Atlassian swings to $91M net profit in Q1 FY2027

Fiscal 2027 targets call for approximately 26.0% Cloud revenue growth and an approximately 16.0% Data Center revenue decline.

Available on EDGAR 11/05/2026 - 04:10 PM EST Accepted by SEC EDGAR 11/05/2026 - 04:09 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Atlassian Corp. (TEAM) reported first-quarter fiscal 2027 revenue of $1,772 million for the quarter ended September 30, 2026, up 24% year over year. Cloud revenue was $1,302 million, up 31%; Subscription ARR was $6,812 million, up 23%; and remaining performance obligations were $4,746 million, up 44%. GAAP operating income was $189 million versus an operating loss of $96 million a year earlier, while GAAP net income was $91 million versus a $52 million loss. Free cash flow was $463 million.

For the second quarter of fiscal 2027, Atlassian expects total revenue of $1,825 million to $1,835 million and Cloud revenue growth of approximately 27.0%; Data Center revenue growth is expected to decline approximately 14.0%. For fiscal 2027, total revenue growth is expected at approximately 13.75%, with Data Center revenue growth expected to decline approximately 16.0%. Gene Liu will step down as Chief Accounting Officer effective November 13, 2026; Atlassian said his decision was not due to disagreement over accounting practices, financial reporting or internal controls. Eli Berkovitch was appointed effective November 16, with an offer including a $475,000 annual base salary, a target bonus of 50% of base salary, and restricted stock units with a $4.5 million target value vesting quarterly over four years.

5 points · 0 major

PositiveiHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointRevenue reached $1,772 million, up 24% year over year in Q1 FY2027.
• Moderate pointCloud revenue reached $1,302 million, up 31% year over year.
• Moderate pointGAAP operating income was $189 million, versus a $96 million loss.
• Moderate pointGAAP net income was $91 million, versus a $52 million loss.
• Moderate pointNet cash from operations was $468.5 million, versus $128.7 million year over year.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Data Center revenue targets: approximately 14.0% decline in Q2 and 16.0% for fiscal 2027, year over year.

Filing Explained

In the quarter ended September 30, 2026, Atlassian reported $588,010 thousand in cash outflows for Class A share repurchases and $1,120,504 thousand in cash and equivalents at quarter-end.

8-K Event Classification

3 items: 2.02, 5.02, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Revenue: $1,772 million Cloud revenue: $1,302 million Subscription ARR: $6,812 million +5 more

8 metrics

Revenue $1,772 million Q1 FY2027; up 24% year over year

Cloud revenue $1,302 million Q1 FY2027; up 31% year over year

Subscription ARR $6,812 million Up 23% year over year

Remaining performance obligations $4,746 million Up 44% year over year

GAAP operating income $189 million Q1 FY2027; compared with an operating loss of $96 million a year earlier

GAAP net income $91 million Q1 FY2027; compared with a net loss of $52 million a year earlier

Free cash flow $463 million Q1 FY2027

Second-quarter total revenue target $1,825 million to $1,835 million Q2 FY2027

Key Terms

Subscription ARR, Remaining performance obligations, non-GAAP operating margin, Free cash flow, +1 more

5 terms

Subscription ARR financial

"Subscription ARR is the annual recurring revenue from subscription agreements"

Subscription ARR (Annual Recurring Revenue) is the predictable income a company expects to earn each year from customers who subscribe to its services or products. Think of it like a subscription to a magazine—once you sign up, you pay regularly, and the company can count on that steady income. Investors pay attention to subscription ARR because it shows the company's ongoing revenue strength and growth potential.

Remaining performance obligations financial

"Remaining performance obligations of $4,746 million, up 44% year-over-year"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

non-GAAP operating margin financial

"non-GAAP operating margin was 32%"

Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.

Free cash flow financial

"Free cash flow is defined as net cash provided by operating activities less capital expenditures"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

restricted stock units financial

"initial grant of restricted stock units with a target value of $4.5 million"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

Earnings Snapshot

Revenue: $1,772 million · Guidance included

First quarter fiscal year 2027 ended September 30, 2026

Revenue $1,772 million Up 24% year over year

Cloud revenue $1,302 million Up 31% year over year

Subscription ARR $6,812 million Up 23% year over year

Remaining performance obligations $4,746 million Up 44% year over year

GAAP operating income $189 million Compared with an operating loss of $96 million in Q1 FY2026

GAAP net income $91 million Compared with a net loss of $52 million in Q1 FY2026

Guidance

Q2 FY2027: total revenue of $1,825 million to $1,835 million; Cloud revenue growth approximately 27.0%; Data Center revenue growth expected to decline approximately 14.0%. FY2027: total revenue growth approximately 13.75%; Subscription ARR growth approximately 18.5%; Cloud revenue growth approximately 26.0%; Data Center revenue growth expected to decline approximately 16.0%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did TEAM report in Q1 FY2027?

