Atlassian Corporation reported FY26 first‑quarter revenue of $1.432 billion, a 21% year‑over‑year increase, and cloud revenue of $998 million, up 26% YoY. Non‑GAAP operating income rose to $322.7 million, compared with $268.1 million in the same quarter of FY25, and earnings per share reached $1.04, beating consensus estimates of $0.99.
In the immediately preceding quarter (Q4 FY25), Atlassian generated $1.384 billion in revenue, $335.9 million in non‑GAAP operating income, and $0.98 in non‑GAAP EPS, indicating a slight decline in operating income and EPS relative to the current quarter but a higher total revenue figure.
The company attributes the strong performance to accelerated adoption of its AI‑enabled products, including the “Teamwork Graph” and Rovo, which now serve 3.5 million monthly active users—a 50% sequential increase. Cloud migration continues to accelerate as Atlassian phases out its Data Center products, and recent acquisitions of The Browser Company and DX are expected to deepen AI capabilities across the platform.
Guidance for FY26 Q2 projects revenue between $1.535 billion and $1.543 billion, with cloud revenue expected to grow roughly 22.5%. Non‑GAAP operating margin is forecast to remain at 24.5%. The company has authorized a new $2.5 billion share repurchase program and will retire CFO Joe Binz effective June 30 2026.
Atlassian was named a Leader in the 2025 Gartner Magic Quadrant for DevOps Platforms for the third consecutive year, underscoring its strong market position. The company’s focus on enterprise‑grade security, governance, and permissioning, combined with its AI strategy, positions it to capture larger enterprise customers as it continues to shift to a cloud‑first model.
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