Q4 2026 Atlassian Corp Earnings Call Transcript
Key Points
- Atlassian Corp (TEAM) delivered outstanding Q4 FY2026 results with total revenue growing 28% year-over-year to $1.8 billion, and cloud revenue accelerating to $1.2 billion, up 31% year-over-year.
- The company saw record enterprise performance, with all-time high deal counts at the $1 million, $3 million, and $5 million ARR levels, and its $5 million+ ARR customer cohort grew over 70% year-over-year.
- AI adoption is a key growth driver, with Rovo now used by over 80% of the Fortune 500, and Rovo-assisted actions growing 50% quarter-over-quarter, while customers adopting Rovo grow ARR at more than twice the rate of non-adopters.
- The Teamwork Graph provides a strong competitive moat, offering up to 44% more accurate answers while consuming 48% fewer tokens, which is driving customer consolidation onto the Atlassian platform and higher NRR (north of 120%).
- The company is committed to durable profitable growth, achieving a positive GAAP operating margin of 12% in Q4 and guiding to a positive GAAP operating margin for FY2027, driven by disciplined hiring and efficient AI cost management.
- Strong cross-sell momentum is evident, with the Service Collection revenue growth accelerating in Q4, driven by a 3x increase in automations as customers deploy agents across HR, legal, finance, and marketing teams.
- The company's FY2027 subscription ARR growth guidance of 18% represents a deceleration from the 23% growth seen in Q4 FY2026, reflecting a more prudent approach due to macro uncertainty and geopolitical landscape.
- The FY2026 ARR growth rate benefited by approximately one point from the DX acquisition, which will be lapped in FY2027, creating a tougher comparison for future growth.
- Management is taking a cautious stance on the second half of FY2027, citing uncertainty in the macro environment, fiscal policy, and geopolitical factors, which could impact demand.
- While the company is investing in AI and scaling its enterprise sales motion, it is also moderating stock-based compensation and maintaining a disciplined hiring approach, which could limit the pace of investment in other areas.
- The company is still early in its enterprise go-to-market motion, with only about 10% of total revenue coming from the Fortune 500, indicating significant headroom but also a long runway to fully capture that opportunity.
- The shift towards consumption-based offerings and the flex model is still in its early stages, meaning the full monetization potential of AI usage has not yet been realized.
Good afternoon, and thank you for joining Atlassian's earnings conference call for the fourth quarter of fiscal year 2026.
As a reminder, this conference call is being recorded and will be available for replay on the Investor Relations section of Atlassian's website following this call.
I will now hand the call over to Martin Lamb, Atlassian's Head of Investor Relations.
Welcome to Atlassian's fourth quarter fiscal year 2026 earnings call.
Thank you for joining us today.
On the call with me today, we have Atlassian's CEO and Co-Founder, Mike Cannon-Brooks and Chief Financial Officer, James Chung.
Earlier today, we published a shareholder letter and press release with our financial results and commentary for our fourth quarter of fiscal year 2026.
The shareholder letter is available on the Investor Relations section of our website, where you will also find other earnings-related materials, including the earnings press release and supplemental
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