Shares in billionaire Mike Cannon-Brookes’ software company have surged after a record quarter for the US-Australian firm quelled fears about AI’s impact on its business model.
Atlassian’s Nasdaq-listed shares were up 32 per cent to $US146.21 in after-hours trading on Friday, their best level since January.
Since then, the valuations of many software-as-a-service companies including Atlassian and ASX-listed Xero and US firms such as Adobe, Salesforce and HubSpot have tanked in what Wall Street dubbed the “SaaSpocalypse”.
The January 12 launch of Anthropic’s powerful Claude Cowork platform led some investors to conclude sophisticated AI agents would replace costly software services such as Atlassian’s flagship Jira platform, which is used by engineering teams to collaborate on software development.
However, Atlassian reported overnight that during the June quarter, it broke internal records for multimillion-dollar deals, including the largest enterprise deal in company history with a big consumer technology business.
Atlassian’s overall revenue grew 28 per cent to $US1.8 billion in the fourth quarter, coming in at $US6.6 billion for the year.
“Simply put, we had an outstanding quarter to cap an outstanding year,” Mr Cannon-Brooke told investors.
Atlassian also swung to a $139 million profit for the June quarter following a $US24 million loss a year ago.
For 2025/26, Atlassian lost $US54 million, down from a $257 million net loss the previous financial year.
Mr Cannon-Brooke said the year proved Atlassian’s long-term strategy was paying off.
“I do believe AI is the best thing that’s ever happened to Atlassian, and we will continue to show that every quarter with our results,” he said.
Enterprises view Atlassian as a long-term strategic partner and are using its open platform to deploy AI agents across their organisations, Atlassian chief financial officer James Chuong said.
Mr Cannon‑Brookes also announced overnight he would buy up to $US250 million in Atlassian shares, which trade under the TEAM ticker on the Nasdaq.
He already owns 47 million Atlassian shares, worth about $US 6.9 billion ($A9.8 billion) based on the company’s after-hours share price.
Atlassian declared in March it would lay off 10 per cent of its workforce because the increasing adoption of AI was reshaping the skills it needed.
About 1600 employees globally lost their jobs, including almost 500 in Australia.
Atlassian’s $1.4 billion headquarters under construction next to Sydney’s Central Station reached its full height of 39 storeys in July and is expected to be completed in 2027.
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