Atlassian Corporation PLC shares skyrocketed 36.27% in pre-market trading on Friday, as investors cheered blockbuster fiscal fourth-quarter results that blew past Wall Street forecasts and an optimistic outlook that eased fears of AI-driven disruption in the software sector.

The company reported adjusted earnings per share of $1.87, smashing the consensus estimate of $1.50 by 24.67% and surging 90.82% year-over-year. Revenue jumped 28% to $1.77 billion, easily exceeding the $1.66 billion analysts had expected. Cloud revenue was a standout performer, accelerating to 31% growth and reaching $1.21 billion, fueled by strong enterprise adoption of AI-powered tools. The company also guided first-quarter revenue to $1.705 billion to $1.715 billion, well above the $1.67 billion consensus, and projected full-year fiscal 2027 revenue growth of approximately 13%.

The blockbuster quarter triggered a wave of analyst price-target increases, with multiple brokerages—including UBS, BofA, BMO, Oppenheimer, Jefferies, and Raymond James—raising their targets significantly. Notably, the results helped dispel lingering concerns that AI platforms like OpenAI's Presence service could disrupt Atlassian's traditional enterprise software business. Instead, the company demonstrated that AI is acting as a catalyst, with AI tools surpassing one million monthly active users and integrations like Claude Code and Cursor being embedded into Jira's AI-native development capabilities.