Atlassian rockets 23% after crushing earnings and flexing cloud & AI muscle

Investing.com -- Collaboration software giant Atlassian (NASDAQ:TEAM) is flying high. Shares surged a massive 23% after the company delivered a blowout fourth quarter, easily clearing Wall Street estimates and proving its aggressive push into cloud infrastructure and AI tools is paying off in a big way. The company posted adjusted earnings per share of $1.87, beating the analyst consensus of $1.50 by $0.37. Revenue reached $1.77 billion, surpassing the $1.66 billion estimate and representing a 28% increase YoY from $1.38 billion in the same quarter last year. Cloud revenue grew 31% YoY to $1.21 billion, while Data Center revenue came in at $461.9 million, above the $414.6 million estimate. Shares surged following the results as the company also issued first quarter fiscal 2027 revenue guidance of $1.705 billion to $1.715 billion, with a midpoint of $1.71 billion exceeding the analyst consensus of $1.67 billion. "Q4 closes out a year that proves our long-term strategy is paying off. Total revenue grew 28% year-over-year to $1.8 billion, Cloud revenue growth accelerated to 31% year-over-year, and our MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter," said Mike Cannon-Brookes, Atlassian's CEO and co-Founder.