Atlassian (TEAM) Q3 2026 Earnings
How Did TEAM Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +4.66%.
Did TEAM Beat Earnings? Q3 2026 Results
Yes. Atlassian reported Q3 2026 earnings of $1.75 a share on Apr 30, 2026, beating the $1.34 consensus estimate by 31.0%. Revenue was $1.8B against a $1.7B estimate.
Atlassian Corp delivered a standout third fiscal quarter, extending its EPS beat streak to four consecutive quarters as earnings per share of $1.75 cleared the $1.34 consensus estimate by 30.99% and revenue of $1.79 billion topped expectations by 5.24%, rising 31.7% year over year. The primary engine behind the revenue strength was an unusual dynamic in Data Center, where a change in revenue recognition tied to the announced end-of-life of Data Center offerings shifted a greater proportion of contract value into upfront term license recognition, propelling Data Center revenue to $560.73 million, up 44% year over year, and complementing Cloud revenue growth of 29% to $1.13 billion. A $223.83 million restructuring charge for workforce rebalancing and lease consolidation weighed on GAAP results, producing a net loss of $98.39 million, though non-GAAP operating income reached $607.22 million at a 34% margin. Looking ahead, Atlassian guided Q4 revenue of $1.65 billion to $1.66 billion, cautioning that Data Center growth will meaningfully decelerate in fiscal 2027 as the recognition tailwind is lapped and migration to Cloud continues.
- Cloud revenue growth accelerated to 29% y/y driven by paid seat expansion, Service Collection and Teamwork Collection cross-sell, DC-to-Cloud migrations, and higher ARPU
- Data Center revenue growth of 44% y/y driven primarily by DC EOL revenue recognition impact and pricing
- Service Collection surpassed $1 billion in ARR growing over 30% y/y
- Rovo customers growing ARR at approximately 2x the rate of non-Rovo customers
- RPO grew to $4.0 billion up 37% y/y reflecting larger, longer-term enterprise commitments
- Non-GAAP operating margin expanded 8 ppts y/y to 34% driven by higher gross margin and operating leverage from restructuring savings
- 55,913 customers with >$10,000 in Cloud ARR up 10% y/y
“Our strong Q3 results show the power of our strategy in action, with total revenue growing 32% year-over-year to $1.8 billion, as customers sign bigger, longer-term commitments, and connect their teams and workflows on our AI-powered platform.”
Atlassian CEO, on the earnings call
What Was Atlassian's Outlook in Q3 2026?
For Q4 FY26, Atlassian expects total revenue of $1,653 million to $1,661 million, with Cloud revenue growth of approximately 25.5% y/y, Data Center revenue growth of approximately 8.5% y/y, and Marketplace and other revenue growth of approximately 6.5% y/y. Q4 GAAP operating margin is expected at 4.5% and non-GAAP operating margin at 30.5%, benefiting approximately 5 percentage points from Q3 restructuring savings. For full-year FY26, the company expects total revenue growth of approximately 24% y/y, Cloud revenue growth of approximately 26.5% y/y, Data Center revenue growth of approximately 21.5% y/y, GAAP operating margin of (2.0%), and non-GAAP operating margin of 29.0%. Management expects diluted share count to decrease approximately 2.5% in FY26 from share repurchases. Looking ahead to FY27, Data Center revenue growth is expected to meaningfully decelerate as the EOL revenue recognition impact and pull-forward of expansion activity are lapped, and as Data Center customers continue migrating to Cloud.
TEAM YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.8B | $1.4B | +31.7% |
| Gross Profit | $1.5B | $1.1B | +34.1% |
| Net Income | −$98.4M | −$161.2M | −39.0% |
TEAM Revenue by Segment
TEAM Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.