Atlassian Corporation reported strong financial results for the second quarter of fiscal year 2025, significantly surpassing market expectations. The company achieved revenue of $1.29 billion, a 21% year-over-year increase, exceeding the consensus estimate of $1.24 billion. Adjusted earnings per share (EPS) were $0.96, outperforming the expected $0.76. Subscription revenue grew 30% year-over-year to $1.21 billion, representing 94% of total revenue. Atlassian also reported a non-GAAP operating margin of 26%, up from 24% in the prior year. The company’s cloud revenue increased by 30% year-over-year, while data center revenue rose 32%. Net income for the quarter was $255.6 million, and the gross margin stood at 82.8%. Additionally, the number of customers generating over $10,000 in cloud annualized recurring revenue (ARR) grew to 49,449, up 15% year-over-year. For the third quarter, Atlassian forecasts revenue between $1.345 billion and $1.353 billion, above market expectations. For fiscal year 2025, the company projects revenue growth of 18.5% to 19% and cloud revenue growth of 26.5%. Atlassian attributed its performance to robust cloud adoption, advancements in AI integration, and strategic partnerships, including an expanded collaboration with Amazon Web Services. The company’s stock surged 20% in after-hours trading following the announcement.