Atlassian Releases Q1 Fiscal Year 2026 Financial Results

Atlassian Corporation, a prominent provider of productivity and collaboration software, has released its financial results for the first quarter of fiscal year 2026, ending September 30, 2025.

Atlassian Q1 Fiscal Year 2026 Financial Performance

The company reported a total revenue of $1.43 billion, reflecting a 21% increase compared to $1.19 billion in the same quarter of the previous year. Cloud revenue reached $998 million, marking a significant 26% year-over-year growth. Monthly active users of Atlassian’s AI capabilities surged to over 3.5 million, a 50% increase quarter-over-quarter. However, Atlassian also faced an operating loss of $96.3 million, up from a loss of $32 million in the prior year’s first quarter.

Key Financial Highlights

• Total Revenue: $1,432.6 million (Q1 FY26) vs. $1,187.8 million (Q1 FY25)
• Cloud Revenue: $998 million, up 26% YoY.
• Operating Loss: $96.3 million (Q1 FY26) vs. $32 million (Q1 FY25).
• Net Loss: $51.9 million, compared to $123.8 million in the previous year.
• Net Loss per Diluted Share: $0.20 for Q1 FY26, down from $0.48 in Q1 FY25.
• Cash Position: $2.8 billion in cash and equivalents at the end of Q1 FY26.

Business Developments

Atlassian’s recent initiatives, such as the introduction of Atlassian Ascend, are aimed at enhancing customer transitions to cloud-based services. This strategy marks a significant shift as the company plans to sunset its Data Center products. In a move to bolster its AI offerings, Atlassian also announced the acquisition of The Browser Company of New York, known for the Dia and Arc browsers, and DX, an engineering intelligence platform.

These acquisitions reflect Atlassian’s commitment to improving user experiences through innovation and enhanced capabilities in the AI domain.

Recognition and Future Outlook

Atlassian was recognized as a Leader in the 2025 Gartner Magic Quadrant for DevOps Platforms and featured in Fortune’s Future 50 List, highlighting its stability and adaptability in a rapidly changing market. The company ended the quarter with 53,017 customers generating over $10,000 in annual recurring revenue, a 13% increase year-over-year.

Future Financial Goals

For the second quarter of fiscal year 2026, Atlassian anticipates total revenue between $1.54 billion and $1.54 billion, with continued growth in cloud services. The projected operating margin is expected to be around (5.0%) on a GAAP basis.

In October, Atlassian’s Board authorized a share repurchase program aimed at returning $2.5 billion in capital to shareholders. The leadership team will also see changes, with Tamar Yehoshua joining as Chief Product and AI Officer in November 2025 and Joe Binz retiring as CFO in June 2026.

Atlassian’s ongoing investments in AI and cloud solutions position the company for sustained growth and competitiveness in the tech landscape.