Atlassian raises annual revenue forecast on resilient software spending

Feb 5 (Reuters) - Atlassian ⁠raised its ⁠fiscal ‍2026 revenue growth forecast on Thursday, betting on strong spending ‍on its enterprise software services as clients ​increasingly incorporate artificial intelligence into their businesses.

Companies looking ​to incorporate machine learning and automate tasks have taken to Atlassian's software products, as tools such as ​Jira Service Management and Rovo help clients manage teams, track work and ​analyze data.

"We delivered our first-ever $1 billion Cloud revenue quarter, which ‌grew 26% year-over-year, crossed 350,000 customers, and Rovo surpassed 5 million monthly ​active users," Atlassian's Chief ⁠Executive Officer, Mike Cannon-Brookes, said.

Shares of the company, however, were ‌down around 8% in extended trading. Free cash flow for the second quarter fell around ‌51% to $168.5 million.

Atlassian now expects annual revenue to ‌grow around 22%, compared with its earlier growth forecast of around 20.8%.

The company forecast third-quarter revenue ‍of between $1.69 billion and $1.70 billion, compared with estimates of $1.65 billion according ⁠to data compiled by LSEG.

Revenue for the second quarter was $1.59 billion, beating estimates of $1.54 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Krishna Chandra Eluri)

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