Summary

• Atlassian (TEAM) delivered a strong Q3 FY26, with 31.7% revenue growth, accelerating Cloud adoption, and expanding margins, sparking a sector-wide software rerating.
• TEAM’s AI-enabled Service Collection surpassed $1B ARR, with Rovo usage driving higher ARR growth among adopters across Collections.
• Despite the beat, a significant portion of Data Center growth was due to EOL-related pull-forward, raising concerns about the durability of revenue acceleration.
• Despite the beat, a significant portion of Data Center growth was due to EOL-related pull-forward, raising concerns about the durability of revenue acceleration.
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Introduction & Investment Thesis

Atlassian’s (NASDAQ:TEAM) Q3 FY26 earnings might have been the initial spark that started the sector-wide rerating in software over two weeks ago, after the industry had been under

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