Atlassian reported Q2 FY2026 results on February 5, 2026, exceeding market expectations. Revenue reached $1.59 billion, reflecting 23.3% year-over-year growth and a 2.8% beat. Adjusted earnings per share stood at $1.22, surpassing estimates by 6.6%. Cloud revenue hit $1.1 billion, marking the first time the segment has exceeded $1 billion in a single quarter. Remaining performance obligations grew 44% to $3.8 billion.
Atlassian issued Q1 CY2026 revenue guidance with a $1.69 billion midpoint. This outlook is 2.9% above analyst projections. Despite the financial performance, shares fell 9.34% to $89.22 in after-hours trading. The stock had already closed the February 5 regular session down 6.31% at $98.41. Immediately following the earnings announcement, shares traded as low as $90.05, representing a 9.7% decline.
The downward movement reflects broader SaaS sector pressure driven by AI disruption fears, often termed the SaaSpocalypse. This sell-off aligned with a 2.09% drop in the Nasdaq. Investor sentiment was further impacted by high AI capital expenditure concerns at industry peers such as Amazon and Google.