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Software stock market crash comes amid AI fears, but is software really dying?

The Australian Financial Review

ENRICHED

Details

Date Published
12 Apr 2026
Priority Score
2
Australian
Yes
Created
15 Apr 2026, 12:00 pm

Authors (1)

Description

The share price fall exposes a disconnect between what customers are doing right now and what speculators think will happen in a future they’re guessing at.

Summary

This analysis examines the financial market's volatility regarding traditional software firms like Atlassian in the wake of advancing generative AI capabilities. Speculative fears suggest that AI might cannibalize the market for existing enterprise tools, yet fundamental business metrics show continued growth in cloud revenue and long-term contract commitments. The piece highlights the tension between current 'frontier' AI hype and the practical implementation of governance and safety within institutional software ecosystems. Ultimately, it underscores the market's attempt to price in the disruptive potential of OpenAI and Anthropic against established Australian technology giants.

Body

TechnologySoftwarePrint articleApr 13, 2026 – 7.50amIn February, Atlassian posted $1.6 billion in revenue, up 23 per cent year-on-year. Cloud revenue climbed 26 per cent, marking its first $1 billion quarter.Remaining performance obligations jumped 44 per cent, indicating customers were signing longer contracts and committing more money over more years. More than 600 customers pay over $1 million in annual recurring revenue, a cohort that is growing at roughly 40 per cent.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreSoftwareOpinionAtlassianAIMike Cannon-BrookesMicrosoftOpenAIAnthropicFetching latest articles