Atlassian Shares Jump Over 28% After Q3 Earnings Beat Wall Street Expectations

Atlassian shares surged more than 28% on Friday following the company's fiscal third-quarter earnings report that exceeded Wall Street expectations. 32 anticipated by analysts, according to LSEG data cited by CNBC. 69 billion.

The results marked a turnaround for Atlassian, whose shares had declined more than 45% year to date in 2026. CNBC reported that the company's revenue grew 32% year over year in the quarter. 08 billion forecast by FactSet analysts.

Data center revenue also outperformed, coming in at $561 million against an expectation of $515 million. 5%. These figures reflect continued expansion in the company's core offerings despite industry headwinds.

Atlassian CEO Mike Cannon-Brookes told CNBC that the company saw incredible strength in its business during the third quarter. He stated that concerns plaguing the broader software sector may be overblown. In the interview, Cannon-Brookes said jobs numbers are continually strong in areas that people have worried about.

Cannon-Brookes added that those fears are not playing out in Atlassian's numbers in terms of how customers continue to expand the use of its software. The CEO gave the interview on Thursday to CNBC's Closing Bell: Overtime. His comments came amid a sector-wide sell-off, but Atlassian's metrics indicated resilience.

Earlier in March 2026, Atlassian laid off about 10% of its workforce, affecting roughly 1,600 jobs. The company described the move as a way to fund investments in areas like artificial intelligence and enterprise sales. CNBC reported that software executives have noted core business metrics remain stable despite external pressures.

Analysts at BTIG, as cited by CNBC, pointed to Atlassian's Teamwork Collection as a significant growth driver, with customers upgrading for more AI credits. The firm noted that the results position Atlassian to leverage AI as a competitive edge. This perspective aligns with the company's boosted guidance for the year.

The third-quarter performance ended on March 31, 2026, highlighting Atlassian's ability to drive revenue through cloud and data center expansions. Wall Street's expectations, drawn from LSEG and FactSet, were consistently outperformed across key metrics. The stock's Friday gain provided a counterpoint to the year's earlier declines.