Total revenue reached $1.79 billion, up 32% year‑over‑year, driven by robust demand for cloud subscriptions and AI‑enabled features. This growth follows a 23% increase in Q2 FY2026 and a 14% increase in Q3 FY2025, indicating accelerating momentum.
Cloud revenue climbed to $1.13 billion, a 29% year‑over‑year rise, marking the first quarter in which the company generated more than $1 billion from cloud. The jump was largely powered by a 44% increase in Data Center revenue to $561 million, reflecting successful migration of on‑premises customers to the cloud.
Remaining performance obligations rose to $4.0 billion, up 37% year‑over‑year, underscoring strong customer commitment to multi‑year cloud contracts. The higher RPO provides a clearer view of future revenue streams and supports the company’s long‑term growth trajectory.
While the announcement did not disclose earnings per share or guidance, analysts had projected an EPS of $0.09 for the quarter. Atlassian’s guidance for Q3 FY2026 revenue of $1.689 billion to $1.697 billion exceeded the consensus estimate of $1.65 billion, signaling confidence in continued cloud expansion.
Profitability metrics show a non‑GAAP operating margin of 27.5% and a GAAP operating margin of 0.0%, reflecting the company’s investment focus on growth. The margin profile indicates that while the company is expanding its cloud footprint, it is still balancing short‑term profitability against long‑term strategic investments.
Overall, the results highlight Atlassian’s successful cloud migration strategy and the growing importance of AI integration across its platform. The milestone of surpassing $1 billion in cloud revenue, coupled with rising RPO, positions the company well for sustained growth, even as it continues to invest heavily in product development and market expansion.
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