Atlassian Announces Third Quarter Fiscal Year 2026 Results
TEAM
Revenue of $1,787 million, up 32% year-over-year Cloud revenue of $1,132 million, up 29% year-over-year Remaining performance obligations of $3,996 million, up 37% year-over-year GAAP operating margin of (3)% and non-GAAP operating margin of 34%
Published on 04/30/2026 at 04:09 pm EDT
Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its third quarter ended March 31, 2026. A shareholder letter was posted on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.
“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,” said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder. “Service Collection eclipsed $1 billion in ARR, and is growing over 30% year-over-year, as it continues to take share and reinforce our conviction in the long-term growth opportunity of the Atlassian System of Work.”
“Cloud revenue growth accelerated to 29% year-over-year as customers deepen their engagement with our System of Work through continued strong seat expansion in Jira and adoption of Teamwork Collection for its increased AI capabilities,” said James Chuong, Atlassian's CFO. “The momentum across our three strategic priorities of Enterprise, AI, and the System of Work continues to build, and I’m excited about the significant opportunity ahead to drive durable, profitable growth as we scale.”
Third Quarter Fiscal Year 2026 Financial Highlights:
On a GAAP basis, Atlassian reported:
On a non-GAAP basis, Atlassian reported:
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:
Financial Targets:
Atlassian is providing its financial targets as follows:
Fourth Quarter Fiscal Year 2026:
Fiscal Year 2026:
For additional commentary regarding financial targets, please see Atlassian’s third quarter fiscal year 2026 shareholder letter dated April 30, 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.
Shareholder Letter and Webcast Details:
A detailed shareholder letter is available on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:
Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.
About Atlassian
Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 85% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” “further,” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and capabilities and planned offerings and capabilities, investments, System of Work, AI solutions and innovation, customers, size and term of sales agreements, company culture, strategic priorities, partnerships, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, and GAAP and non-GAAP financial measures including gross margin and operating margin.
We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in our most recently filed Forms 10-K and 10-Q, as well as those that may be updated in our future filings with the SEC. These documents are available on the SEC Filings section of the Investor Relations section of our website at https://investors.atlassian.com.
About Non-GAAP Financial Measures
In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.
Our Non-GAAP Financial Measures include:
We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled “Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of GAAP to Non-GAAP Financial Targets” that present such reconciliations.
Customers with >$10,000 in Cloud ARR
We define the number of customers with Cloud ARR greater than $10,000 at the end of any particular period as the number of organizations with unique domains with an active Cloud subscription for two or more seats and greater than $10,000 in Cloud ARR.
We define Cloud ARR as the annualized recurring revenue run-rate of Cloud subscription agreements at a point in time. We calculate Cloud ARR by taking the Cloud monthly recurring revenue (“Cloud MRR”) run-rate and multiplying it by 12. Cloud MRR for each month is calculated by aggregating monthly recurring revenue from committed contractual amounts at a point in time. Cloud ARR and Cloud MRR should be viewed independently of revenue and do not represent our revenue under GAAP, as they are operational metrics that can be affected by contract start and end dates and renewal rates.