Atlassian reported $1,772 million in Q1 FY2027 revenue, up 24% year over year. Cloud revenue was $1,302 million, up 31% year over year.

What are TEAM’s fiscal 2027 revenue targets?

For the second quarter, Atlassian expects total revenue of $1,825 million to $1,835 million and Cloud revenue growth of approximately 27.0%. For fiscal 2027, total revenue growth is expected to be approximately 13.75%, Cloud revenue growth approximately 26.0%, and Data Center revenue growth to decline approximately 16.0%.

What does Eli Berkovitch’s offer as TEAM’s Chief Accounting Officer include?

The offer includes a $475,000 annual base salary, a target annual bonus equal to 50% of base salary subject to the bonus plan’s terms, an initial restricted stock unit grant with a $4.5 million target value vesting quarterly over four years, and a $100,000 signing bonus subject to repayment if he resigns within twelve months after starting employment.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001650372FALSE00016503722026-11-052026-11-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K
_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
November 5, 2026

ATLASSIAN CORPORATION

(Exact Name of Registrant as Specified in its Charter)

_________________

Delaware

001-37651

88-3940934

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

350 Bush Street, Floor 13

San Francisco, California 94104

(Address of principal executive offices and Zip Code)

(415) 701-1110

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

_________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Class A Common Stock, par value $0.00001 per share

TEAM

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.    Results of Operations and Financial Condition.

On November 5, 2026, Atlassian Corporation (the “Company”) issued a press release announcing its results for the quarter ended September 30, 2026 (the “Press Release”). A copy of the Press Release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein. The Company also published a letter to its shareholders announcing its financial results for the quarter ended September 30, 2026 (the “Shareholder Letter”). The full text of the Shareholder Letter is attached as Exhibit 99.2 to this current report on Form 8-K and is incorporated by reference herein.

The information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;

Compensatory Arrangements of Certain Officers.

(b)

Departure of Chief Accounting Officer

On November 2, 2026, Gene Liu notified the Company of his decision to step down from his position as Chief Accounting Officer and principal accounting officer of the Company, effective November 13, 2026, following more than 12 years with the Company. The Company thanks Mr. Liu for his many contributions to Atlassian, including his contributions building a world-class financial reporting and accounting team and wishes him the best in his future endeavors.

Mr. Liu’s decision is not the result of any disagreement with the Company, including with respect to any matter relating to the Company’s accounting practices, financial reporting or internal controls.

Appointment of Chief Accounting Officer

Effective as of November 16, 2026, the board of directors of the Company appointed Eli Berkovitch as the Company’s Chief Accounting Officer. In connection with the appointment, the Company and Mr. Berkovitch have entered into an offer letter (the “Offer Letter”), which provides for an annual base salary of $475,000 and a target annual bonus equal to 50% of the annual base salary, subject to the terms and conditions of the bonus plan in effect for the bonus plan year. The Offer Letter also provides for an initial grant of restricted stock units with a target value of $4.5 million (“RSUs”), which will vest in quarterly installments over four years. Mr. Berkovitch will also receive a one-time signing bonus of $100,000, which will be subject to repayment if he resigns at any time within twelve months following the commencement of his employment. Mr. Berkovitch will also be eligible for severance and change in control benefits under the terms and conditions of the Company’s Amended and Restated Executive Severance Plan.

Mr. Berkovitch, age 50, has served in senior financial leadership roles at Box, Inc. from May 2015 to October 2026, including as Chief Accounting Officer since April 2021. Mr. Berkovitch previously served at PubMatic, Inc. from October 2013 to April 2015 and in various audit roles at PricewaterhouseCoopers from December 2001 to October 2013. Mr. Berkovitch is a Certified Public Accountant and holds a Bachelor’s degree in Accounting and Economics from Tel Aviv University.

