Why Atlassian Stock Jumped to a 2-Year High Today

Core Viewpoint - Atlassian's stock surged to a two-year high following strong financial results for Q2 2025, driven by significant contract wins and better-than-expected revenue performance [1][2]. Financial Performance - Atlassian reported Q2 revenue of $1.286 billion, exceeding its guidance of $1.241 billion [2]. - The company has increased its full-year revenue growth guidance to 18.5% to 19%, up from the previous guidance of 16.5% to 17% [4]. Customer Growth - The number of subscription customers spending at least $10,000 annually increased by 15% year over year [3]. - Atlassian achieved a record number of deals valued at $1 million or more annually [3]. Investment Strategy - The company maintains a philosophy of heavy investment in research and development (R&D), typically spending over 40% of its revenue on R&D, and sometimes exceeding 50% [5]. - Despite not being profitable, this strategy is viewed positively by investors as it supports growth [6]. Future Outlook - Atlassian surpassed $5 billion in annualized subscription revenue in Q2 and aims to reach $10 billion within three years at its current growth rate for cloud revenue [7].