Atlassian Corporation
Condensed Consolidated Statements of Operations
(U.S. $ and shares in thousands, except per share data)
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Revenues:
Subscription
$
1,698,885
$
1,272,876
$
4,581,043
$
3,618,072
Other
88,086
83,840
224,796
212,888
Total revenues
1,786,971
1,356,716
4,805,839
3,830,960
Cost of revenues (1) (2)
262,762
219,675
758,377
660,426
Gross profit
1,524,209
1,137,041
4,047,462
3,170,534
Operating expenses:
Research and development (1) (2)
926,954
685,320
2,509,437
1,968,634
Marketing and sales (1) (2)
439,029
295,832
1,151,890
820,119
General and administrative (1)
214,510
168,345
586,503
483,694
Total operating expenses
1,580,493
1,149,497
4,247,830
3,272,447
Operating loss
(56,284
)
(12,456
)
(200,368
)
(101,913
)
Other income (expense), net
(4,923
)
(14,861
)
331
(42,292
)
Interest income
12,554
27,767
60,464
81,917
Interest expense
(14,141
)
(7,804
)
(35,302
)
(22,413
)
Loss before income taxes
(62,794
)
(7,354
)
(174,875
)
(84,701
)
Provision for income taxes
(35,595
)
(63,453
)
(18,029
)
(148,083
)
Net loss
$
(98,389
)
$
(70,807
)
$
(192,904
)
$
(232,784
)
Net loss per share attributable to Class A and Class B common stockholders:
Basic
$
(0.38
)
$
(0.27
)
$
(0.73
)
$
(0.89
)
Diluted
$
(0.38
)
$
(0.27
)
$
(0.73
)
$
(0.89
)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders:
Basic
260,965
262,671
262,606
261,423
Diluted
260,965
262,671
262,606
261,423
(1) Amounts include stock-based compensation as follows:
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Cost of revenues
$
17,697
$
20,980
$
57,749
$
62,225
Research and development
291,014
240,847
862,373
694,570
Marketing and sales
53,123
43,071
152,612
122,323
General and administrative
46,501
41,944
139,352
132,600
(2) Amounts include amortization of acquired intangible assets, as follows:
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Cost of revenues
$
24,683
$
10,131
$
54,393
$
30,377
Research and development
94
94
281
281
Marketing and sales
6,564
3,672
15,670
11,017
Atlassian Corporation
Condensed Consolidated Balance Sheets
(U.S. $ in thousands)
(unaudited)
March 31, 2026
June 30, 2025
Assets
Current assets:
Cash and cash equivalents
$
1,136,342
$
2,512,874
Marketable securities
—
424,268
Accounts receivable, net
907,439
778,302
Prepaid expenses and other current assets
289,903
175,793
Total current assets
2,333,684
3,891,237
Non-current assets:
Property and equipment, net
75,612
105,118
Operating lease right-of-use assets
119,676
169,127
Strategic investments
210,908
221,942
Intangible assets, net
463,457
244,840
Goodwill
2,303,393
1,304,445
Deferred tax assets
15,312
3,762
Other non-current assets
128,881
101,499
Total assets
$
5,650,923
$
6,041,970
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
207,734
$
222,092
Accrued expenses and other current liabilities
816,261
681,601
Deferred revenue, current portion
2,250,863
2,227,002
Operating lease liabilities, current portion
48,197
50,164
Total current liabilities
3,323,055
3,180,859
Non-current liabilities:
Deferred revenue, net of current portion
160,781
254,252
Operating lease liabilities, net of current portion
205,740
201,483
Long-term debt
989,081
987,684
Deferred tax liabilities
24,259
23,881
Other non-current liabilities
68,979
48,157
Total liabilities
4,771,895
4,696,316
Stockholders’ equity
Common stock
3
3
Additional paid-in capital
6,786,376
5,574,290
Accumulated other comprehensive income (loss)
(12,285
)
13,226
Accumulated deficit
(5,895,066
)
(4,241,865
)
Total stockholders’ equity
879,028
1,345,654
Total liabilities and stockholders’ equity
$
5,650,923
$
6,041,970
Atlassian Corporation
Condensed Consolidated Statements of Cash Flows
(U.S. $ in thousands)
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Cash flows from operating activities:
Net loss
$
(98,389
)
$
(70,807
)
$
(192,904
)
$
(232,784
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
