Atlassian delivered a Q3 performance that far surpassed investor expectations, with shares surging 26.1% post-earnings. The upside was driven by accelerating cloud revenue, robust enterprise momentum, and continued strength in AI adoption.

• Total revenue rose 32% year-over-year to $1.8 billion.
• Cloud revenue accelerated to 29% year-over-year growth, topping $1.1 billion.
• Remaining Performance Obligations (RPO) grew 37% to $4 billion, reflecting solid forward demand.
• AI adoption continues to expand rapidly; usage of Rovo AI credits is growing over 20% month-over-month, and customers deploying Rovo are growing ARR at roughly twice the rate of non-Rovo customers.
• Management acknowledged data center outperformance this quarter was boosted by some deal pull-forward, with an indication of possible moderation in that segment for FY '27.