There are no arrangements or understandings between Mr. Berkovitch and any other persons pursuant to which Mr. Berkovitch was named an executive officer of the Company. The Company will also enter into its standard form of indemnification agreement with Mr. Berkovitch (in substantially the form filed with the Securities and Exchange Commission as Exhibit 10.2 to the Company’s Current Report on Form 8-K on October 3, 2022), which will require the Company to indemnify Mr. Berkovitch, to the fullest extent permitted under applicable law, for certain liabilities to which he may become subject to in the execution or discharge of his duties. There are no related party transactions between the Company and Mr. Berkovitch that would require disclosure under Item 404(a) of Regulation S-K.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.						Description
99.1						Press Release dated November 5, 2026.
99.2						Shareholder Letter dated November 5, 2026.
104						Cover Page Interactive Data File (formatted as Inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ATLASSIAN CORPORATION

Date:

November 5, 2026

By:

/s/ James Chuong

James Chuong

Chief Financial Officer

Atlassian Announces First Quarter Fiscal Year 2027 Results

Revenue of $1,772 million, up 24% year-over-year

Cloud revenue of $1,302 million, up 31% year-over-year

Subscription ARR of $6,812 million, up 23% year-over-year

Remaining performance obligations of $4,746 million, up 44% year-over-year

GAAP operating margin of 11% and non-GAAP operating margin of 32%

TEAM Anywhere/San Francisco (November 5, 2026) — Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced financial results for its first quarter ended September 30, 2026. A shareholder letter was posted on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com.

"Q1 was a strong start to fiscal 2027, with RPO up 44% and Teamwork Collection customers up 7x year-over-year," said Mike Cannon-Brookes, Atlassian’s CEO and Co‑Founder. "Enterprise AI has hit an inflection point. Model power is table stakes. The advantage goes to platforms that bring people and AI agents together with shared context, deep collaboration, and confidence in the outcome. That’s what we’ve built. Our Teamwork Graph gives agents the context of how work actually gets done, and AMP brings them into teams as accountable teammates. We’ve never been better positioned, and we’re just getting started."

"Subscription ARR grew 23% year-over-year and Cloud revenue grew 31% year-over-year, carrying forward our strong momentum across our strategic priorities of Enterprise, AI, and the System of Work. Customers are increasingly bringing teams, agents, and workflows onto the Atlassian platform as the Teamwork Graph provides unmatched context, enabling organizations to leverage the full potential of AI at enterprise scale,” said James Chuong, Atlassian’s CFO. "We paired that growth with continued operational discipline, expanding GAAP operating margin to 11% while generating $463 million in free cash flow, reflecting our commitment to durable, profitable growth."

First Quarter Fiscal Year 2027 Financial Highlights:

On a GAAP basis, Atlassian reported: 

•Revenue: Total revenue was $1,772 million for the first quarter of fiscal year 2027, up 24% from $1,433 million for the first quarter of fiscal year 2026.

•Operating Income (Loss) and Operating Margin: Operating income was $189 million for the first quarter of fiscal year 2027, compared with operating loss of $96 million for the first quarter of fiscal year 2026. Operating margin was 11% for the first quarter of fiscal year 2027, compared with (7%) for the first quarter of fiscal year 2026.

•Net Income (Loss) and Net Income (Loss) Per Diluted Share: Net income was $91 million for the first quarter of fiscal year 2027, compared with net loss of $52 million for the first quarter of fiscal year 2026. Net income per diluted share was $0.35 for the first quarter of fiscal year 2027, compared with net loss per diluted share of $0.20 for the first quarter of fiscal year 2026.

•Balance Sheet: Cash and cash equivalents at the end of the first quarter of fiscal year 2027 totaled $1,121 million.

On a non-GAAP basis, Atlassian reported: 

•Operating Income and Operating Margin: Operating income was $576 million for the first quarter of fiscal year 2027, compared with operating income of $323 million for the first quarter of fiscal year 2026. Operating margin was 32% for the first quarter of fiscal year 2027, compared with 23% for the first quarter of fiscal year 2026.

•Net Income and Net Income Per Diluted Share: Net income was $423 million for the first quarter of fiscal year 2027, compared with net income of $276 million for the first quarter of fiscal year 2026. Net income per diluted share was $1.65 for the first quarter of fiscal year 2027, compared with net income per diluted share of $1.04 for the first quarter of fiscal year 2026.

•Free Cash Flow: Cash flow from operations was $469 million and free cash flow was $463 million for the first quarter of fiscal year 2027. Free cash flow margin for the first quarter of fiscal year 2027 was 26%.