41,284
23,178
101,238
69,154
Stock-based compensation
408,335
346,842
1,212,086
1,011,718
Impairment charges for leases and leasehold improvements
53,643
—
80,316
—
Deferred income taxes
11,138
1,746
(37,570
)
(1,183
)
Amortization of interest rate swap contracts
—
(6,337
)
(7,163
)
(20,357
)
Net loss (gain) on strategic investments
1,691
6,643
(22,280
)
24,546
Net foreign currency loss (gain)
5,322
(5,169
)
6,649
(7,750
)
Other
(160
)
(264
)
(80
)
(241
)
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable, net
4,260
53,770
(121,769
)
(13,955
)
Prepaid expenses and other assets
1,118
(294
)
(135,141
)
(65,967
)
Accounts payable
(23,922
)
(93
)
(13,564
)
14,626
Accrued expenses and other liabilities
182,992
131,508
100,932
53,804
Deferred revenue
(19,837
)
171,958
(96,756
)
253,467
Net cash provided by operating activities
567,475
652,681
873,994
1,085,078
Cash flows from investing activities:
Business combinations, net of cash acquired
—
(994
)
(1,228,875
)
(5,969
)
Purchases of property and equipment
(6,211
)
(14,366
)
(29,612
)
(29,853
)
Purchases of strategic investments
(2,250
)
(1,100
)
(7,250
)
(26,650
)
Purchases of marketable securities
—
(116,716
)
(67,259
)
(277,039
)
Proceeds from maturities of marketable securities
59,016
53,584
144,125
125,212
Proceeds from sales of marketable securities
352,093
1,998
352,093
1,998
Proceeds from sales of strategic investments
1,493
624
36,333
4,937
Net cash provided by (used in) investing activities
404,141
(76,970
)
(800,445
)
(207,364
)
Cash flows from financing activities:
Repurchases of Class A Common Stock
(990,945
)
(134,305
)
(1,441,191
)
(387,156
)
Other
—
—
—
(3,143
)
Net cash used in financing activities
(990,945
)
(134,305
)
(1,441,191
)
(390,299
)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
(2,549
)
1,783
(9,301
)
(3,709
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(21,878
)
443,189
(1,376,943
)
483,706
Cash, cash equivalents, and restricted cash at beginning of period
1,158,697
2,218,639
2,513,762
2,178,122
Cash, cash equivalents, and restricted cash at end of period
$
1,136,819
$
2,661,828
$
1,136,819
$
2,661,828
Atlassian Corporation
Revenues by Deployment Options
(U.S. $ in thousands)
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Cloud
$
1,132,436
$
880,429
$
3,197,171
$
2,519,697
Data Center
560,733
388,516
1,368,997
1,086,391
Marketplace and other (1)
93,802
87,771
239,671
224,872
Total revenues
$
1,786,971
$
1,356,716
$
4,805,839
$
3,830,960
(1) Included in Marketplace and other is premier support revenue. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options. Premier support is recognized as Subscription revenue on the condensed consolidated statements of operations as the services are delivered over the term of the arrangement.
Restructuring Charges
(U.S. $ in thousands)
(unaudited)
During the third quarter ended March 31, 2026, the Company incurred restructuring charges associated with rebalancing of its resources and consolidating leases to accelerate its path to GAAP profitability, self-fund further investment in AI and enterprise sales, and reorganize its teams to move with more focus and speed around the Atlassian System of Work.
A summary of the restructuring charges for the three months ended March 31, 2026 by major activity type is as follows:
Severance and Other Termination Benefits
Lease Consolidation
Total
Cost of revenue
$
16,747
$
4,281
$
21,028
Research and development
104,972
23,548
128,520
Marketing and sales
24,423
18,267
42,690
General and administrative
24,025
7,568
31,593
Total
$
170,167
$
53,664
$
223,831
Atlassian Corporation
Reconciliation of GAAP to Non-GAAP Results
(U.S. $ and shares in thousands, except percentage and per share data)
(unaudited)
Three Months Ended March 31,
Nine Months Ended March 31,
2026
2025
2026
2025
Gross profit
GAAP gross profit
$
1,524,209
$
1,137,041
$
4,047,462
$
3,170,534
Plus: Stock-based compensation
