Atlassian

TEAM Q2 2026 Earnings

Reported Feb 5, 2026 at 4:09 PM ET · SEC Source

Q2 26 EPS

$1.22

BEAT +6.62%

Est. $1.14

Q2 26 Revenue

$1.59B

BEAT +2.74%

Est. $1.54B

vs S&P Since Q2 26

-10.0%

TRAILING MARKET

TEAM -5.6% vs S&P +4.3%

Market Reaction

Did TEAM Beat Earnings? Q2 2026 Results

Atlassian closed out a strong second fiscal quarter of 2026, beating on both the top and bottom lines as accelerating enterprise demand and a landmark Cloud milestone underscored the company's growth trajectory. Non-GAAP EPS came in at $1.22, topping… Read more Atlassian closed out a strong second fiscal quarter of 2026, beating on both the top and bottom lines as accelerating enterprise demand and a landmark Cloud milestone underscored the company's growth trajectory. Non-GAAP EPS came in at $1.22, topping the $1.14 consensus estimate by 6.62%, while revenue of $1.59 billion grew 23.3% year-over-year and cleared analyst expectations by 2.74%, driven in large part by Atlassian's first-ever $1.07 billion Cloud revenue quarter. Enterprise momentum was particularly notable, with the number of deals exceeding $1 million in annual contract value nearly doubling year-over-year and remaining performance obligations surging 44% to $3.81 billion, reflecting deepening long-term customer commitments. Non-GAAP operating margin held at 27%, up one percentage point year-over-year. Looking ahead, management raised its full-year FY26 revenue growth outlook to approximately 22%, and guided Q3 revenue to $1.69 billion to $1.70 billion, while also signaling plans to accelerate share repurchases in the second half at roughly two to three times the first-half pace.

Key Takeaways

  • Cloud revenue grew 26% YoY to first-ever $1 billion Cloud revenue quarter
  • RPO up 44% YoY to $3.8 billion reflecting deepening enterprise commitments
  • Record number of $1M+ ACV deals, up nearly 2x YoY
  • Cloud net revenue retention rate above 120%, ticking up for third consecutive quarter
  • Paid seat expansion, cross-sell, and customer retention exceeded expectations
  • Revenue growth driven by paid seat expansion, higher ARPU, and cross-sell of additional products
  • Data Center EOL revenue recognition impact and price increases drove Data Center growth
  • DX acquisition contributed approximately 75 basis points to Cloud revenue growth
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TEAM YoY Financials

Q2 2026 vs Q2 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

“We closed out Q2 with incredible momentum across the Atlassian platform and achieved some impressive milestones along the way. We delivered our first-ever $1 billion Cloud revenue quarter, which grew 26% year-over-year, crossed 350,000 customers, and Rovo surpassed 5 million monthly active users.”

— Mike Cannon-Brookes, Q2 2026 Earnings Press Release