Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDanny Vena, CPA, The Motley FoolSat, September 5, 2026 at 9:22 AM GMT+2 4 min readShares of Atlassian (NASDAQ:TEAM) skyrocketed in August, gaining 92.2%, according to data supplied by S&P Global Market Intelligence. That's orders of magnitude higher than the 2.6% gains of the S&P 500.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »The enterprise software specialist helped dispel the popular narrative that artificial intelligence (AI) would eliminate the need for its popular software-as-a-service (SaaS) offerings, sending the stock on a blistering rebound.Image source: Getty Images.Atlassian helped calm shareholder fears when the company reported financial results that far exceeded expectations and offered robust guidance for the coming year. Strong demand for Atlassian's workplace collaboration software -- which includes Trello, Jira, and Confluence -- put a nail in the SaaS-pocalypse once and for all.For Atlassian's fiscal 2026 fourth quarter (ended June 30), the company generated revenue that grew 28% year over year to $1.77 million. Expanding operating margins drove profitability higher, as adjusted earnings per share (EPS) soared 98% to $1.87.For context, analysts' consensus estimates called for revenue of $1.66 billion and EPS of $1.50, so to say Atlassian beat expectations was an understatement.The results were driven by strength across the company's business. Cloud revenue grew 31% to $1.2 billion. Subscription annual recurring revenue (ARR) rose 23% to $6.6 billion, putting a floor under the company's future results. Moreover, Atlassian's remaining performance obligation (RPO) -- or contractually obligated revenue that hasn't yet been recognized -- jumped 44% to $4.8 billion. This provides insight into the company's future trajectory, which looks decidedly positive.Atlassian also reported an all-time record quarter for deals worth $1 million, $3 million, and $5 million or more in annual contract value (ACV). In fact, ARR from $3 million customers grew more than 50% year over year, while $5 million deals jumped 70%.While some investors feared AI would scuttle Atlassian's progress, it actually accelerated it. The company's Rovo AI helps customers find information, interact with data, and automate workflows, and customers are adopting the tool at a brisk pace. Rovo-assisted actions surged 50% quarter over quarter, with Rovo users completing 20% more work items in Jira than non-users, while also creating or editing 25% more Confluence pages than non-users. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info