Atlassian Corporation - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.36%.
Did TEAM Beat Earnings? Q4 2025 Results
Atlassian closed its fiscal fourth quarter with a decisive beat on both lines, capping a year in which the collaboration software maker demonstrated that enterprise AI adoption is translating into real financial momentum. The company posted earnings per share of $0.98, clearing the $0.85 consensus estimate by 15.29%, while revenue of $1.38 billion edged ahead of the $1.37 billion Wall Street expected, representing 22.3% year-over-year growth. The standout driver was surging enterprise demand, with deals exceeding $1.00 million in annual contract value more than doubling year-over-year and AI monthly active users climbing to 2.3 million, up over 50% from the prior quarter alone. Premium and Enterprise ARR grew over 40% year-over-year, reflecting how AI capabilities embedded in higher-tier plans are lifting both attach rates and expansion revenue; cloud net revenue retention held at approximately 120%, reinforcing that dynamic. Some analysts had flagged elongated enterprise deal cycles as a concern heading into the print, making the record large-deal activity particularly notable. Looking ahead, Atlassian guided Q1 FY26 revenue of approximately $1.40 billion and set full-year FY26 expectations for roughly 18% revenue growth and a 24% non-GAAP operating margin.
- Cloud revenue growth of 26% driven by paid seat expansion, higher ARPU, cross-sell, and Data Center to Cloud migrations
- Record number of deals greater than $1 million in ACV, up over 2x year-over-year
- 2.3 million AI monthly active users, up over 50% from prior quarter
- Cloud net revenue retention of approximately 120%
- Premium and Enterprise ARR growth of over 40% year-over-year
- Data Center to Cloud migrations up over 60% for the full year
- Remaining performance obligation of $3.3 billion, up 38% year-over-year
- 51,978 customers with greater than $10,000 in Cloud ARR, up 13% year-over-year
“We closed out FY25 delivering over $5.2 billion of revenue, generating over $1.4 billion in free cash flow, and reaching 2.3 million AI monthly active users. AI is fundamentally changing the way we work, and creating significant tailwinds for Atlassian in the process. With our world-class cloud platform underpinned by the breadth and depth of our Teamwork Graph, and Rovo's AI capabilities at the center, we are uniquely positioned to help every team unleash enterprise knowledge at scale.”
Atlassian CEO, on the earnings call
Forward Guidance & Outlook
For Q1 FY26, Atlassian expects total revenue in the range of $1,395 million to $1,403 million, Cloud revenue growth of approximately 22.5% YoY, Data Center revenue growth of approximately 8.0% YoY, Marketplace and other revenue growth of approximately 11.5% YoY, GAAP operating margin of approximately (5.5%) and non-GAAP operating margin of approximately 20.5%. For full-year FY26, the company expects total revenue growth of approximately 18.0% YoY, Cloud revenue growth of approximately 21.0%, Data Center revenue growth of approximately 12.5%, Marketplace and other revenue growth of approximately 10.0%, GAAP gross margin of approximately 83.5%, non-GAAP gross margin of approximately 85.5%, GAAP operating margin of approximately (2.5%), and non-GAAP operating margin of approximately 24.0%. The outlook is risk-adjusted for macroeconomic uncertainty and enterprise go-to-market evolution. The company reiterated confidence in its long-term target of 20%+ compounded annual revenue growth through FY27 and FY27 non-GAAP operating margin in excess of 25%.
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Figures from SEC filings and company reports. Not investment advice.