Shares of Atlassian Corporation PLC (TEAM) surged 31.60% in pre-market trading on Friday, after the collaborative software maker reported fiscal fourth-quarter results that significantly exceeded Wall Street expectations and provided an optimistic outlook.

The company posted adjusted earnings per share of $1.87, far above the consensus estimate of $1.50, while revenue jumped 28% year-over-year to $1.77 billion, beating the $1.66 billion forecast. Cloud revenue was a standout, rising 31% to $1.21 billion, driven by accelerating enterprise adoption of AI-powered tools. Remaining performance obligations surged 44% to $4.82 billion, signaling deepening customer commitments. Atlassian also issued first-quarter revenue guidance of $1.705 billion to $1.715 billion, ahead of the $1.67 billion consensus, and projected full-year fiscal 2027 revenue growth of approximately 13%.

Further boosting investor sentiment, CEO Mike Cannon-Brookes announced plans to purchase up to $250 million in company shares, and several analysts raised their price targets following the results. The strong earnings and guidance helped dispel recent concerns about AI disruption, reinforcing Atlassian's position as a beneficiary of enterprise AI adoption.