firms keeping constructive ratings. Cantor Fitzgerald price target BMO price target note
• Negative Sentiment: Broader software/AI sector volatility and recent headlines about disruptive AI offerings have made investors skittish, amplifying downside when company‑specific negatives occur. Software sector volatility from AI fears

Insiders Place Their Bets

In related news, Director Scott Farquhar sold 7,665 shares of Atlassian stock in a transaction that occurred on Thursday, November 13th. The stock was sold at an average price of $153.77, for a total transaction of $1,178,647.05. Following the transaction, the director owned 237,615 shares of the company’s stock, valued at $36,538,058.55. The trade was a 3.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Michael Cannon-Brookes sold 7,665 shares of the stock in a transaction on Thursday, November 13th. The shares were sold at an average price of $153.77, for a total value of $1,178,647.05. Following the completion of the sale, the chief executive officer directly owned 237,615 shares of the company’s stock, valued at $36,538,058.55. The trade was a 3.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 566,379 shares of company stock worth $83,662,298. Insiders own 36.66% of the company’s stock.

Institutional Trading of Atlassian

Institutional investors have recently made changes to their positions in the company. NewEdge Advisors LLC boosted its holdings in Atlassian by 71.6% during the first quarter. NewEdge Advisors LLC now owns 5,432 shares of the technology company’s stock worth $1,153,000 after purchasing an additional 2,267 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Atlassian by 39.5% in the first quarter. Empowered Funds LLC now owns 4,689 shares of the technology company’s stock valued at $995,000 after acquiring an additional 1,328 shares in the last quarter. Focus Partners Wealth grew its holdings in shares of Atlassian by 32.6% in the first quarter. Focus Partners Wealth now owns 4,122 shares of the technology company’s stock valued at $875,000 after acquiring an additional 1,014 shares in the last quarter. Geneos Wealth Management Inc. increased its position in shares of Atlassian by 447.2% during the first quarter. Geneos Wealth Management Inc. now owns 197 shares of the technology company’s stock valued at $42,000 after acquiring an additional 161 shares during the last quarter. Finally, Sivia Capital Partners LLC lifted its holdings in Atlassian by 27.5% during the second quarter. Sivia Capital Partners LLC now owns 1,873 shares of the technology company’s stock worth $380,000 after acquiring an additional 404 shares during the period. Institutional investors own 94.45% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TEAM. Macquarie lowered their target price on Atlassian from $250.00 to $240.00 and set an “outperform” rating for the company in a report on Monday, November 3rd. Truist Financial set a $210.00 target price on Atlassian in a report on Friday, October 31st. KeyCorp decreased their target price on shares of Atlassian from $250.00 to $210.00 and set an “overweight” rating for the company in a research report on Thursday, October 23rd. Citigroup cut their price target on shares of Atlassian from $240.00 to $210.00 and set a “buy” rating on the stock in a research report on Friday, January 16th. Finally, Canaccord Genuity Group reissued a “buy” rating and issued a $230.00 price objective on shares of Atlassian in a research note on Wednesday, October 22nd. Twenty equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Atlassian currently has a consensus rating of “Moderate Buy” and a consensus target price of $221.44.

Atlassian Company Profile

Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.

Atlassian’s product portfolio centers on tools designed to help teams plan, build and support software and business processes.