1

Recent Business Highlights:

•Service Collection Surpasses 70,000 Customers: Demonstrating strong momentum across enterprise service management, Service Collection has over $1 billion in ARR that is growing north of 30% year-over-year and has expanded to more than 70,000 customers. This growth is driven by organizations expanding beyond IT into HR, legal, finance, customer service, and marketing teams, alongside strong momentum in competitive displacements where seat growth exceeded 40% year-over-year.

•Team’26 Europe: Atlassian held its largest Team Europe event to date in Amsterdam. Thousands of customers and partners attended to discover the latest product announcements and innovations, including:

◦Agentic Multiplayer Protocol (AMP): Atlassian’s foundation for human-agent teamwork moves AI out of isolated, single-player chat windows and into multiplayer mode, where agents collaborate alongside humans as visible teammates. Each agent gets a distinct identity and governed authority, is grounded in the shared context of the Teamwork Graph, and provides clear ownership and a full audit trail for human review. Agents join work the same way a colleague would: being @mentioned, commenting, co-editing a page live, being assigned a Jira work item, taking a step in an automated workflow, or responding to a Loom video.

◦A Rebuilt Atlassian MCP Server: Atlassian’s MCP Server has been redesigned from the ground up, reaching 220+ tools across Jira, Confluence, Loom, Bitbucket and more through a lean interface, covering more ground while using 25% fewer tokens compared to the previous version for the same Jira and Confluence work. With over 2 million monthly users and more than 15 million daily tool calls, it is currently one of Anthropic’s top used MCP servers.

◦Increased Governance: Atlassian showed how enterprises can move AI from experimentation to governed execution: agents get their own identities, scoped permissions and audit trails, all running on the permission-aware Teamwork Graph. That trust layer is what enables large, regulated customers to scale AI on the Atlassian platform with confidence. It makes Atlassian the system of work for both humans and agents, and it deepens the company’s position in the enterprise.

◦Expanded strategic partnership with OpenAI: Atlassian and OpenAI are grounding frontier intelligence in enterprise context, pairing OpenAI’s models with the Atlassian Teamwork Graph so teams can connect ChatGPT and Codex to the real shape of their work, with human review and measurable impact at the center. This partnership accelerates Atlassian’s position as the context layer that helps enterprises realize tangible ROI from their AI spend.

•Further development across the AI-Native Software Development Lifecycle: Atlassian introduced new capabilities that help engineering organizations move from experimenting with AI to using it across the entire software development process. These include Code Context, which gives teams a shared understanding of their codebase and the work connected to it, Jira Agents Dashboard, which shows agent adoption across teams, and DX AI Measurement, which shows leaders where AI is delivering ROI.

•Accelerating public sector roadmap: Atlassian announced its intent to accelerate its IL5 submission forward by six months to July 2028, with FedRAMP High following in January 2029, signaling a commitment to serve public sector customers on the Atlassian Cloud platform. Rovo will also be submitted for FedRAMP Moderate authorization in Atlassian Government Cloud by June 2027. Additionally, Atlassian entered a new OneGov agreement with the U.S. General Services Administration (GSA) to help federal agencies modernize and transition from Data Center to Atlassian Government Cloud.

•A Leader in the 2026 Gartner® Magic Quadrant™ for Collaborative Work Management: Atlassian was recognized as a Leader for the second consecutive year in the Gartner Magic Quadrant for Collaborative Work Management¹. We believe Atlassian’s Collaborative Work Management solution, which unifies teams across Jira, Confluence, Loom, and Rovo through the Teamwork Graph, is the right foundation for how organizations work together. Teamwork Collection is grounded in deep organizational context, Atlassian's AI is designed to understand the people, priorities, and purpose behind each initiative, enabling organizations to align execution with strategy, proactively resolve bottlenecks, and accelerate time-to-value across every department.

•A Leader in the 2026 Gartner® Magic Quadrant™ for Marketing Work Management Platforms: Atlassian was named a Leader in the Gartner Magic Quadrant for Marketing Work Management Platforms for 3 years in a row2. We believe Atlassian’s Teamwork Collection is the engine that drives cross-functional marketing initiatives, allowing marketing teams to use Jira to orchestrate projects across functions, Confluence to develop creative briefs and marketing plans, Loom for asynchronous video communication, and Rovo to bring AI into their workflows. Atlassian’s solution is built to enable marketing teams to accelerate the launch of products and campaigns, reduce operational complexity, and focus on creativity, strategy, and results.

