Atlassian Q3 2026 earnings beat on cloud and AI growth

2 min readUpdated May 1, 2026

Shares of Atlassian $TEAM surged over 20% after the collaboration software maker posted fiscal third-quarter revenue of $1.79 billion, a 32% increase from a year ago. Analysts had expected $1.69 billion in revenue, according to CNBC.

Non-GAAP earnings per diluted share came in at $1.75, compared with analyst expectations of $1.32. On a GAAP basis, Atlassian posted a net loss of $98.4 million, or $0.38 per diluted share, widening from a net loss of $70.8 million in the year-ago quarter. The GAAP result was affected by $223.8 million in restructuring charges tied to workforce rebalancing and lease consolidations, which reduced GAAP operating margin by 12 percentage points, the company said.

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Cloud revenue rose 29% year over year to $1.13 billion. Analysts had expected $1.08 billion in cloud sales, according to CNBC. Data center revenue totaled $560.7 million, well ahead of the $515 million analysts had anticipated. The company's remaining performance obligations — a measure of contracted future revenue — grew 37% year over year to $4.0 billion.

CEO and co-founder Mike Cannon-Brookes said in a statement that customers are "sign bigger, longer-term commitments" on Atlassian $TEAM's platform. The company's Service Collection product eclipsed $1 billion in annual recurring revenue, growing more than 30% year over year, the company said.

"Cloud revenue growth accelerated to 29% year-over-year as customers deepen their engagement with our System of Work through continued strong seat expansion in Jira and adoption of Teamwork Collection for its increased AI capabilities," CFO James Chuong said in a statement.

Speaking to CNBC, Cannon-Brookes pushed back on fears weighing on software stocks, saying the quarter showed the resilience of Atlassian's business. "They're certainly not playing out in Atlassian's numbers, in terms of how our customers continue to expand the use of our software as a strategic partner to their business," he said.

Looking ahead to the full fiscal year, Atlassian updated its outlook, targeting cloud revenue growth of approximately 26.5% and data center revenue growth of around 21.5%. The company now expects total revenue to grow about 24% for the full year.

Earlier this year, the company eliminated approximately 1,600 positions — about one in ten employees — with management framing the reduction as a way to redirect resources toward AI development and enterprise growth, according to CNBC. Heading into Friday's report, Atlassian's shares had shed more than 45% in 2026, a reflection of the steep losses across software stocks amid fears that AI could erode demand for traditional enterprise software.

Atlassian stock jumps 20% after beating revenue and earnings expectations

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