Atlassian reported revenue of $1,586 million for the quarter, a 23% increase year-over-year.

Atlassian Corporation (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced financial results for its second quarter ended December 31, 2025. 

"We closed out Q2 with incredible momentum across the Atlassian platform and achieved some impressive milestones along the way. We delivered our first-ever $1 billion Cloud revenue quarter, which grew 26% year-over-year, crossed 350,000 customers, and Rovo surpassed 5 million monthly active users," said Mike Cannon-Brookes, Atlassian's CEO and co-Founder. "Companies from the largest enterprises in the world, to the most innovative startups, rely on the Atlassian platform every day to power workflows across their organizations and unleash teamwork and knowledge at scale."

"We delivered another strong quarter of enterprise sales and partner execution, which drove total revenue up 23% year-over-year to $1.6 billion, surpassing $6 billion in annual run-rate revenue," said Joe Binz, Atlassian's CFO. "With RPO up 44% year-over-year to $3.8 billion, our investments across enterprise, AI and system of work are yielding results and deeper, long-term customer commitments to the Atlassian platform."

Second Quarter Fiscal Year 2026 Financial Highlights:

On a GAAP basis, Atlassian reported:

Revenue: Total revenue was $1,586.3 million for the second quarter of fiscal year 2026, up 23% from $1,286.5 million for the second quarter of fiscal year 2025.

Operating Loss and Operating Margin: Operating loss was $47.7 million for the second quarter of fiscal year 2026, compared with operating loss of $57.5 million for the second quarter of fiscal year 2025. Operating margin was (3%) for the second quarter of fiscal year 2026, compared with (4%) for the second quarter of fiscal year 2025.

Net Loss and Net Loss Per Diluted Share: Net loss was $42.6 million for the second quarter of fiscal year 2026, compared with net loss of $38.2 million for the second quarter of fiscal year 2025. Net loss per diluted share was $0.16 for the second quarter of fiscal year 2026, compared with net loss per diluted share of $0.15 for the second quarter of fiscal year 2025.

Balance Sheet: Cash and cash equivalents plus marketable securities at the end of the second quarter of fiscal year 2026 totaled $1.6 billion.

On a non-GAAP basis, Atlassian reported:

Operating Income and Operating Margin: Operating income was $430.2 million for the second quarter of fiscal year 2026, compared with operating income of $335.1 million for the second quarter of fiscal year 2025. Operating margin was 27% for the second quarter of fiscal year 2026, compared with 26% for the second quarter of fiscal year 2025.

Net Income and Net Income Per Diluted Share: Net income was $320.9 million for the second quarter of fiscal year 2026, compared with net income of $255.6 million for the second quarter of fiscal year 2025. Net income per diluted share was $1.22 for the second quarter of fiscal year 2026, compared with net income per diluted share of $0.96 for the second quarter of fiscal year 2025.

Free Cash Flow: Cash flow from operations was $177.8 million and free cash flow was $168.5 million for the second quarter of fiscal year 2026. Free cash flow margin for the second quarter of fiscal year 2026 was 11%.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below, under the heading "About Non-GAAP Financial Measures."

Recent Business Highlights:

A Leader in the 2025 Gartner® Magic Quadrant™ for Marketing Work Management Platforms: Atlassian was recognized as a Leader in the 2025 Gartner Magic Quadrant for Marketing Work Management Platforms1 for the second consecutive year, and received the highest placement in Completeness of Vision. Atlassian's Marketing Work Management solution is delivered through its Teamwork Collection, which includes Jira, Confluence, Loom, and Rovo, allowing marketing teams to collaborate seamlessly, unleash creativity, and partner with AI agents to power workflows.

A Leader in the 2025 Gartner® Magic Quadrant™ for Collaborative Work Management: Atlassian was recognized as a Leader in the 2025 Gartner Magic Quadrant for Collaborative Work Management2. Atlassian's AI-powered system of work, delivered through its Teamwork Collection, connects work, knowledge, and goals—bringing together technical and business teams to standardize execution, strengthen productivity, and drive continuous improvement across the enterprise. Leading global organizations trust Teamwork Collection to execute faster, align teams, and deliver better outcomes at scale—while preparing for the future of work.

A Leader in The Forrester Wave™: Enterprise Service Management Platforms, Q4 2025: Atlassian was recognized as a Leader in The Forrester Wave: Enterprise Service Management Platforms3. 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 deliver exceptional service experiences. Today, more than 65,000 organizations, including more than half of the Fortune 500, rely on Jira Service Management to enable faster collaboration and resolution for their teams and customers.

Customers with >$10,000 in Cloud ARR: Atlassian ended its second quarter of fiscal year 2026 with 55,369 customers with greater than $10,000 in Cloud annualized recurring revenue (Cloud ARR), an increase of 12% year-over-year.

Recognized on the Forbes World's Best Employers 2025 List: Atlassian was recognized on the Forbes World's Best Employers 2025 - Top Companies To Work For list. This achievement highlights Atlassian's commitment to fostering an innovative and collaborative culture that drives technological advancement and delivers outstanding value to customers, partners, and employees.

Board of Directors Update: Atlassian appointed Anil Sabharwal to its Board of Directors. Anil is Vice President of Product at Google and has held various senior leadership roles at the company for 17 years. Anil is a seasoned technology entrepreneur and innovator with a deep understanding of both technology and its long-term value creation. He brings significant experience building beloved products such as Google Photos, Google Chrome, Google Drive, and more. Anil's extensive technology experience will be invaluable as Atlassian continues to power human-AI collaboration for millions of users worldwide.

Financial Targets:

Atlassian is providing its financial targets as follows:

Third Quarter Fiscal Year 2026:

Total revenue is expected to be in the range of $1,689 million to $1,697 million.

Cloud revenue growth year-over-year is expected to be approximately 23.0%.

Data Center revenue growth year-over-year is expected to be approximately 33.5%.

Marketplace and other revenue growth year-over-year is expected to be approximately 5.0%.

Gross margin is expected to be approximately 85.5% on a GAAP basis and approximately 88.0% on a non-GAAP basis.

Operating margin is expected to be approximately 0.0% on a GAAP basis and approximately 27.5% on a non-GAAP basis.

Fiscal Year 2026:

Total revenue growth year-over-year is expected to be approximately 22.0%.

Cloud revenue growth year-over-year is expected to be approximately 24.3%.

Data Center revenue growth year-over-year is expected to be approximately 20.0%.

Marketplace and other revenue growth year-over-year is expected to be approximately 6.0%.

Gross margin is expected to be approximately 84.0% on a GAAP basis and approximately 87.0% on a non-GAAP basis.

Operating margin is expected to be approximately (3.0%) on a GAAP basis and approximately 25.5% on a non-GAAP basis.

For additional commentary regarding financial targets, please see Atlassian's second quarter fiscal year 2026 shareholder letter dated February 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.

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