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Investing.com — Atlassian (NASDAQ: TEAM) rose 33% in early trading on Friday after the enterprise software maker posted fiscal fourth-quarter revenue of $1.77 billion, a 28% year-over-year gain that blew past the analyst consensus of $1.66 billion by 6.4%.
The results carry implications well beyond Atlassian itself. Enterprise software stocks have been among the year’s hardest-hit groups on fears that AI would displace traditional collaboration and productivity tools, and TEAM’s print is now being read as a sector-wide inflection point, potentially benefiting direct peers such as Datadog (NASDAQ: DDOG) and Snowflake (NASDAQ: SNOW), both cited by analysts as comparable re-rating candidates.
Adjusted EPS came in at $1.87 against a $1.50 consensus, a 24.7% beat. Cloud revenue rose 31% year-over-year to $1.21 billion and now represents 68.7% of total revenue, up from 67.0% a year earlier, per data cited by ts2.tech. Remaining performance obligations grew 44% year-over-year to $4.8 billion, giving the company substantial forward revenue visibility. The quarter also marked Atlassian’s first GAAP operating profit in over two years, at a 12% margin.
The Rovo AI product is emerging as the clearest proof point. Used by more than 80% of Fortune 500 companies, Rovo-assisted actions grew 50% quarter-over-quarter, and Rovo users completed 20% more Jira tasks and generated 25% more Confluence pages than non-users. CEO Mike Cannon-Brookes framed the product’s edge simply, saying “in the AI era, context is the edge.”
Cannon-Brookes added a personal signal of conviction: he committed to buying up to $250 million of Atlassian shares.
Following the results, Bank of America upgraded TEAM to Buy from Neutral and raised its price target to $175 from $105, a 67% increase, saying Atlassian had become “an AI beneficiary rather than AI victim.” The bank specifically flagged the company’s Teamwork Graph as a differentiated AI asset that competitors would struggle to replicate quickly.
Jordan Klein, a TMT specialist at Mizuho, was equally emphatic in a note. “TEAM would be my GAME CHANGER stock of the day and key name to watch,” he wrote. “28% rev growth crushed Street at 20%, core Cloud growth accelerated, and the big risk of initial FY27 growth guide now defanged and was better. Best yet is CEO buying $250M of stock, and new AI related products gaining serious traction. WHY I THINK STOCK GETS CHASED & GOES HIGHER: its still super cheap for the growth: 5x EV/Sales even up 33% and 16x EV/FCF.”
