Fourth quarter and fiscal year 2026
Filed Aug 6, 2026Quarterly revenue of $1,766 million, up 28% year-over-year; quarterly cloud revenue of $1,213 million, up 31% year-over-year; Subscription ARR of $6,606 million, up 23% year-over-year; and remaining performance obligations of $4,817 million, up 44% year-over-year.
Atlassian delivered 28% quarterly revenue growth, 31% cloud revenue growth, 44% RPO growth, substantial GAAP and non-GAAP operating-margin expansion, and positive GAAP quarterly operating income and net income.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal year 2026 total revenueGAAP | $1,766 million | – | up 28% |
| Q4 fiscal year 2026 cloud revenueother | $1,213 million | – | up 31% year-over-year |
| Q4 fiscal year 2026 remaining performance obligationsother | $4,817 million | – | up 44% year-over-year |
| Q4 fiscal year 2026 operating incomeGAAP | $211 million | – | – |
| Q4 fiscal year 2026 operating marginGAAP | 12% | – | – |
| Q4 fiscal year 2026 net incomeGAAP | $139 million | – | – |
| Q4 fiscal year 2026 net income per diluted shareGAAP | $0.55 | – | – |
| Cash and cash equivalents at the end of Q4 fiscal year 2026GAAP | $1,240 million | – | – |
| Q4 fiscal year 2026 operating incomenon-GAAP | $636 million | – | – |
| Q4 fiscal year 2026 operating marginnon-GAAP | 36% | – | – |
| Q4 fiscal year 2026 net incomenon-GAAP | $473 million | – | – |
| Q4 fiscal year 2026 net income per diluted sharenon-GAAP | $1.87 | – | – |
| Q4 fiscal year 2026 cash flow from operationsnon-GAAP | $479 million | – | – |
| Q4 fiscal year 2026 free cash flownon-GAAP | $475 million | – | – |
| Q4 fiscal year 2026 free cash flow marginnon-GAAP | 27% | – | – |
| Fiscal year 2026 total revenueGAAP | $6,572 million | – | up 26% |
| Fiscal year 2026 operating incomeGAAP | $10 million | – | – |
| Fiscal year 2026 operating marginGAAP | 0.2% | – | – |
| Fiscal year 2026 net lossGAAP | $54 million | – | – |
| Fiscal year 2026 net loss per diluted shareGAAP | $0.21 | – | – |
| Subscription ARR as of June 30, 2026non-GAAP | $6,606 million | – | up 23% |
| Fiscal year 2026 operating incomenon-GAAP | $1,996 million | – | – |
| Fiscal year 2026 operating marginnon-GAAP | 30% | – | – |
| Fiscal year 2026 net incomenon-GAAP | $1,526 million | – | – |
| Fiscal year 2026 net income per diluted sharenon-GAAP | $5.85 | – | – |
| Fiscal year 2026 cash flow from operationsnon-GAAP | $1,353 million | – | – |
| Fiscal year 2026 free cash flownon-GAAP | $1,319 million | – | – |
| Fiscal year 2026 free cash flow marginnon-GAAP | 20% | – | – |
Capital returns
- Mike Cannon-Brookes announced his intention to enter into a trading plan to make open market purchases of up to $250 million in shares of Atlassian’s Class A Common Stock.
- The trading plan will be structured to satisfy the affirmative defense of Rule 10b5-1(c).
What drove it
- Quarterly cloud revenue was $1,213 million, up 31% year-over-year.
- Subscription ARR was $6,606 million as of June 30, 2026, up 23% from $5,382 million as of June 30, 2025.
- Remaining performance obligations were $4,817 million, up 44% year-over-year.
- Atlassian released new agentic development capabilities in Jira across the software development lifecycle.
- Atlassian launched Isolated Cloud and advanced AI admin controls into general availability and expanded HIPAA coverage by adding Rovo to its covered apps.
- Atlassian's MCP server and Teamwork Graph CLI hit 1 million MAU.
