Atlassian Q4 FY2026 Revenue Reaches $1.77B, Stock Jumps 37.4% on Cloud Acceleration

TEAM closed fiscal 2026 with fourth-quarter revenue of $1.766 billion, up roughly 28% year over year and ahead of consensus by about 2% to 3%. Non-GAAP earnings of $1.87 per share beat the $1.50 street figure by nearly 25%, and GAAP EPS swung to a positive $0.55 from a $0.09 loss a year earlier. Shares jumped 37.4%, trading as high as $151.57.

Cloud is the engine. Cloud revenue growth accelerated to 31% year over year, and adjusted operating income of $636.3 million came in almost 25% above the $510.8 million estimate, meaning the migration to cloud is expanding margin rather than compressing it. For a company that spent years absorbing the cost of moving a server install base, that inflection is the thesis.

The guidance deserves a closer read than the stock reaction implies. Management guided fiscal 2027 subscription annual recurring revenue growth of about 18%, down from 23% in the quarter just reported, and total revenue growth of roughly 13% against 28% actual. Next-quarter revenue was guided to $1.71 billion, only modestly above the street. Those are decelerating numbers.

The reconciliation is that expectations going into the print were considerably lower than the guide, so a decelerating forecast still cleared the bar. That makes the setup asymmetric from here: the stock has repriced on a beat plus a better-than-feared guide, and the fiscal 2027 targets now leave little room for the deceleration to run faster than the 18% subscription ARR path management laid out. Watch cloud net revenue retention and enterprise seat expansion as the leading indicators of whether 18% holds.

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