Investors focused on improved profitability despite the company guiding fiscal 2027 revenue growth down to 18% from 23%.
Atlassian shares jumped over 30% after the company reported fiscal fourth-quarter results, highlighting a shift toward profitability despite a slower growth forecast. Revenue rose 28% year over year to $1.77 billion, while cloud revenue grew 31% to $1.2 billion. Remaining performance obligations surged 44% to $4.8 billion, signaling stronger future commitments.
The company’s operating income reached $211 million, a 12% margin, compared with a $28 million loss in the same period last year. Net income was $139 million, or $0.55 per diluted share. Analysts had anticipated continued losses, making the profit turnaround a key driver of the stock’s rally.
Atlassian guided fiscal 2027 subscription annual recurring revenue growth to 18%, down from 23% in the prior year. However, investors prioritized the company’s improving margins over the decelerating growth outlook, fueling the stock’s gains.