Quarterly ResultApr 30, 2026, 04:26 PM
TEAM Q3 Revenue +32% to $1.79B; Non-GAAP EPS $1.75
AI Summary
Atlassian Corp (TEAM) announced strong third-quarter fiscal year 2026 results, with total revenue increasing 32% to $1.79 billion and cloud revenue up 29% to $1.13 billion. Non-GAAP diluted EPS rose to $1.75, and non-GAAP operating margin expanded to 34%. However, the company reported a GAAP operating loss of $56.3 million and a net loss of $98.4 million, primarily due to $223.8 million in restructuring charges aimed at accelerating GAAP profitability and investing in AI and enterprise sales. The company highlighted significant momentum in its AI-powered platform, with Service Collection ARR exceeding $1 billion and Rovo customers showing double the ARR growth rate.
Key Highlights
- Total revenue increased 32% year-over-year to $1,787 million.
- Cloud revenue grew 29% year-over-year to $1,132 million.
- Non-GAAP diluted EPS was $1.75, up from $0.97 in Q3 FY25.
- Non-GAAP operating margin was 34%, compared to 26% in Q3 FY25.
- Remaining performance obligations (RPO) grew 37% year-over-year to $3,996 million.
- Service Collection ARR surpassed $1 billion, growing over 30% year-over-year.
- Restructuring charges of $223.8 million negatively impacted GAAP operating margin by 12%.
- Forecasts FY26 total revenue growth of approximately 24.0% year-over-year.