Atlassian (NASDAQ:TEAM) reported fourth-quarter fiscal 2026 revenue growth of 28% to $1.8 billion, as cloud revenue rose 31% year over year to $1.2 billion. The company said the quarter capped a fiscal year marked by enterprise deal expansion, increasing adoption of its AI offerings and a 12% GAAP operating margin.
CEO and co-founder Mike Cannon-Brookes said remaining performance obligations, or RPO, increased 44% from a year earlier to $4.8 billion. He also highlighted record activity among customers with annual recurring revenue commitments of at least $1 million, $3 million and $5 million. Atlassian’s cohort of customers generating more than $3 million in ARR grew more than 50% year over year, while customers above $5 million in ARR grew more than 70%, he said.
Chuong also noted that fiscal 2026 ARR growth benefited by about 1 percentage point from Atlassian’s acquisition of DX, which closed in November 2025. The company will also be comparing against acceleration experienced during the second half of fiscal 2026, he said.
Cloud outperformance driven by cross-sell and seat expansion
Chuong said data center migrations to cloud progressed in line with expectations and were not a driver of the company’s $49 million cloud-revenue outperformance versus guidance. Data center migrations contributed approximately mid- to high-single-digit growth to cloud revenue during fiscal 2026, he said.
Instead, the primary contributors to the cloud-revenue beat were cross-selling and seat expansion, including uptake of Atlassian’s Service Collection and Teamwork Collection offerings. Service Collection revenue growth accelerated during the fourth quarter, according to Chuong, as customers expanded use of AI agents beyond IT departments into functions including HR, legal, finance and marketing.
Teamwork Collection has also served as a central vehicle for customers adopting AI capabilities, including additional Rovo credits. Chuong said the offering provides customers with predictability and the ability to distribute token usage across their organizations. He added that Teamwork Collection customers have four to five times more paid seats than standalone Jira or Confluence customers.
The company said net revenue retention was above 120% in the quarter. Chuong said seat expansion remained broad-based across core Jira and Confluence products as well as the company’s collections. Approximately two-thirds of Jira and Confluence users are knowledge workers outside software development, including employees in HR, legal and finance, he said.
Rovo adoption and Teamwork Graph cited as AI advantages
Cannon-Brookes said Rovo is now used by more than 80% of the Fortune 500, while Rovo-assisted actions rose 50% sequentially. Customers that adopt Rovo are growing ARR at more than twice the rate of non-adopters, according to the company.
He attributed much of the AI offering’s customer value proposition to the Teamwork Graph, Atlassian’s data and context layer. The graph spans more than 200 billion objects and connections, Cannon-Brookes said. For agents grounded in the Teamwork Graph, Atlassian said organizations can receive answers that are up to 44% more accurate while using 48% fewer tokens.
“Context, their internal knowledge, experience, and memory is much harder for organizations to build and it cannot be hired,” Cannon-Brookes said, arguing that the company’s historical work data and connections across applications provide a structural advantage.
During customer discussions, AI and the Teamwork Graph were among the top two cited reasons for upgrading to cloud and Teamwork Collection, Cannon-Brookes said. He said customers are seeking better quality responses, lower token consumption and faster results across structured workflows such as Jira and Service Collection, as well as unstructured workflows including Confluence, Loom and Trello.
Atlassian also said MCP and command-line-interface users surpassed 1 million and more than doubled during the quarter. MCP calls increased 400% in the quarter, Cannon-Brookes said, as users and agents accessed the Teamwork Graph from other platforms.
Profitability outlook includes continued AI and enterprise investments
Chuong said Atlassian expects a 6.5% GAAP operating margin in the first quarter of fiscal 2027 and a 4.5% GAAP operating margin for the full year. The company plans to pursue durable, profitable growth through disciplined hiring, resource reallocation and moderating stock-based compensation, while continuing investments in AI and enterprise sales.
Cannon-Brookes said the company’s AI cost structure reflects multiyear work on its AI gateway, which blends multiple models and manages traffic and serving costs. Despite increased usage, he said the company has focused on providing AI results at a competitive cost while maintaining profitability objectives.
On the enterprise opportunity, Chuong said Atlassian is present in 85% of the Fortune 500, but those customers account for roughly 10% of total revenue. He characterized the company as still being in the early stages of building its enterprise go-to-market motion, supported by investments in product compliance, sales and customer-success capabilities.
Cannon-Brookes said the quarter’s large-deal momentum did not result from a single change, but rather reflected years of investment in enterprise technology, compliance and customer engagement. He said customers are increasingly viewing Atlassian as a strategic platform and making longer commitments, signing larger deals and expanding their deployments across collections.
About Atlassian (NASDAQ:TEAM)
Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.
Atlassian’s product portfolio centers on tools designed to help teams plan, build and support software and business processes.
