TEAM climbs more than 4% following strong Q3 cloud growth and bullish forecast

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Atlassian surges 4.15% today on earnings

Highlights

Atlassian's cloud revenue surged 29% year-over-year to $1.13 billion in Q3 FY26, fueled by rapid enterprise adoption and new AI-driven offerings.
Management upgraded full-year cloud revenue growth guidance to 26.5% and invested in Rocketlane for expanded automation capabilities.
The stock trades in a sideways technical range of $85.71–$95.87, with mixed momentum signals and uncertainty in near-term direction.

Forecast upgrade and AI launches boost sentiment and adoption

Atlassian posted a 29% year-over-year increase in cloud revenues for Q3 FY26, reaching over $1.13 billion as enterprise adoption accelerated and new AI features such as Rovo Dev and Teamwork Graph enhancements were launched. Management raised their full-year cloud revenue growth outlook to 26.5%. The company also invested in Rocketlane to support its automation initiatives.

Anton Kharitonov, expert at Traders Union, sees Atlassian’s short-term bounce as technically driven and not a reversal of the overarching downtrend. He notes that despite robust cloud revenue growth and headline optimism, the stock trades far below its 200-day moving average. Kharitonov highlights the divergence in momentum indicators and warns that negative MACD and overbought signals point to fragile support levels. The expert is particularly cautious about the mixed signals from oscillators and the risk of a pullback if support at $87.27 fails. "With unresolved bearish structure and conflicting technical signals, I do not believe this rally is sustainable without a clear change in long-term trend," he says.

Viktoras Karapetjanc, expert at Traders Union, highlights Atlassian’s accelerating cloud revenue and proactive innovation in AI as key bullish drivers. He sees management’s upgraded outlook and strategic partnership moves as signals that institutional confidence remains high. Karapetjanc notes that renewed investor demand points to improving sentiment, with strong corporate adoption pushing revenue to record highs. "The bullish structure remains intact on fundamentals, and I expect further upside as the company leverages enterprise AI and strengthens leadership in the cloud market," he states.

Mixed momentum as short-term support contrasts with longer-term bearishness

TEAM is trading above its 20-day and 50-day moving averages, currently at $85.73 and $86.66, but still lags behind the 200-day moving average at $115.21. This setup signals mild support for the stock in the short and medium term, while the longer-term trend remains bearish. Immediate technical focus centers on resistance at $91.11 and support at $87.27. Momentum indicators are mixed: the MACD is negative and signals strong selling pressure, while the ADX is neutral. RSI points to a buy, yet the Stochastic RSI and Bull/Bear Power show overbought conditions with buyers dominating the session. Both the Commodity Channel Index and Awesome Oscillator remain neutral, with price action in the session's mid-range and intraday volatility at 4.40%. Divergence across momentum and oscillator readings highlights persisting near-term uncertainty.

Earlier, analysts noted that Atlassian remained in a bearish trend despite brief episodes of intraday strength and technical rebounds. The latest surge in cloud revenues and a raised growth outlook adds a positive catalyst, but the longer-term outlook remains cautious, with traders advised to monitor for a decisive breakout above current resistance as the next potential signal for sustained upside momentum.

Source of Data: TEAM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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