Atlassian (TEAM.O) shares jumped 20% in extended trading Thursday after the Nasdaq-listed software company reported its first quarterly operating profit in more than two years.
The result signals a decisive shift in investor sentiment, as the company demonstrates it can generate revenue from artificial intelligence tools without eroding margins.
The market reaction underscores a broader reassessment of enterprise software valuations.
Investors have long feared that AI integration would require heavy spending with uncertain returns.
Atlassian’s ability to use AI as an upsell tool for existing customers has alleviated those concerns, proving the technology can drive immediate revenue growth rather than just cost inflation.
This development aligns with a wider trend in the tech sector.