Atlassian

TEAM Q1 2026 Earnings

Reported Oct 30, 2025 at 4:09 PM ET · SEC Source

Q1 26 EPS

$1.04

BEAT +24.13%

Est. $0.84

Q1 26 Revenue

$1.43B

BEAT +2.18%

Est. $1.40B

vs S&P Since Q1 26

-52.9%

TRAILING MARKET

TEAM -47.3% vs S&P +5.7%

Market Reaction

Did TEAM Beat Earnings? Q1 2026 Results

Atlassian delivered a standout first quarter for fiscal year 2026, with shares jumping on the results as the collaboration software giant posted revenue of $1.43 billion, up 20.6% year over year and ahead of the $1.40 billion consensus, while non-GAA… Read more Atlassian delivered a standout first quarter for fiscal year 2026, with shares jumping on the results as the collaboration software giant posted revenue of $1.43 billion, up 20.6% year over year and ahead of the $1.40 billion consensus, while non-GAAP EPS of $1.04 cleared the $0.84 estimate by 24.13%. The single biggest story behind the quarter was Atlassian's "Ascend" initiative, a phased program to end-of-life its Data Center products and accelerate customer migration to the cloud, which pulled forward revenue recognition and contributed roughly 1.6 percentage points to total revenue growth. Cloud revenue reached $997.71 million, up 26% year over year, driven by seat expansion, migrations that more than doubled annually, and AI momentum that pushed monthly active users of Atlassian's AI tools past 3.5 million. Remaining performance obligations surged 42% to $3.30 billion, signaling durable enterprise demand. Looking ahead, Atlassian guided Q2 revenue of $1.53 to $1.54 billion and reaffirmed full-year growth of approximately 20.8%, alongside a FY27 non-GAAP operating margin target above 25%.

Key Takeaways

  • Cloud revenue growth of 26% driven by paid seat expansion, Data Center to Cloud migrations, cross-sell, and higher ARPU
  • Data Center to Cloud migrations more than doubled year-over-year
  • 3.5 million monthly active users of AI capabilities, up 50% quarter-over-quarter
  • RPO accelerated to $3.3 billion, up 42% year-over-year
  • Current RPO grew 30% to $2.4 billion
  • 53,017 customers with greater than $10,000 in Cloud ARR, up 13% year-over-year
  • Strong enterprise sales execution with increasing mix of large, multi-year Cloud deals
  • Restructuring charges of $55.7 million negatively impacted GAAP operating margin by 4 percentage points
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TEAM YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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TEAM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26
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TEAM Revenue by Geography

Regional revenue distribution

“Our relentless pace of AI innovation is driving results as we grew Cloud revenue in Q1 to $998 million, up 26% year-over-year, and surpassed 3.5 million monthly active users of our AI capabilities, up 50% quarter-over-quarter.”

— Mike Cannon-Brookes, Q1 2026 Earnings Press Release