Atlassian — Fourth Quarter and Fiscal Year 2026 Earnings Summary

Financial Performance

• Q4 2026 total revenue was $1,766 million, up 28% year-over-year from $1,384 million in Q4 2025.
• Q4 2026 cloud revenue was $1,213 million, up 31% year-over-year.
• Q4 2026 GAAP operating income was $211 million with a 12% operating margin, compared to a $28 million operating loss and (2%) margin in Q4 2025.
• Q4 2026 non-GAAP operating income was $636 million with a 36% operating margin, compared to $336 million and 24% in Q4 2025.
• Q4 2026 GAAP net income was $139 million ($0.55 per diluted share), compared to a $24 million net loss ($(0.09) per share) in Q4 2025.
• Q4 2026 non-GAAP net income was $473 million ($1.87 per diluted share), compared to $259 million ($0.98 per share) in Q4 2025.
• Q4 2026 free cash flow was $475 million with a 27% free cash flow margin.
• Fiscal 2026 total revenue was $6,572 million, up 26% year-over-year from $5,215 million in Fiscal 2025.
• Fiscal 2026 GAAP operating income was $10 million with a 0.2% margin, compared to a $130 million operating loss and (3%) margin in Fiscal 2025.
• Fiscal 2026 GAAP net loss was $54 million ($(0.21) per share), compared to a $257 million net loss ($(0.98) per share) in Fiscal 2025.
• Fiscal 2026 non-GAAP operating income was $1,996 million with a 30% margin, compared to $1,287 million and 25% in Fiscal 2025.
• Fiscal 2026 non-GAAP net income was $1,526 million ($5.85 per share), compared to $976 million ($3.68 per share) in Fiscal 2025.
• Fiscal 2026 free cash flow was $1,319 million with a 20% margin.
• Subscription ARR was $6,606 million as of June 30, 2026, up 23% year-over-year from $5,382 million.
• Remaining performance obligations (RPO) were $4,817 million, up 44% year-over-year.
• Cash and cash equivalents totaled $1,240 million at the end of Q4 2026.
• Long-term debt was $989.6 million as of June 30, 2026, compared to $987.7 million in the prior year.

Guidance and Future Outlook

• Q1 Fiscal 2027 total revenue is expected to be between $1,705 million and $1,715 million.
• Q1 Fiscal 2027 cloud revenue growth is expected to be approximately 28.5% year-over-year.
• Q1 Fiscal 2027 Data Center revenue growth is expected to decline approximately 4.0% year-over-year.
• Q1 Fiscal 2027 Marketplace and other revenue growth is expected to be approximately 12.5% year-over-year.
• Q1 Fiscal 2027 GAAP operating margin is expected to be approximately 6.5% and non-GAAP approximately 28.5%.
• Fiscal 2027 Subscription ARR growth is expected to be approximately 18.0% year-over-year.
• Fiscal 2027 total revenue growth is expected to be approximately 13.0% year-over-year.
• Fiscal 2027 cloud revenue growth is expected to be approximately 25.5% year-over-year.
• Fiscal 2027 Data Center revenue growth is expected to decline approximately 17.0% year-over-year.
• Fiscal 2027 Marketplace and other revenue growth is expected to be approximately 12.0% year-over-year.
• Fiscal 2027 GAAP operating margin is expected to be approximately 4.5% and non-GAAP approximately 25.0%.

Business Segments and Product Lines

• Atlassian released new agentic development capabilities in Jira to help teams orchestrate and scale agentic work across the software development lifecycle.
• Atlassian Isolated Cloud was launched into general availability, offering dedicated, physically separate cloud environments for regulated workloads with data egress blocked.
• Advanced AI admin controls across cloud enterprise editions were launched into general availability to support AI governance.
• Rovo was added to HIPAA coverage, expanding AI availability for customers in the healthcare space.
• The MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter.
• Atlassian was recognized as a Leader in the 2026 Gartner Magic Quadrant for Developer Productivity Insight Platforms.
• Atlassian was recognized as a Leader in the 2026 Gartner Magic Quadrant for DevSecOps Platforms for the fourth consecutive year.
• Atlassian was recognized as a Leader in the 2026 Gartner Magic Quadrant for IT Service Management Platforms.
• Atlassian was recognized as a Leader in The Forrester Wave: Conversational AI Platforms for Employee Services, Q3 2026.

Market and Competitive Landscape

• Atlassian's software powers over 85% of the Fortune 500 and serves 350,000+ customers worldwide.
• The company's Teamwork Graph is positioned as a key differentiator for orchestrating agentic workflows and providing context-rich answers for AI agents.
• Enterprises are deepening their commitment to the open platform to securely deploy agents across organizations.

Risks and Challenges

• The press release includes standard forward-looking statement disclaimers noting risks related to AI solutions, platform offerings, executive transitions, and anticipated growth.
• Fiscal 2027 guidance indicates a significant expected decline in Data Center revenue growth (4.0% in Q1 and 17.0% for the full year).
• GAAP operating margins are projected to be lower than non-GAAP margins due to stock-based compensation and amortization charges.

Management Commentary and Tone

• CEO Mike Cannon-Brookes stated that Q4 closed a year proving their long-term strategy is paying off, with cloud growth accelerating and the Teamwork Graph surpassing one million MAU.
• CFO James Chuong highlighted strong top-line growth and operational discipline, noting the achievement of GAAP profitability and the view of Atlassian as a strategic partner by enterprises.
• Management emphasized that in the AI era, context is the edge and the Teamwork Graph provides unmatched context for orchestrating agentic workflows.

Other Key Points

• Ken Exner was appointed Chief Product Officer, Enterprise and Emerging, effective August 4, 2026.
• CEO Mike Cannon-Brookes announced an intention to enter a 10b5-1 trading plan to purchase up to $250 million in Class A Common Stock.
• Fiscal 2026 GAAP operating expenses included $1,606.6 million in stock-based compensation.
• Fiscal 2026 included $279.5 million in restructuring charges, which are excluded from non-GAAP measures.
• Fiscal 2026 included $1,800.5 million in repurchases of Class A Common Stock.
• A shareholder letter and webcast were scheduled for August 6, 2026.