Atlassian reported revenue of $1.59 billion for the second quarter of fiscal 2026. The company achieved adjusted earnings per share of $1.22. Both figures surpassed analyst expectations. Cloud services generated over $1 billion in revenue for the first time in a single quarter. Management attributed this performance to the accelerated adoption of artificial intelligence features.
Atlassian shares fell more than 18% following the report. The company recorded a net loss of $42.6 million for the period. This loss reflects a strategic prioritization of cloud and AI investments over short-term profitability. A broader sell-off in the U.S. software sector also pressured the stock price.