Atlassian Corporation, a leading provider of AI-powered collaboration and team productivity software, announced financial results for its fourth quarter and fiscal year ended June 30, 2026. A shareholder letter was posted on the Investor Relations section of Atlassian’s website.
“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,” said Mike Cannon‑Brookes, Atlassian’s CEO and co‑Founder. “In the AI era, context is the edge but it's hard to build and can't be hired. Thanks to 25 years of connecting teams, customers get one of the best context graphs for orchestrating agentic workflows. Simply put, the Teamwork Graph helps every customer get better, faster, and cheaper results with AI.”
“Q4 was a strong finish to fiscal 2026, with Subscription ARR of $6.6 billion, increasing 23% year-over-year, and RPO growing 44% year-over-year to $4.8 billion. Enterprises view Atlassian as a long-term, strategic partner and are deepening their commitment to our open platform to securely deploy agents across their organizations with the unmatched context of the Teamwork Graph,” said James Chuong, Atlassian's CFO. “We’re complementing that top-line strength with real operational discipline. We achieved GAAP profitability, with an operating margin of 12% in Q4, reflecting our commitment to driving durable, long-term growth.”
Fourth Quarter Fiscal Year 2026 Financial Highlights:
On a GAAP basis, Atlassian reported:
Revenue: Total revenue was $1,766 million for the fourth quarter of fiscal year 2026, up 28% from $1,384 million for the fourth quarter of fiscal year 2025.
Operating Income (Loss) and Operating Margin: Operating income was $211 million for the fourth quarter of fiscal year 2026, compared with operating loss of $28 million for the fourth quarter of fiscal year 2025. Operating margin was 12% for the fourth quarter of fiscal year 2026, compared with (2%) for the fourth quarter of fiscal year 2025.
Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net income was $139 million for the fourth quarter of fiscal year 2026, compared with net loss of $24 million for the fourth quarter of fiscal year 2025. Net income per diluted share was $0.55 for the fourth quarter of fiscal year 2026, compared with net loss per diluted share of $0.09 for the fourth quarter of fiscal year 2025.
Balance Sheet: Cash and cash equivalents at the end of the fourth quarter of fiscal year 2026 totaled $1,240 million.
On a non-GAAP basis, Atlassian reported:
Operating Income and Operating Margin: Operating income was $636 million for the fourth quarter of fiscal year 2026, compared with operating income of $336 million for the fourth quarter of fiscal year 2025. Operating margin was 36% for the fourth quarter of fiscal year 2026, compared with 24% for the fourth quarter of fiscal year 2025.
Net Income and Net Income Per Diluted Share: Net income was $473 million for the fourth quarter of fiscal year 2026, compared with net income of $259 million for the fourth quarter of fiscal year 2025. Net income per diluted share was $1.87 for the fourth quarter of fiscal year 2026, compared with net income per diluted share of $0.98 for the fourth quarter of fiscal year 2025.
Free Cash Flow: Cash flow from operations was $479 million and free cash flow was $475 million for the fourth quarter of fiscal year 2026. Free cash flow margin for the fourth quarter of fiscal year 2026 was 27%.
Fiscal Year 2026 Financial Highlights:
On a GAAP basis, Atlassian reported:
Revenue: Total revenue was $6,572 million for fiscal year 2026, up 26% from $5,215 million for fiscal year 2025.
Operating Income (Loss) and Operating Margin: Operating income was $10 million for fiscal year 2026, compared with operating loss of $130 million for fiscal year 2025. Operating margin was 0.2% for fiscal year 2026, compared with (3)% for fiscal year 2025.
Net Loss and Net Loss Per Diluted Share: Net loss was $54 million for fiscal year 2026, compared with net loss of $257 million for fiscal year 2025. Net loss per diluted share was $0.21 for fiscal year 2026, compared with net loss per diluted share of $0.98 for fiscal year 2025.
On a non-GAAP basis, Atlassian reported:
Subscription ARR: Subscription ARR was $6,606 million as of June 30, 2026, up 23% from $5,382 million as of June 30, 2025.
Operating Income and Operating Margin: Operating income was $1,996 million for fiscal year 2026, compared with operating income of $1,287 million for fiscal year 2025. Operating margin was 30% for fiscal year 2026, compared with 25% for fiscal year 2025.
Net Income and Net Income Per Diluted Share: Net income was $1,526 million for fiscal year 2026, compared with net income of $976 million for fiscal year 2025. Net income per diluted share was $5.85 for fiscal year 2026, compared with net income per diluted share of $3.68 for fiscal year 2025.
Free Cash Flow: Cash flow from operations was $1,353 million and free cash flow was $1,319 million for fiscal year 2026. Free cash flow margin for fiscal year 2026 was 20%.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading “About Non-GAAP Financial Measures.”
Recent Business Highlights:
AI-Native Software Development Lifecycle: Atlassian released new agentic development capabilities in Jira that help teams orchestrate and scale agentic work across the full software development lifecycle. With new AI capabilities, engineers can turn intent into agent-ready specs, assign work to coding agents, monitor sessions, automate engineering loops, and measure AI cost against output.
Enterprise Trust: Atlassian delivered key capabilities for enterprise AI adoption at scale:
Atlassian Isolated Cloud: Atlassian launched Isolated Cloud into general availability, offering dedicated, physically separate cloud environments for regulated workloads with data egress blocked. This deployment offering enables even more enterprise customers to unlock the value of the AI-powered Atlassian system of work.
