Highlights

  • Fiscal 2026 revenue rose 26% to $6.57 billion, with cloud revenue up 28% to $4.41 billion.
  • GAAP operating income reached $10.4 million against a loss of $130.4 million, though the net loss was $53.8 million.
  • Restructuring charges of $285.4 million covered a workforce reduction of about 10% and lease exits, substantially complete by year end.
  • Atlassian repurchased about 19.1 million shares for $1.8 billion in fiscal 2026, leaving $1.9 billion under its 2025 program.

Atlassian (NASDAQ:TEAM) shares were trading near their 52-week high at USD 225.61 on October 21, 2026, up 2.04%. The collaboration software maker closed two acquisitions in its fiscal second quarter, restructured twice during fiscal 2026, and filed its annual report for the year ended June 30, 2026 on August 14.

Atlassian was founded in Sydney, Australia in 2002 and is a Delaware corporation headquartered in San Francisco, California. It describes itself as an AI-first company whose team collaboration software connects teams through a system of work, built on the Atlassian Cloud Platform. Its portfolio of apps, agents and Collections serves software, IT and business teams, and the company says it has more than 350,000 customers. It operates as a single segment, its fiscal year ends June 30, and it had 13,301 full-time employees at that date.

Revenue Up 26% as the Company Moves to Operating Profit

Revenue for fiscal 2026 was $6.57 billion, up from $5.22 billion. Subscription revenue grew 27% to $6.26 billion, with cloud revenue rising 28% to $4.41 billion and Data Center revenue 25% to $1.83 billion. The company attributed growth mainly to paid seat expansion among existing customers and price increases. Subscription ARR, an operating metric, reached $6.61 billion from $5.38 billion, and customers with more than $10,000 in cloud ARR rose to 57,334 from 51,978.

Gross margin widened to 85% from 83%. GAAP operating income was $10.4 million versus an operating loss of $130.4 million. After a $75.9 million tax provision, the net loss was $53.8 million, or $0.21 per share, compared with $256.7 million, or $0.98. Non-GAAP net income per diluted share was $5.85 against $3.68.

Operating cash flow was $1.35 billion versus $1.46 billion, and free cash flow, a non-GAAP measure, was $1.32 billion versus $1.42 billion. The company said higher cash paid to employees, including restructuring payments, and lower interest received explained the decline.

Restructuring, Acquisitions and Capital Returns

Atlassian ran two restructuring plans in fiscal 2026. The first reduced capacity it no longer needed. The second, begun in the third quarter, self-funded investment in AI and enterprise sales and affected about 10% of the workforce. Total restructuring charges were $285.4 million, including $203.9 million of severance and termination benefits and $80.0 million of lease-related impairments. Execution and related payments were substantially complete at year end.

In the second quarter it bought The Browser Company of New York, the maker of the Dia and Arc browsers, for $488.3 million, and A Software Company, an engineering intelligence provider known as DX, for $720.4 million.

The company repurchased about 19.1 million Class A shares for $1.8 billion at an average of $94.31. It finished the $1.5 billion 2024 program in March 2026 and began a new $2.5 billion program authorized in October 2025. Cash and cash equivalents were $1.2 billion at year end, against $1.0 billion of senior notes due 2029 and 2034 and an undrawn $750 million credit facility. Remaining performance obligations were about $4.8 billion, roughly 65% of which should convert to revenue within 12 months.

Outlook and Product Transition

The annual report does not provide numeric guidance for fiscal 2027. It describes a planned end to the Data Center offering. New term licenses stopped for new customers in March 2026, sales of term licenses and expansions to existing customers end in March 2028, and maintenance and support for on-premises products is planned to end in March 2029, with an extended maintenance period of about three years for certain customers. The company believes cash, operating cash flow and its credit facility will cover needs for at least 12 months, and the new repurchase program has no fixed expiration. These are company plans and may change.