Atlassian Corporation - Class A
Q4 2026 Earnings
Market Reaction
Did TEAM Beat Earnings? Q4 2026 Results
Atlassian Corp delivered a strong finish to fiscal 2026, reporting Q4 revenue of $1.77 billion, up 27.6% year-over-year, while adjusted non-GAAP EPS of $1.87 marked the company's fifth consecutive quarter of beating consensus estimates. The primary engine behind the quarter's momentum was Cloud revenue, which accelerated to 31% growth, complemented by a meaningful improvement in profitability as non-GAAP operating margin expanded to 36% from 24% a year earlier, reflecting infrastructure optimization and improved operating leverage following a restructuring earlier in the year. Atlassian's AI push also gained measurable traction, with Rovo now deployed across more than 80% of Fortune 500 companies and Rovo adopters growing ARR at twice the rate of non-adopters. Looking ahead, management guided full-year FY27 total revenue growth of approximately 13%, a deliberate deceleration as Data Center revenue is expected to decline roughly 17% while lapping pull-forward demand tied to a September 2025 end-of-life announcement, with Cloud growth of approximately 25.5% expected to carry the business forward until growth re-accelerates in FY28.
- Cloud revenue growth accelerated to 31% y/y, fueled by strong seat expansion in core Jira and Confluence and cross-sell momentum with Service Collection and Teamwork Collection
- Data Center revenue grew 21% y/y driven by greater upfront term license revenue recognition following DC EOL announcement and strong customer retention
- Record quarter for $1M+, $3M+, and $5M+ ACV enterprise deals
- Rovo adoption driving platform engagement with over 80% of Fortune 500 companies using Rovo
- Operational discipline with GAAP operating margin improvement of 14 ppts y/y and non-GAAP operating margin improvement of 12 ppts y/y
- Gross margin expansion driven by infrastructure optimization and customer support efficiency
“Q4 closes out a year that proves our long-term strategy is paying off. Total revenue grew 28% year-over-year to $1.8 billion, Cloud revenue growth accelerated to 31% year-over-year, and our MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter.”
Atlassian CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY27, Atlassian expects total revenue of $1,705-$1,715 million, Cloud revenue growth of approximately 28.5% y/y, Data Center revenue decline of approximately (4.0%) y/y, Marketplace and other revenue growth of approximately 12.5%, GAAP gross margin of approximately 85.0%, non-GAAP gross margin of approximately 87.0%, GAAP operating margin of approximately 6.5%, and non-GAAP operating margin of approximately 28.5%. For full-year FY27, the company expects Subscription ARR growth of approximately 18.0% y/y, total revenue growth of approximately 13.0% y/y, Cloud revenue growth of approximately 25.5%, Data Center revenue decline of approximately (17.0%), Marketplace and other revenue growth of approximately 12.0%, GAAP gross margin of approximately 84.5%, non-GAAP gross margin of approximately 86.5%, GAAP operating margin of approximately 4.5%, and non-GAAP operating margin of approximately 25.0%. Management expects total revenue growth to re-accelerate in FY28 as it laps Data Center end-of-life timing effects. The company expects net diluted share count to remain at a minimum relatively flat in FY27 versus FY26.
TEAM YoY Financials
TEAM Revenue by Segment
TEAM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.