AI has not only failed to replace traditional roles, but has instead become a catalyst! Atlassian (TEAM.US) saw a staggering 28% increase in revenue, with record-breaking large orders and over a million monthly active users boosting its stock price.

Atlassian (TEAM.US) has dispelled the "AI replacement" shadow hanging over this collaboration software developer with an impressive financial report. For the fourth quarter of the 2026 fiscal year ending June 30, Atlassian's adjusted earnings per share reached $1.87, significantly surpassing the analysts' average expectation of $1.50; total revenue surged 28% year-on-year to $1.77 billion, notably exceeding the market expectation of $1.66 billion. The core driver of this impressive financial report is the transformation to cloud services. Revenue from cloud business reached $1.21 billion for the quarter, with year-on-year growth accelerating to 31%, making it the strongest engine for overall revenue growth. Meanwhile, revenue from the data center business recorded $461.9 million, also topping analysts' estimates of $414.6 million. In terms of earnings quality and future reserves, the company is also showing strong momentum. The adjusted operating profit margin for the quarter expanded significantly from 24% in the same period last year to 36%. By the end of the quarter, annual recurring revenue (ARR) from subscriptions grew by 23% to $6.61 billion; as a pool for measuring future income, remaining performance obligations (RPO) skyrocketed 44% year-on-year to $4.82 billion. Following the performance release, the companys stock price surged by as much as 39% in after-hours trading on Thursday Eastern Time. If this gain holds into regular trading, it would mark the largest single-day increase since the company went public in 2015, boosting its market value by over $10 billion. By late-night trading, the stock price was up approximately 32%. Record Corporate Deals, Doubling AI Product Active Users This surge in stock price is indeed a welcome relief for Atlassian. Prior to the financial report, the company's stock had declined about 32% so far this year, and the drop over the past 12 months reached 35.6%, largely due to the market's deep fear of the "SaaSpocalypse" (the notion that artificial intelligence will completely disrupt the business models of software service providers). This financial report demonstrates that Atlassian has not only avoided being marginalized by AI but is also leveraging its AI capabilities and cloud barriers to build a deeper competitive moat, successfully retaining global enterprise clients who are experiencing the growing pains of AI transformation. Atlassian co-founder and CEO Mike Cannon-Brookes stated in a shareholder letter that customers are "voting with their wallets," doubling down on Atlassian by signing larger, longer-term contracts. The financial data shows that this quarter, Atlassian signed its largest enterprise-level deal in company history with one of the world's largest consumer technology companies. Among high-end clients, the number of transactions with annual contract values exceeding $1 million, $3 million, and $5 million all set quarterly records. Notably, the number of clients with annual contract values over $3 million grew by more than 50% year-on-year, while the increase for clients over $5 million was an astonishing 70%. In the highly watched AI field, Atlassian has also showcased its capabilities. Cannon-Brookes revealed that active monthly users of AI tools such as the MCP server and Teamwork Graph CLI have surpassed 1 million, more than doubling from the previous quarter. This indicates that Atlassian's strategy of deeply integrating AI into its core products (such as Jira, Confluence, and Trello) has begun to garner widespread recognition from developers and enterprise users. Cannon-Brookes remarked, "The fourth quarter once again delivered outstanding results, rounding off an exceptional fiscal year. We are fully focused on our three strategic priorities: enterprise business, AI, and work systems, while achieving sustainable profit growth." Looking ahead, Atlassian has a positive outlook for the upcoming new fiscal year. For the first quarter of the 2027 fiscal year, the company expects revenue to range between $1.705 billion and $1.715 billion, with the midpoint of this range easily exceeding analysts' expectations of $1.67 billion. For the entire 2027 fiscal year, management anticipates total revenue to grow by approximately 13%, with cloud business revenue expected to continue its strong trajectory, achieving around 25.5% growth; meanwhile, with customers continuing to migrate to the cloud, data center business revenue is expected to decline by about 17%. Annual subscription ARR is projected to grow by about 18%. To further demonstrate its strong confidence in the company's long-term value, CEO Mike Cannon-Brookes, whose net worth is $8.4 billion, announced plans to purchase up to $250 million of company stock in the open market.