Atlassian (TEAM) Q4 2026 earnings summary

Executive summary

• Q4 FY 2026 revenue rose 28% year-over-year to $1.8 billion, with cloud revenue up 31% to $1.2 billion.

• Subscription ARR grew 23% year-over-year to $6,606 million, and RPO increased 44% to $4,817 million.

• Record enterprise deals: $3 million ARR customers up 50%, $5 million ARR customers up 70% year-over-year.

• AI adoption accelerated, with Rovo used by over 80% of the Fortune 500 and Rovo-assisted actions up 50% quarter-over-quarter.

• Major product milestones included surpassing one million monthly active users for MCP server and Teamwork Graph CLI.

Financial highlights

• Q4 GAAP operating margin was 12%, up from -2% a year ago; non-GAAP operating margin was 36%.

• Q4 GAAP net income was $139 million (EPS $0.55); non-GAAP net income was $473 million (EPS $1.87).

• Fiscal year 2026 revenue totaled $6,572 million, up 26% year-over-year.

• Free cash flow for Q4 was $475 million (margin 27%); for the year, $1,319 million (margin 20%).

• Cash and cash equivalents at year-end were $1,240 million.

Outlook and guidance

• FY 2027 subscription ARR growth is guided at 18%, with total revenue growth projected at ~13% and cloud revenue growth at ~25.5%.

• Q1 FY27 revenue expected between $1,705 million and $1,715 million; cloud revenue growth ~28.5%.

• GAAP operating margin guidance: 6.5% for Q1 FY27, 4.5% for FY27; non-GAAP operating margin: 28.5% for Q1, 25% for FY27.

• Guidance reflects caution due to macroeconomic, fiscal, and geopolitical uncertainties.

• Management remains confident in broad-based customer demand and healthy business momentum.