Software stocks powered a broad market rally on Friday, with Atlassian surging 30% after posting strong earnings and a CEO commitment to purchase $250 million in shares.
Atlassian reported fiscal fourth-quarter revenue of $1.38 billion, up 28% year-over-year, and swung to a net profit of $139 million from a year-ago loss. Subscription annual recurring revenue reached $6.6 billion, up 23%, while remaining performance obligations jumped 44% to $4.82 billion. For Q1 fiscal 2027, the company guided revenue of $1.705–$1.715 billion, easily topping the $1.67 billion consensus. CEO Mike Cannon-Brookes said he will buy $250 million of the stock on the open market, a move often seen as a strong insider signal. The stock closed at $110 before earnings and soared to $144.52 in extended trading, breaking above key resistance at $119.27 and on the verge of a golden cross pattern. Analysts see a potential run toward $175.
Other major movers included Cloudflare, up 16% after Q2 revenue rose 36% to $696.1 million and full-year guidance was raised to $2.86–$2.87 billion. Twilio gained 16% as its dollar-based net expansion rate hit 116% (vs. 110% expected) and it lifted 2026 adjusted operating income guidance. Airbnb added 8% on Q2 revenue of $3.6 billion (up 17%) and a raised full-year outlook, with adjusted EBITDA margin seen at least 35.5%. Akamai climbed 15% and JFrog 19% after earnings beats.
On the downside, The Trade Desk plunged 27% after missing Q2 revenue ($715M vs. $751.4M expected) and EPS, though customer retention remained above 95%. Sezzle dropped 23% despite beating forecasts, as investors focused on rising operating expenses. DoubleVerify leapt 14% on news of a $2.1 billion cash acquisition by Nielsen.
The moves came ahead of the July nonfarm payrolls report, which traders eyed for clues on Federal Reserve rate decisions later in 2026. The broad equity rally, however, had no direct impact on cryptocurrency markets.
