Q3 25 EPS
$0.97
BEAT +4.85%
Est. $0.93
Q3 25 Revenue
$1.36B
BEAT +0.28%
Est. $1.35B
vs S&P Since Q3 25
-80.5%
TRAILING MARKET
TEAM -53.4% vs S&P +27.2%
Market Reaction
Did TEAM Beat Earnings? Q3 2025 Results
Atlassian closed out its fiscal third quarter with a clean beat on both the top and bottom lines, delivering results that reinforced the company's push to position itself as the defining platform for AI-powered teamwork. Non-GAAP EPS of $0.97 topped … Read more Atlassian closed out its fiscal third quarter with a clean beat on both the top and bottom lines, delivering results that reinforced the company's push to position itself as the defining platform for AI-powered teamwork. Non-GAAP EPS of $0.97 topped the $0.93 consensus estimate by 4.85%, while revenue of $1.36 billion edged past expectations by 0.28% and grew 14.1% year-over-year, powered by Cloud revenue expansion of 25% as paid seat growth, higher average revenue per user, and ongoing Data Center-to-Cloud migrations drove the headline figure. The quarter's defining moment came at the Team '25 conference, where Atlassian announced Rovo, its AI solution, would be bundled into all Premium and Enterprise editions of its flagship products at no extra charge, a deliberate trade of near-term revenue for deeper platform adoption. Looking ahead, Atlassian guided Q4 revenue of $1.35 billion to $1.36 billion with a 22% non-GAAP operating margin, projecting full-year revenue growth of approximately 19% while flagging macroeconomic uncertainty as a risk to its enterprise expansion.
Key Takeaways
- • Cloud revenue growth of 25% driven by paid seat expansion, higher ARPU, Data Center to Cloud migrations, and cross-sell
- • Subscription revenue growth of 19% year-over-year
- • Revenue growth primarily driven by paid seat expansion and higher average revenue per user (ARPU)
- • Gross profit and operating income benefited from operational efficiency and disciplined cost management
- • Operating cash flow increased 15% year-over-year driven by growth in collections
- • Non-GAAP operating expenses lower than expected due to reduced discretionary spending
- • GAAP gross margin improved two percentage points driven by higher Cloud gross margin
TEAM YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
TEAM Revenue by Segment
With YoY comparisons, source: SEC Filings
TEAM Revenue by Geography
Regional revenue distribution
“I am filled with immense pride as I reflect on Team '25 and our customers' and partners' reactions to our relentless focus on innovation. Our long-term investments in building a world-class Cloud platform have enabled us to advance the Atlassian System of Work and bring Rovo's powerful AI capabilities to the center. Our vision for the future of human-AI collaboration is resonating deeply with customers, and we are more excited than ever to execute on our mission of unleashing the potential of every team.”
— Mike Cannon-Brookes, Q3 2025 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% |