2

•A Leader in the IDC MarketScape Worldwide AI-Enabled IT Service Management Software 2026 Vendor Assessment3: Atlassian was named a Leader in the 2026 IDC MarketScape for AI-enabled ITSM. Atlassian’s AI-powered Service Collection, consisting of Jira Service Management, Customer Service Management, Assets, and Rovo, connects development, IT and business teams across the enterprise to elevate support experiences, keeps critical services running and delivers value quickly.

•Atlassian Marketplace Surpasses $7 Billion in Lifetime Sales: The Atlassian Marketplace surpassed $7 billion in lifetime sales since its inception in 2012. More than 2,000 Marketplace partners have created more than 6,000 Marketplace apps, integrations, and agents delivering additional value and innovation to customers.

—————————————————————

Footnotes:

1 - Gartner, Magic Quadrant for Collaborative Work Management, Nikos Drakos, Joe Mariano, Lacy Lei, Hironori Hayashi, 5 October 2026

2 - Gartner, Magic Quadrant for Marketing Work Management Platforms, Michael McCune, Lacretia Marsh, et al, 26 October 2026

3 - IDC MarketScape: Worldwide AI-Enabled IT Service Management Software 2026 Vendor Assessment, By Snow Tempest, September 2026, IDC Doc. # US54115226

GARTNER is a trademark of Gartner, Inc. and/or its affiliates. Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved.

The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings press release), and the opinions expressed in the Gartner Content are subject to change without notice.

Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.

Financial Targets:

Atlassian is providing its financial targets as follows:

Second Quarter Fiscal Year 2027: 

•Total revenue is expected to be in the range of $1,825 million to $1,835 million.

•Cloud revenue growth year-over-year is expected to be approximately 27.0%.

•Data Center revenue growth year-over-year is expected to decline approximately (14.0%).

•Marketplace and other revenue growth year-over-year is expected to be approximately 20.0%.

•Gross margin is expected to be approximately 84.5% on a GAAP basis and approximately 86.5% on a non-GAAP basis. 

•Operating margin is expected to be approximately 4.5% on a GAAP basis and approximately 26.0% on a non-GAAP basis. 

Fiscal Year 2027: 

•Subscription ARR growth year-over-year is expected to be approximately 18.5%.

•Total revenue growth year-over-year is expected to be approximately 13.75%.

•Cloud revenue growth year-over-year is expected to be approximately 26.0%.

•Data Center revenue growth year-over-year is expected to decline approximately (16.0%).

•Marketplace and other revenue growth year-over-year is expected to be approximately 15.0%.

•Gross margin is expected to be approximately 84.5% on a GAAP basis and approximately 86.5% on a non-GAAP basis. 

•Operating margin is expected to be approximately 5.0% on a GAAP basis and approximately 25.5% on a non-GAAP basis. 

For additional commentary regarding financial targets, please see Atlassian’s first quarter fiscal year 2027 shareholder letter dated November 5, 2026.

With respect to Atlassian’s expectations under “Financial Targets” above, a reconciliation of GAAP to non-GAAP gross margin and operating margin has been provided in the financial statement tables included in this press release.

3

Shareholder Letter and Webcast Details:

A detailed shareholder letter is available on the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Atlassian will host a webcast to answer questions today:

•When: Thursday, November 5, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

•Webcast: A live webcast of the call can be accessed from the Investor Relations section of Atlassian’s website at https://investors.atlassian.com. Following the call, a replay will be available on the same website.

Atlassian has used, and will continue to use, its Investor Relations website at https://investors.atlassian.com as a means of making material information public and for complying with its disclosure obligations.

About Atlassian

Atlassian unleashes the potential of every team. A recognized leader in software development, work management, and enterprise service management software, Atlassian enables enterprises to connect their business and technology teams with an AI-powered system of work that unlocks productivity at scale. Atlassian’s collaboration software powers over 85% of the Fortune 500 and 350,000+ customers worldwide - including NASA, Rivian, Deutsche Bank, United Airlines, and Bosch - who rely on our solutions to drive work forward.

