Atlassian Corporation

Q4 total revenue was $1.8 billion, up 28% year over year. Cloud revenue was $1.2 billion, up 31% year over year, RPO was $4.8 billion, up 44% year over year, and GAAP operating margin was 12%. Management also said subscription ARR grew 23% year over year in the quarter, and FY26 ARR growth benefited by approximately 1 point from the DX acquisition. For guidance, James Chuong said the initial FY27 subscription ARR guide is 18%, and he gave a Q1 FY27 GAAP operating margin guide of 6.5% and a FY27 GAAP operating margin guide of 4.5%.

Mike Cannon-Brookes framed the quarter as evidence that Atlassian is executing well across enterprise, system of work, and AI. He emphasized that Rovo and the Teamwork Graph are becoming central to customer buying decisions, driving longer commitments, larger deals, stronger seat expansion, cross-sell, and higher NRR. He was upbeat and confident, arguing that context is a structural advantage and that the company’s AI and enterprise strategy still has substantial runway.

James Chuong highlighted strong quarter-to-quarter execution but said the FY27 ARR guide is intentionally prudent because of macro, fiscal policy, and geopolitical uncertainty and because the company is still early in the year. On cloud, he said the $49 million beat was driven primarily by cross-sell and seat expansion, not by DC migrations, which were in line with expectations and should contribute mid- to high single digits to cloud growth in FY26. On margins, he pointed to disciplined hiring, resource reallocation, and moderated stock-based compensation, while still investing in AI and enterprise sales, and he anchored the outlook with 6.5% GAAP operating margin for Q1 FY27 and 4.5% for FY27.

Analysts focused on why FY27 subscription ARR guidance steps down, what drove the cloud upside, and whether AI usage would pressure margins. Management said the ARR guide reflects prudence, the lapping of the DX acquisition, continued enterprise sales scaling, and uncertainty in the external environment. On cloud strength, management said cross-sell and seat expansion were the main drivers, with Service Collection and Teamwork Collection both contributing, and on margins they said Atlassian’s AI architecture and model-blending strategy have helped keep cost-to-serve under control even as usage rises. Questions also probed Rovo durability and the Teamwork Graph moat; Mike answered that the benefits appear structural, not limited to early adopters, and that broader platform adoption only compounds value.