Atlassian Corporation (NASDAQ:TEAM) stock rose Friday after the company reported upbeat second-quarter fiscal 2026 results.
Highlights
Atlassian reported revenue of $1.59 billion, beating analyst estimates of $1.54 billion, according to Benzinga Pro.
The collaboration and productivity software provider reported second-quarter adjusted earnings of $1.22 per share, beating analyst estimates of $1.14 per share.
Total revenue increased 23% year-over-year (Y/Y), driven by Cloud revenue growth of 26% Y/Y.
The company reported adjusted operating income of $430.2 million for the second quarter, versus $335.1 million in the prior year quarter, with an operating margin of 27% compared with 26% for the second quarter of fiscal year 2025.
Atlassian generated $177.8 million in cash flow from operations and $168.5 million in free cash flow during the period.
The company ended the quarter with $1.6 billion of cash, cash equivalents, and marketable securities.
Management Commentary
“We closed out Q2 with incredible momentum across the Atlassian platform and achieved some impressive milestones along the way. We delivered our first-ever $1 billion Cloud revenue quarter, which grew 26% year-over-year, crossed 350,000 customers, and Rovo surpassed 5 million monthly active users,” said Mike Cannon-Brookes, Atlassian’s CEO and co-founder.
Outlook
Atlassian expects fiscal third-quarter revenue to be in the range of $1.689 billion-$1.697 billion versus the street view of $1.650 billion.
Also, the company projects cloud revenue growth of around 23.0% in the quarter. Data Center revenue growth year-over-year is expected to be approximately 33.5%.
For fiscal 2026, the company raised its sales outlook from $6.300 billion to $6.362 billion, with cloud revenue growth of about 24.3%.
TEAM Price Action: Atlassian shares were up 1.12% at $99.51 during premarket trading on Friday. The stock is trading near its 52-week low of $97.93, according to Benzinga Pro data.
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