Concerns
- Fiscal year 2026 remained a GAAP net-loss year, with net loss of $54 million.
- The release provided no forward financial guidance.
- No prior-quarter comparisons were provided for the reported metrics.
What to watch
- Cloud revenue growth and Subscription ARR growth.
- Remaining performance obligations growth and the conversion of enterprise commitments into revenue.
- Sustainability of GAAP operating profitability following the fourth-quarter operating margin of 12%.
- Adoption of Jira agentic development capabilities, Rovo, Isolated Cloud, and AI governance controls.
- Execution under Ken Exner, who joined on August 4, 2026 as Chief Product Officer, Enterprise and Emerging.
Balance sheet and cash flow
- Cash and cash equivalents at the end of the fourth quarter of fiscal year 2026 totaled $1,240 million.
- Cash flow from operations was $479 million and free cash flow was $475 million for the fourth quarter of fiscal year 2026.
- Cash flow from operations was $1,353 million and free cash flow was $1,319 million for fiscal year 2026.
Analysis
Atlassian ended fiscal year 2026 with strong fourth-quarter growth. Total revenue was $1,766 million, up 28% from $1,384 million, while cloud revenue was $1,213 million, up 31% year-over-year. Subscription ARR reached $6,606 million as of June 30, 2026, up 23%, and remaining performance obligations reached $4,817 million, up 44% year-over-year. The RPO growth rate exceeded the reported growth rates for revenue, cloud revenue, and Subscription ARR.
Profitability improved materially in the quarter. GAAP operating income was $211 million compared with an operating loss of $28 million, and GAAP operating margin rose to 12% from (2%). GAAP net income was $139 million compared with a net loss of $24 million. Non-GAAP operating income increased to $636 million from $336 million, with non-GAAP operating margin expanding to 36% from 24%.
For the full year, total revenue was $6,572 million, up 26% from $5,215 million. Atlassian reached GAAP operating income of $10 million after an operating loss of $130 million in fiscal year 2025, but it continued to report a GAAP net loss of $54 million. Non-GAAP operating income was $1,996 million and non-GAAP operating margin was 30%, compared with $1,287 million and 25%, respectively, in fiscal year 2025.
Cash generation was positive, with fourth-quarter cash flow from operations of $479 million, free cash flow of $475 million, and free cash flow margin of 27%. For fiscal year 2026, cash flow from operations was $1,353 million, free cash flow was $1,319 million, and free cash flow margin was 20%. Cash and cash equivalents at quarter-end totaled $1,240 million.
Management emphasized AI product expansion, enterprise trust and governance capabilities, and the 1 million MAU milestone for the MCP server and Teamwork Graph CLI. The filing also disclosed Mike Cannon-Brookes' intended trading plan for open-market purchases of up to $250 million in Class A Common Stock. No forward financial guidance was included, leaving future revenue, margin, expense, and tax-rate expectations unaddressed in the release.
Management, verbatim
Q4 closes out a year that proves our long-term strategy is paying off. Total revenue grew 28% year-over-year to $1.8 billion, Cloud revenue growth accelerated to 31% year-over-year, and our MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter.
Mike Cannon-Brookes, CEO and co-Founder
Q4 was a strong finish to fiscal 2026, with Subscription ARR of $6.6 billion, increasing 23% year-over-year, and RPO growing 44% year-over-year to $4.8 billion.
James Chuong, CFO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Forward guidance for Subscription ARR, remaining performance obligations, operating margin, earnings, cash flow, or free cash flow
- Prior guidance for comparison
- Gross profit and gross margin
- Revenue by reportable segment
- Operating expenses
- Tax rate
- Debt balance
- Prior-quarter comparisons for reported metrics
- Prior-year comparisons for cash flow, free cash flow, free cash flow margin, cash and cash equivalents, cloud revenue, and remaining performance obligations
- Company share repurchases
- Dividend declaration or payment
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.