Atlassian forecasts second-quarter revenue above estimates on AI demand boost

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

Atlassian forecast second-quarter revenue above estimates on Thursday, betting on strong demand for its enterprise software services as businesses upgrade to integrate artificial intelligence, sending its shares up nearly 7 per cent in extended trading.

Businesses rushing to adopt AI are increasingly leveling up their systems to incorporate the data-intensive tech, helping drive demand for Atlassian's enterprise software services.

Atlassian expects revenue of between $1.535 billion and $1.54 billion in the second quarter, compared with analysts' average estimate of $1.51 billion, according to data compiled by LSEG.

Atlassian also announced that its finance chief Joe Binz will retire, effective June 30, 2026, and the company has commenced a search for its next CFO.

Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.


This service is not intended for persons residing in the E.U. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp’s partners.
Loading

The company has been looking to improve cross-selling across its portfolio of products and is working to drive demand through its own AI products such as its Rovo Dev coding agent.

Atlassian's collaboration tools - such as Jira software for planning and project management and Confluence for content creation — serve over 300,000 customers.

It expects cloud revenue to grow about 22.5 per cent in the second quarter.

However, Atlassian's revenue stood at $1.37 billion for the three months ended September 30, compared with analysts' average estimate of $1.40 billion, according to data compiled by LSEG. 

Its first-quarter adjusted profit stood at $1.04 per share, compared with the estimates of 84 cents.

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here