TLDR
- Atlassian stock jumped around 30% in premarket Friday after crushing Q4 earnings expectations
- EPS came in at $1.87 vs the $1.50 analyst estimate; revenue hit $1.77 billion vs $1.66 billion expected
- Cloud revenue grew 31% year-over-year to $1.21 billion
- Q1 fiscal 2027 revenue guidance of $1.705B-$1.715B beat the $1.67B consensus
- Subscription ARR hit $6.61 billion, up 23% year-over-year
Atlassian stock jumped roughly 30% in premarket trading on Friday after the company reported fiscal fourth-quarter results that beat Wall Street estimates across the board.
The company posted adjusted EPS of $1.87, well above the $1.50 analyst consensus. Revenue came in at $1.77 billion, up 28% year-over-year, topping the expected $1.66 billion.
Cloud revenue was a standout, rising 31% year-over-year to $1.21 billion. Data Center revenue reached $461.9 million, also clearing the $414.6 million estimate.
It was a record quarter for large contract deals. Annual contract value customers at the $3 million tier grew more than 50% from a year ago, while $5 million-plus customers grew more than 70%.
ATLASSIAN $TEAM Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.8B (Est. $1.66B) 🟢; +28% YoY
🔹 Cloud Revenue: $1.2B; +31% YoY
🔹 Subscription ARR: $6.6B; +23% YoY
🔹 RPO: $4.8B; +44% YoYFY27 Guide:
🔹 Subscription ARR Growth: ~+18.0% YoY
🔹 Total Revenue Growth: ~+13.0% YoY
🔹… pic.twitter.com/dAYKvpIsdd— Wall St Engine (@wallstengine) August 6, 2026
Subscription annual recurring revenue hit $6.61 billion, up 23% year-over-year. Remaining performance obligations climbed 44% to $4.82 billion.
Adjusted operating margin expanded to 36% in Q4, up from 24% in the same period last year.
CEO Mike Cannon-Brookes pointed to AI as a key growth driver. He said more than 80% of Fortune 500 companies now use Rovo, Atlassian’s AI-powered tool for Jira and Confluence.
Rovo-assisted actions grew more than 50% from the year-ago quarter. Cannon-Brookes said this translates into “millions of hours saved every month” for customers.
Large Deals and Enterprise Momentum
The company signed the largest enterprise deal in its history during the quarter with one of the world’s largest consumer technology companies. Atlassian did not name the customer.
Adobe and Google Cloud deepened their use of the Atlassian platform. Warner Bros and Xero were among customers upgrading to Teamwork Collection during the period.
Atlassian called Teamwork Collection “a massive success in its inaugural year,” saying it outperformed expectations and is driving higher average revenue per user.
The MCP server and Teamwork Graph CLI surpassed one million monthly active users during the fiscal year, more than doubling in a single quarter.
Guidance Ahead of Consensus
For Q1 fiscal 2027, Atlassian guided for revenue of $1.705 billion to $1.715 billion. The midpoint of $1.71 billion came in above the analyst consensus of $1.67 billion.
For the full fiscal year 2027, the company expects total revenue growth of about 13% and cloud revenue growth of approximately 25.5%.
Data Center revenue is expected to decline approximately 17% for the full year, as customers continue migrating to cloud.
Subscription ARR growth is projected at approximately 18% for fiscal 2027.
Despite Friday’s surge, Atlassian stock was down 32% year-to-date through Thursday’s close and down 35.6% over the prior 12 months.
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