Atlassian stock soared nearly 18% on Friday after the software maker offered yet another solid report card. Management continues to keep its forecasts conservative and analysts see "significant upside" for the numbers.

Late Thursday, Atlassian, the developer of the list-making tool Trello, reported adjusted earnings of 96 cents per share for its second fiscal quarter, ended Dec. 31. That compared with a consensus forecast of 75 cents among analysts tracked by FactSet. Revenue was $1.29 billion, while analysts expected $1.24 billion.

Cloud revenue, a key metric for software makers, grew 30% from a year earlier, well ahead of consensus expectations of 26%. The company is benefiting from cross-selling of additional products to its cloud users and higher average revenue per user, according to a letter to shareholders.

The big picture is consistent with the first quarter, when Atlassian also beat Wall Street's earnings and revenue estimates and delivered similar cloud-revenue growth of 31%.

Chief Financial Officer Joe Binz said that the company wants to continue offering more conservative financial guidance than in the past, given the level of uncertainty in the market. For the full fiscal year, ending in June, cloud revenue is expected to grow 26.5%, compared with an earlier forecast of 24%.

Atlassian's cloud platform is especially resonating with larger businesses, "and we see plenty of room for further progress here," wrote Arjun Bhatia of William Blair. He expects the company to raise the forecast.

Truist's Joel Fishbein cites the company's investments in artificial intelligence as a reason for future growth. While Atlassian said its AI efforts have led to a pickup in sales of premium products and to enterprises,"We believe that there is very little baked into the annual guide for AI business...AI products could drive upside in FY26," Fishbein said.

Both analysts recommend buying the stock. Fishbein raised his target for the price to $350 from $300, while William Blair doesn't issue price targets.