Investor Relations Contact

Martin Lam

IR@atlassian.com

Media Contact

Marie-Claire Maple

press@atlassian.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. In some cases, you can identify these statements by forward-looking words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “aim,” “seek,” “could,” “would,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “forecast”, “predict,” “potential” or “continue,” and similar expressions or variations, but these words are not the exclusive means for identifying such statements. All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and capabilities and planned offerings and capabilities, investments, System of Work, Teamwork Graph, AI solutions and innovation, customers, partnerships, anticipated growth, outlook and results, and our financial targets such as total revenue, Cloud, Data Center, and Marketplace and other revenue, Subscription ARR, and GAAP and non-GAAP financial measures including gross margin and operating margin.

We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management’s beliefs and assumptions only as of the date such statements are made. Further information on these and other factors that could affect our financial results is included in filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the section titled “Risk Factors” in our most recently filed Forms 10-K and 10-Q, as well as those that may be updated in our future filings with the SEC. These documents are available on the SEC Filings section of the Investor Relations section of our website at https://investors.atlassian.com.

About Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), defined as non-GAAP financial measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial

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Measures, which may be different from similarly titled non-GAAP measures used by other companies, provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations. Management believes that tracking and presenting these Non-GAAP Financial Measures provides management, our board of directors, investors and the analyst community with the ability to better evaluate matters such as: our ongoing core operations, including comparisons between periods and against other companies in our industry; our ability to generate cash to service our debt and fund our operations; and the underlying business trends that are affecting our performance.

Our Non-GAAP Financial Measures include:

•Non-GAAP gross profit and non-GAAP gross margin. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.

•Non-GAAP operating income and non-GAAP operating margin. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, and restructuring charges.

•Non-GAAP net income and non-GAAP net income per diluted share. Excludes expenses related to stock-based compensation, amortization of acquired intangible assets, restructuring charges, and the related income tax effects of these items.

•Free cash flow. Free cash flow is defined as net cash provided by operating activities less capital expenditures, which consists of purchases of property and equipment.

We understand that although these Non-GAAP Financial Measures are frequently used by investors and the analyst community in their evaluation of our financial performance, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. We compensate for such limitations by reconciling these Non-GAAP Financial Measures to the most comparable GAAP financial measures. We encourage you to review the tables in this press release titled “Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of GAAP to Non-GAAP Financial Targets” that present such reconciliations.

Subscription ARR

Subscription ARR is the annual recurring revenue from subscription agreements to our Cloud and Data Center offerings at a point in time. It reflects the annualized value of active subscriptions, including recurring revenue from upgrades and add-ons, but excludes one-time fees. For monthly subscriptions, ARR is calculated by multiplying monthly recurring revenue (MRR) by 12. ARR should be viewed independently of revenue and does not represent our revenue under GAAP, as it is an operational metric that can be affected by contract start and end dates, renewal rates, and the timing of invoices.

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Atlassian Corporation

Condensed Consolidated Statements of Operations

(U.S. $ and shares in thousands, except per share data)

(unaudited)

									Three Months Ended September 30,
															2026						2025
Revenues:
Subscription															$	1,697,818					$	1,374,502
Other															74,332						58,051
Total revenues															1,772,150						1,432,553
Cost of revenues (1) (2)															261,918						257,924
Gross profit															1,510,232						1,174,629
Operating expenses:
Research and development (1) (2)															758,882						755,994
Marketing and sales (1) (2)															390,367						336,427
General and administrative (1)															172,190						178,545
Total operating expenses															1,321,439						1,270,966
Operating income (loss)															188,793						(96,337)
Other income (expense), net															(16,485)						18,804
Interest income															12,084						29,845
Interest expense															(14,197)						(8,636)
Income (loss) before income taxes															170,195						(56,324)
Provision for (benefit from) income taxes															79,474						(4,454)
Net income (loss)															$	90,721					$	(51,870)
Net income (loss) per share attributable to Class A and Class B common stockholders:
Basic															$	0.36					$	(0.20)
Diluted															$	0.35					$	(0.20)
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Basic															252,060						262,991
Diluted															256,850						262,991

(1)Amounts include stock-based compensation as follows:

									Three Months Ended September 30,
															2026						2025
Cost of revenues															$	10,989					$	19,931
Research and development															255,244						246,494
Marketing and sales															48,286						43,984
General and administrative															41,968						40,718

(2)Amounts include amortization of acquired intangible assets, as follows:

									Three Months Ended September 30,
															2026						2025
Cost of revenues															$	24,480					$	9,957
Research and development															94						94
Marketing and sales															5,965						3,599

