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Atlassian Surges on AI Spending, Beats Revenue Estimates
6 Feb
Summary
- Fiscal 2026 revenue growth forecast raised by Atlassian.
- Cloud revenue reached $1 billion, growing 26% year-over-year.
- Second-quarter revenue was $1.59 billion, surpassing estimates.
Atlassian anticipates continued strong performance in fiscal 2026, raising its revenue growth forecast. This optimism stems from increasing enterprise adoption of artificial intelligence, which is driving demand for the company's software services.
Tools like Jira Service Management and Rovo are instrumental in helping businesses manage teams, track work, and automate tasks with machine learning. This has contributed to Atlassian achieving a milestone $1 billion in cloud revenue for the quarter, marking a 26% year-over-year increase. The company also reported over 350,000 customers and Rovo exceeding 5 million monthly active users.
Despite the positive revenue trajectory and product adoption, Atlassian's stock experienced an 8% drop in extended trading. This downturn was attributed to a substantial 51% decrease in free cash flow for the second quarter, falling to $168.5 million.
For the upcoming third quarter, Atlassian projects revenue between $1.69 billion and $1.70 billion, surpassing analysts' estimates. The reported second-quarter revenue of $1.59 billion also exceeded the anticipated $1.54 billion, underscoring the company's ability to outperform market expectations in terms of overall revenue.
