Atlassian expects 2026 revenue growth of about 24%

Atlassian

30/04/2026 21:47

Overview

Team collaboration software firm's fiscal Q3 revenue rose 32% yr/yr, beating analyst expectations

Non-GAAP operating margin improved to 34% from 26% yr/yr

Company booked $223.8 mln in restructuring charges, impacting GAAP profitability

Outlook

Atlassian sees Q4 revenue between $1.653 bln and $1.661 bln

Company expects Q4 cloud revenue growth of about 25.5% year-over-year

Atlassian expects FY26 total revenue growth of about 24% year-over-year

Result Drivers

CUSTOMER COMMITMENTS - Co said revenue growth was driven by customers signing larger, longer-term contracts and expanding use of its AI-powered platform

CLOUD AND SERVICE COLLECTION GROWTH - Cloud revenue growth accelerated to 29% yr/yr and Service Collection annualized recurring revenue surpassed $1 bln,  growing over 30% yr/yr

AI AND PRODUCT INNOVATION - Co cited new AI-powered features and integrations, including agent orchestration in Jira and AI enhancements in Service Collection, as supporting customer adoption

Company press release: ID:nBw7rMb3va

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.79 bln
$1.69 bln (27 Analysts)
Q3 Net Income
-$98.39 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Atlassian Corp is $125.00, about 77.3% above its April 29 closing price of $70.49

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 31 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)