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Atlassian Corporation

Condensed Consolidated Balance Sheets

(U.S. $ in thousands)

(unaudited)

			September 30, 2026						June 30, 2026
Assets
Current assets:
Cash and cash equivalents			$	1,120,504					$	1,239,512
Accounts receivable, net			812,333						1,269,947
Prepaid expenses and other current assets			331,969						287,663
Total current assets			2,264,806						2,797,122
Non-current assets:
Property and equipment, net			79,374						86,302
Operating lease right-of-use assets			112,143						114,059
Strategic investments			192,702						213,147
Intangible assets, net			401,718						432,258
Goodwill			2,302,451						2,302,739
Deferred tax assets			11,093						4,088
Other non-current assets			146,643						153,814
Total assets			$	5,510,930					$	6,103,529
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			$	214,349					$	262,609
Accrued expenses and other current liabilities			623,629						764,579
Deferred revenue, current portion			2,240,872						2,495,431
Operating lease liabilities, current portion			49,784						48,509
Total current liabilities			3,128,634						3,571,128
Non-current liabilities:
Deferred revenue, net of current portion			152,751						166,260
Operating lease liabilities, net of current portion			187,139						194,841
Long-term debt			990,045						989,560
Deferred tax liabilities			36,360						27,853
Other non-current liabilities			105,333						95,445
Total liabilities			4,600,262						5,045,087
Stockholders’ equity
Common stock			3						3
Additional paid-in capital			7,537,338						7,180,851
Accumulated other comprehensive loss			(28,242)						(17,034)
Accumulated deficit			(6,598,431)						(6,105,378)
Total stockholders’ equity			910,668						1,058,442
Total liabilities and stockholders’ equity			$	5,510,930					$	6,103,529

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Atlassian Corporation

Condensed Consolidated Statements of Cash Flows

(U.S. $ in thousands)

(unaudited)

									Three Months Ended September 30,
															2026						2025
Cash flows from operating activities:
Net income (loss)															$	90,721					$	(51,870)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization															39,654						24,333
Stock-based compensation															356,487						351,127
Impairment charges for leases and leasehold improvements															—						26,673
Deferred income taxes															1,792						(80)
Amortization of interest rate swap contracts															—						(5,552)
Net loss (gain) on strategic investments															6,829						(26,526)
Net foreign currency loss (gain)															(7,083)						1,831
Other															680						168
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable, net															457,976						241,361
Prepaid expenses and other assets															(41,549)						(92,680)
Accounts payable															(48,375)						(24,957)
Accrued expenses and other liabilities															(121,250)						(115,016)
Deferred revenue															(267,352)						(200,097)
Net cash provided by operating activities															468,530						128,715
Cash flows from investing activities:
Business combinations, net of cash acquired															(700)						(15,698)
Purchases of property and equipment															(5,976)						(14,112)
Purchases of marketable securities															—						(62,763)
Proceeds from maturities of marketable securities															—						31,887
Proceeds from sales of strategic investments															600						—
Net cash used in investing activities															(6,076)						(60,686)
Cash flows from financing activities:
Repurchases of Class A Common Stock															(588,010)						(252,807)
Net cash used in financing activities															(588,010)						(252,807)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash															(2,288)						(5,929)
Net decrease in cash, cash equivalents, and restricted cash															(127,844)						(190,707)
Cash, cash equivalents, and restricted cash at beginning of period															1,249,286						2,513,762
Cash, cash equivalents, and restricted cash at end of period															$	1,121,442					$	2,323,055

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Atlassian Corporation

Revenues by Deployment Options

(U.S. $ in thousands)

(unaudited)

									Three Months Ended September 30,
															2026						2025
Cloud															$	1,302,462					$	997,708
Data Center															390,706						372,648
Marketplace and other (1)															78,982						62,197
Total revenues															$	1,772,150					$	1,432,553

(1) Included in Marketplace and other is premier support revenue. Premier support consists of subscription-based arrangements for a higher level of support across different deployment options. Premier support is recognized as Subscription revenue on the consolidated statements of operations as the services are delivered over the term of the arrangement.

