Atlassian Reports 28% Revenue Growth to $1.766B and 35% Stock Surge

Atlassian reported fiscal Q4 results on August 6 after closing its fiscal year on June 30. Revenue reached $1.766B, up 28% year over year. Cloud revenue hit $1.213B, up 31%. Subscription ARR stood at $6.606B, up 23%. RPO rose 44% to $4.817B. GAAP operating income was $211M compared to a $28M loss the prior year.

Growth Accelerated at $6.6 Billion ARR

Cloud revenue growth rose from 28% for the full fiscal year to 31% in Q4. Total revenue growth increased from 26% for the year to 28% in Q4. FY26 revenue reached $6.572B, up 26%. The stock closed at $110.17 on August 6 and rose toward $146 the next day for a 35% single-day gain. According to SaaStr, the acceleration occurred after the stock traded around $84 in early July.

AI Features Added Without Separate Pricing

Atlassian included new agentic capabilities in paid Jira Cloud at no extra charge. These features cover orchestration of third-party tools including Claude Code, Cursor, and GitHub Copilot. Rovo is now used by more than 80% of the Fortune 500. Rovo-assisted actions grew 50% quarter over quarter. The company serves 350,000 customers including 85% of the Fortune 500.

Margins and Forward Guidance

Q4 non-GAAP operating margin reached 36%, up from 24% a year earlier. FY26 free cash flow was $1.319B, down from $1.416B. Guidance for Q1 FY27 non-GAAP operating margin is 28.5%. FY27 non-GAAP operating margin is guided at 25% and GAAP operating margin at 4.5%. Non-GAAP gross margin is guided at 86.5% for FY27, down from 88% in FY26. According to SaaStr, the margin compression follows increased AI-related spend in R&D and GTM ahead of associated revenue.

Revenue Versus ARR Timing

Reported revenue grew 28% while Subscription ARR grew 23%. The FY27 guide aligns with the lower ARR growth rate. According to SaaStr, revenue growth received a boost from contract timing and Data Center renewals.