Q3 26 EPS
$1.75
Q3 26 Revenue
$1.79B
BEAT +5.24%
Est. $1.70B
vs S&P Since Q3 26
+26.1%
BEATING MARKET
TEAM +26.1% vs S&P +0.0%
Market Reaction
Did TEAM Beat Earnings? Q3 2026 Results
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 5.2… Read more 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.
Key Takeaways
- • 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
TEAM Forward Guidance & Outlook
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
Q3 2026 vs Q3 2025, source: SEC Filings
TEAM Revenue by Segment
With YoY comparisons, source: SEC Filings
TEAM Revenue by Geography
Regional revenue distribution
“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.”
— Mike Cannon-Brookes, Q3 2026 Earnings Press Release
TEAM Earnings Trends
TEAM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TEAM EPS Trend
Earnings per share: estimate vs actual
TEAM Revenue Trend
Quarterly revenue: estimate vs actual
TEAM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $1.75 | — | $1.79B | +5.24% |
| Q2 26 BEAT | $1.14 | $1.22 | +6.62% | $1.59B | +2.74% |
| Q1 26 BEAT | $0.84 | $1.04 | +24.13% | $1.43B | +2.18% |
| Q4 25 BEAT FY | $0.85 | $0.98 | +15.29% | $1.38B | +0.95% |
| FY Full Year | $3.56 | $3.68 | +3.37% | $5.22B | +0.25% |
| Q3 25 BEAT | $0.93 | $0.97 | +4.85% | $1.36B | +0.28% |