Atlassian stock surged on Friday after the software maker reported fiscal second quarter earnings and revenue that topped Wall Street targets amid its shift to a subscription, cloud-based business model. Revenue guidance came in above views.
Reported after the market close on Thursday, Atlassian earnings for the December quarter rose 31% to 96 cents a share on an adjusted basis.
Further, revenue climbed 21% to $1.286 billion.
"Atlassian delivered solid fiscal second-quarter results as cloud revenue grew 30% year-over-year, well ahead of consensus expectations of 26%," said Arjun Bhatia, analyst at William Blair in a report. "Drivers of upside include better-than-expected paid seat expansion, migrations, and marginally better cross-sell."
Wall Street analysts polled by FactSet had projected adjusted profit of 75 cents on revenue of $1.24 billion
On the stock market today, Atlassian jumped 20% to near 323 in early trading.
Heading into the Atlassian earnings report, TEAM stock had gained 8% in 2025 but only 2% over the last 52 weeks.
For the March quarter, Atlassian said it expects total revenue in a range of $1.345 billion to $1.353 billion versus estimates of $1.31 billion. Atlassian said it expects cloud growth of 24% in the March quarter,
Founded in Sydney in 2002, Atlassian sells project management and collaborative software for software developers and information technology engineering teams.
The software maker is transitioning to a cloud-computing business model. In addition, Atlassian is phasing out sales of on-premise software used in the data centers of corporate customers.
Meanwhile, Atlassian stock has forged a deep cup base and holds an entry point of 287.97, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
