Atlassian (NASDAQ:TEAM) shares jumped about 22% in after-hours trading following stronger-than-expected fiscal third quarter results and an upward revision to its full-year revenue outlook. For fiscal 2026, the company raised its total revenue growth forecast to approximately 24%, up from a prior outlook of 22%.
Atlassian reported third-quarter results that beat expectations, with strong cloud growth and data center revenue. The company's stock has been hit hard in the "SaaS-pocalypse" that has hit software names this year as AI threatens their business models.
Atlassian, Twilio, and Five9 shares soar premarket as AI boosts their earnings. All three companies have previously been cited as victims of the so-called SaaSpocalypse.
Atlassian Corporation (TEAM) Q3 2026 Earnings Call Transcript
Although the revenue and EPS for Atlassian (TEAM) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Atlassian (TEAM) came out with quarterly earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $0.97 per share a year ago.
Beyond analysts' top-and-bottom-line estimates for Atlassian (TEAM), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2026.
Atlassian stock price has slumped this year and is now hovering at its lowest level since November 2018. It was trading at $69, down from the record high of $483, with, the market cap falling from over $110 billion to $18 billion today.
BTIG lowered its price target on Atlassian (NASDAQ:TEAM | TEAM Price Prediction) to $110 from $140 while maintaining a Buy rating ahead of Q3 FY2026 results due Thursday.
I rate Atlassian Corporation a Strong Buy, with a price target of at least $100 by the end of 2026 and a possible shift in sentiment this week already. TEAM demonstrates robust fundamentals: 23% YoY revenue growth, accelerating cloud adoption, and improving GAAP and non-GAAP margins. AI integration is a tailwind, not a threat, evidenced by strong product adoption, especially Rovo, and rising enterprise ARR.
Cantor Fitzgerald analyst Thomas Blakey lowered the firm's price target on Atlassian (NASDAQ:TEAM | TEAM Price Prediction) to $98 from $146 and kept an Overweight rating on the shares.
Abacus FCF Advisors LLC lowered its holdings in shares of Atlassian Corporation PLC (NASDAQ: TEAM) by 47.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 51,443 shares of the technology company's stock after selling 46,284 shares