Why Atlassian Stock Soared Today

Shares of Atlassian (TEAM +37.41%) rocketed higher on Friday after the collaboration and productivity software maker said its artificial intelligence (AI) strategy was working.

AI is a growth driver, rather than a disruptor

Ahead of its earnings report released after the market close on Thursday, Atlassian’s stock price was down 32% in 2026. Investors were worried about the threat posed by AI and the potential disruption it could cause to the software developer’s business.

Those fears were misplaced.

Atlassian’s revenue rose 28% year over year to $1.8 billion in its fiscal 2026 fourth quarter, which ended on June 30.

CEO Mike Cannon-Brookes said Atlassian’s unified data and shared intelligence layer, Teamwork Graph, is enabling its clients to enjoy more of AI’s benefits.

In the AI era, context is the edge but it’s hard to build and can’t be hired. Thanks to 25 years of connecting teams, customers get one of the best context graphs for orchestrating agentic workflows. Simply put, the Teamwork Graph helps every customer get better, faster, and cheaper results with AI.

All told, Atlassian’s adjusted net income surged 83% to $473 million. Its adjusted earnings per share, boosted by stock buybacks, soared 91% to $1.87. That was well above Wall Street’s estimates, which had called for per-share profits of $1.50.

Atlassian also generated $475 million in free cash flow, placing its FCF margin at an impressive 27%.

Management sees more AI-fueled gains ahead

For fiscal 2027, Atlassian sees revenue growing by an additional 13%.

“Enterprises view Atlassian as a long-term, strategic partner and are deepening their commitment to our open platform to securely deploy agents across their organizations with the unmatched context of the Teamwork Graph,” chief financial officer James Chuong said.