AI Governance: Atlassian launched advanced AI admin controls across cloud enterprise editions into general availability. These controls allow large, highly complex organizations to enable Rovo while meeting legal, privacy, and regulatory needs.
HIPAA compliance availability for Rovo: Atlassian expanded its HIPAA coverage by adding Rovo to its covered apps, unlocking AI for customers in the highly regulated healthcare space.
A Leader in the 2026 Gartner® Magic Quadrant™ for Developer Productivity Insight Platforms: Atlassian (DX) was recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for Developer Productivity Insight Platforms¹. As AI reshapes how software gets built, engineering leaders need evidence-based ways to measure, understand, and govern its impact across the software development lifecycle. Atlassian’s DX platform gives enterprises the frameworks and data to do exactly that – combining quantitative engineering metrics with the Developer Experience Index (DXI) through the DX Core 4, quantifying the utilization, impact, and cost of AI and agents, while also benchmarking performance against the industry’s largest dataset of engineering organizations.
A Leader in the 2026 Gartner® Magic Quadrant™ for DevSecOps Platforms: Atlassian was recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for DevSecOps Platforms² for the fourth consecutive year. Atlassian’s AI-powered system of work for software development lifecycle (SDLC) – including apps like Jira, DX, and Rovo, all connected by the Teamwork Graph – enables agents and humans to collaborate across the entire SDLC to deliver innovation at scale.
A Leader in the 2026 Gartner® Magic Quadrant™ for IT Service Management Platforms: Atlassian was recognized as a Leader in the 2026 Gartner® Magic Quadrant™ for IT Service Management Platforms³. Delivered through the AI-powered Service Collection – including Jira Service Management, Rovo, and the Teamwork Graph – Atlassian connects support teams with trusted knowledge, past requests, relevant people, agents, and related work across Atlassian and third-party tools to resolve issues faster and deliver exceptional service experiences at scale.
A Leader in The Forrester Wave™: Conversational AI Platforms for Employee Services, Q3 2026: Atlassian was recognized as a Leader in The Forrester Wave: Conversational AI Platforms for Employee Services, Q3 2026, evaluated on its Service Collection powered by Rovo. Atlassian stands out for its context capabilities through its differentiated Teamwork Graph and offers AI agents for IT, HR, and beyond – embedding Rovo directly into the key surfaces where employees already work. Atlassian believes this recognition reflects its commitment and momentum in service management, and how fundamental investments in the platform and AI further our mission to unleash the power of every team.
MCP Server and Teamwork Graph CLI Crosses 1 million MAU: Atlassian's MCP server and Teamwork Graph CLI hit 1 million MAU, making it the fastest-growing integration surface in company history. These tools provide customers a secure, permissioned way to connect any AI agent - from Claude to Cursor to ChatGPT - directly to their work across Atlassian and third-party tools, grounding those agents in the Teamwork Graph so they deliver more accurate, context-rich answers wherever teams already work.
Executive Appointment
Atlassian welcomed Ken Exner on August 4, 2026 as its new Chief Product Officer, Enterprise and Emerging. In this role, Ken will lead product strategy across four product collections: Service, Strategy, Product, and Software. In addition, Ken will focus on security, governance, and compliance solutions, that give public sector and enterprise organizations the trust and scale to run Atlassian enterprise-wide.
Ken brings more than 30 years of experience in developer and management tools, including leadership roles at AWS, where he was among the first 40 employees, and helped create many early services and features. Most recently at Elastic, he managed the three businesses of Search, Observability, and Security helping to double the company’s ARR to nearly $2 billion.
Founder Purchase Plan
Today, Mike Cannon-Brookes, Atlassian’s CEO and co-Founder, announced his intention to enter into a trading plan to make open market purchases of up to $250 million in shares of Atlassian’s Class A Common Stock. The trading plan will be structured to satisfy the affirmative defense of Rule 10b5-1(c).
Financial Targets:
Atlassian is providing its financial targets as follows:
First Quarter Fiscal Year 2027:
Total revenue is expected to be in the range of $1,705 million to $1,715 million.
Cloud revenue growth year-over-year is expected to be approximately 28.5%.
Data Center revenue growth year-over-year is expected to decline approximately (4.0%).
Marketplace and other revenue growth year-over-year is expected to be approximately 12.5%.
Gross margin is expected to be approximately 85.0% on a GAAP basis and approximately 87.0% on a non-GAAP basis.
Operating margin is expected to be approximately 6.5% on a GAAP basis and approximately 28.5% on a non-GAAP basis.
Fiscal Year 2027:
Subscription ARR growth year-over-year is expected to be approximately 18.0%.
Total revenue growth year-over-year is expected to be approximately 13.0%.
Cloud revenue growth year-over-year is expected to be approximately 25.5%.
Data Center revenue growth year-over-year is expected to decline approximately (17.0%).
Marketplace and other revenue growth year-over-year is expected to be approximately 12.0%.
Gross margin is expected to be approximately 84.5% on a GAAP basis and approximately 86.5% on a non-GAAP basis.
Operating margin is expected to be approximately 4.5% on a GAAP basis and approximately 25.0% on a non-GAAP basis.
For additional commentary regarding financial targets, please see Atlassian’s fourth quarter fiscal year 2026 shareholder letter dated August 6, 2026.
With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.