17,697
20,980
56,317
62,225
Plus: Amortization of acquired intangible assets
24,683
10,131
54,393
30,377
Plus: Restructuring charges (3)
21,028
—
52,620
—
Non-GAAP gross profit
$
1,587,617
$
1,168,152
$
4,210,792
$
3,263,136
Gross margin
GAAP gross margin
85
%
84
%
85
%
83
%
Plus: Stock-based compensation
1
2
1
2
Plus: Amortization of acquired intangible assets
2
—
1
—
Plus: Restructuring charges (3)
1
—
1
—
Non-GAAP gross margin
89
%
86
%
88
%
85
%
Operating income
GAAP operating loss
$
(56,284
)
$
(12,456
)
$
(200,368
)
$
(101,913
)
Plus: Stock-based compensation
408,335
346,842
1,210,654
1,011,718
Plus: Amortization of acquired intangible assets
31,341
13,897
70,344
41,675
Plus: Restructuring charges (3)
223,831
—
279,509
—
Non-GAAP operating income
$
607,223
$
348,283
$
1,360,139
$
951,480
Operating margin
GAAP operating margin
(3
%)
(1
%)
(4
%)
(3
%)
Plus: Stock-based compensation
23
26
25
27
Plus: Amortization of acquired intangible assets
2
1
1
1
Plus: Restructuring charges (3)
12
—
6
—
Non-GAAP operating margin
34
%
26
%
28
%
25
%
Net income
GAAP net loss
$
(98,389
)
$
(70,807
)
$
(192,904
)
$
(232,784
)
Plus: Stock-based compensation
408,335
346,842
1,210,654
1,011,718
Plus: Amortization of acquired intangible assets
31,341
13,897
70,344
41,675
Plus: Restructuring charges (3)
223,831
—
279,509
—
Less: Income tax adjustments (1)
(108,576
)
(28,427
)
(314,523
)
(103,777
)
Non-GAAP net income
$
456,542
$
261,505
$
1,053,080
$
716,832
Net income per share
GAAP net loss per share - diluted
$
(0.38
)
$
(0.27
)
$
(0.73
)
$
(0.89
)
Plus: Stock-based compensation
1.56
1.29
4.60
3.82
Plus: Amortization of acquired intangible assets
0.12
0.05
0.27
0.16
Plus: Restructuring charges (3)
0.86
—
1.06
—
Less: Income tax adjustments (1)
(0.41
)
(0.10
)
(1.20
)
(0.39
)
Non-GAAP net income per share - diluted
$
1.75
$
0.97
$
4.00
$
2.70
Weighted-average diluted shares outstanding
Weighted-average shares used in computing diluted GAAP net loss per share
260,965
262,671
262,606
261,423
Plus: Dilution from dilutive securities (2)
252
5,959
646
3,601
Weighted-average shares used in computing diluted non-GAAP net income per share
261,217
268,630
263,252
265,024
Free cash flow
GAAP net cash provided by operating activities
$
567,475
$
652,681
$
873,994
$
1,085,078
Less: Capital expenditures
(6,211
)
(14,366
)
(29,612
)
(29,853
)
Free cash flow
$
561,264
$
638,315
$
844,382
$
1,055,225
(1) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal years 2026 and 2025, we determined the projected non-GAAP tax rate to be 24% and 26%, respectively. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Examples of the non-recurring and period-specific items include, but are not limited to, changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.
(2) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three and nine months ended March 31, 2026 and 2025, because the effect would have been anti-dilutive.
(3) Restructuring charges include stock-based compensation expense related to the rebalancing of resources for the nine months ended March 31, 2026.
Atlassian Corporation
Reconciliation of GAAP to Non-GAAP Financial Targets
Three Months Ending June 30, 2026
GAAP gross margin
85.5%
Plus: Stock-based compensation
1.0
Plus: Amortization of acquired intangible assets
1.5
Non-GAAP gross margin
88.0%
GAAP operating margin
4.5%
Plus: Stock-based compensation
24.0
Plus: Amortization of acquired intangible assets
2.0
Non-GAAP operating margin
30.5%
Fiscal Year Ending June 30, 2026
GAAP gross margin
84.5%
Plus: Stock-based compensation
1.5
Plus: Restructuring charges
0.8
Plus: Amortization of acquired intangible assets
1.2
Non-GAAP gross margin
88.0%
GAAP operating margin
(2.0%)
Plus: Stock-based compensation
25.0
Plus: Restructuring charges
4.4
Plus: Amortization of acquired intangible assets
1.6
Non-GAAP operating margin
29.0%
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