The stock jumped 35.31% after the earnings call, though the stock is still down about 8% for the year, while Wall Street remains firmly bullish. Of 22 analysts covering Atlassian, 20 rate the stock a Buy and two rate it a Hold, with no Sell ratings.
The reaction is notable because software companies have spent much of the AI boom facing an uncomfortable question: What happens to traditional software when AI agents can write code, summarize documents, manage projects, and complete tasks without users opening half a dozen applications?
Atlassian’s results suggest the answer may depend heavily on what kind of software a company owns.
AI Is Fueling Atlassian’s Enterprise Growth
Atlassian ended the quarter with remaining performance obligations up 44% to $4.8 billion and net revenue retention above 120%. Large customers are also expanding quickly. Atlassian said the number of customers generating more than $3 million in annual recurring revenue grew about 50% year-over-year, while customers above $5 million grew about 70%.