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Atlassian Corporation

Reconciliation of GAAP to Non-GAAP Results

(U.S. $ and shares in thousands, except percentage and per share data)

(unaudited)

									Three Months Ended September 30,
															2026						2025
Gross profit
GAAP gross profit															$	1,510,232					$	1,174,629
Plus: Stock-based compensation															10,989						18,499
Plus: Amortization of acquired intangible assets															24,480						9,957
Plus: Restructuring charges (1)															—						31,592
Non-GAAP gross profit															$	1,545,701					$	1,234,677
Gross margin
GAAP gross margin															85%						82%
Plus: Stock-based compensation															1						1
Plus: Amortization of acquired intangible assets															1						1
Plus: Restructuring charges (1)															—						2
Non-GAAP gross margin															87%						86%
Operating income
GAAP operating income (loss)															$	188,793					$	(96,337)
Plus: Stock-based compensation															356,487						349,695
Plus: Amortization of acquired intangible assets															30,539						13,650
Plus: Restructuring charges (1)															—						55,678
Non-GAAP operating income															$	575,819					$	322,686
Operating margin
GAAP operating margin															11%						(7%)
Plus: Stock-based compensation															19						25
Plus: Amortization of acquired intangible assets															2						1
Plus: Restructuring charges (1)															—						4
Non-GAAP operating margin															32%						23%
Net income
GAAP net income (loss)															$	90,721					$	(51,870)
Plus: Stock-based compensation															356,487						349,695
Plus: Amortization of acquired intangible assets															30,539						13,650
Plus: Restructuring charges (1)															—						55,678
Less: Income tax adjustments (2)															(54,259)						(91,502)
Non-GAAP net income															$	423,488					$	275,651
Net income per share
GAAP net income (loss) per share - diluted															$	0.35					$	(0.20)
Plus: Stock-based compensation															1.39						1.33
Plus: Amortization of acquired intangible assets															0.12						0.05
Plus: Restructuring charges (1)															—						0.21
Less: Income tax adjustments (2)															(0.21)						(0.35)
Non-GAAP net income per share - diluted															$	1.65					$	1.04
Weighted-average diluted shares outstanding
Weighted-average shares used in computing diluted GAAP net income (loss) per share															256,850						262,991
Plus: Dilution from dilutive securities (3)															—						1,323
Weighted-average shares used in computing diluted non-GAAP net income per share															256,850						264,314
Free cash flow
GAAP net cash provided by operating activities															$	468,530					$	128,715
Less: Capital expenditures															(5,976)						(14,112)
Free cash flow															$	462,554					$	114,603

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(1) Restructuring charges include stock-based compensation expense related to the rebalancing of resources for the three months ended September 30, 2025.

(2) We utilize a fixed long-term projected non-GAAP tax rate in our computation of the non-GAAP income tax adjustments in order to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilized a three-year financial projection that excludes the direct and indirect income tax effects of the other non-GAAP adjustments reflected above. Additionally, we considered our current operating structure and other factors such as our existing tax positions in various jurisdictions and key legislation in major jurisdictions where we operate. For fiscal years 2027 and 2026, we determined the projected non-GAAP tax rate to be 24%. This fixed long-term projected non-GAAP tax rate eliminates the effects of non-recurring and period specific items which can vary in size and frequency. Examples of the non-recurring and period specific items include but are not limited to changes in the valuation allowance related to deferred tax assets, effects resulting from acquisitions, and unusual or infrequently occurring items. We will periodically re-evaluate this long-term rate, as necessary, for significant events. The rate could be subject to change for a variety of reasons, for example, significant changes in the geographic earnings mix or fundamental tax law changes in major jurisdictions where we operate.

(3) The effects of these dilutive securities were not included in the GAAP calculation of diluted net loss per share for the three months ended September 30, 2025, because the effect would have been anti-dilutive.

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Atlassian Corporation

Reconciliation of GAAP to Non-GAAP Financial Targets

			Three Months Ending December 31, 2026
GAAP gross margin			84.5%
Plus: Stock-based compensation			0.7
Plus: Amortization of acquired intangible assets			1.3
Non-GAAP gross margin			86.5%
GAAP operating margin			4.5%
Plus: Stock-based compensation			19.8
Plus: Amortization of acquired intangible assets			1.7
Non-GAAP operating margin			26.0%

			Fiscal Year Ending  June 30, 2027
GAAP gross margin			84.5%
Plus: Stock-based compensation			0.7
Plus: Amortization of acquired intangible assets			1.3
Non-GAAP gross margin			86.5%
GAAP operating margin			5.0%
Plus: Stock-based compensation			18.9
Plus: Amortization of acquired intangible assets			1.6
Non-GAAP operating margin			25.5%

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