- Q3 income of US$1.79B, up 32%
- Cloud income of US$1.13bn, up 29%
- Q3 web loss $98.4m, up 29%
US-listed office software program firm Atlassian (Nasdaq: TEAM), beat market expectations on underlying revenue and gross sales within the third quarter to March 31, with income rising by practically a 3rd (32%) to US$1.79 billion (A$2.48B).
Atlassian shares, which have been hammered in 2026, rose greater than 15% in prolonged buying and selling following the Q3 outcomes. The software program enterprise, which has been pushing onerous on AI implementation amid job losses, elevated its annual income forecast
The enterprise continued its two-decade custom of losses. The Q3 working loss was US$56.3m, up from US$12.5m 12 months in the past, taking the working margin to (3%) in contrast with (1%) within the 2025 March quarter.
Working loss consists of restructuring fees of US$223.8m related to rebalancing assets and consolidating leases, negatively impacting the working margin by 12%.
The web loss was US$98.4m for quarter, a rise of 29% on the $70.8m web loss in Q3 final yr.
However Atlassian reported a non-GAAP adjusted revenue of US$456.5m, up from $261.5m on Q3 2025. The non-GAAP working revenue was $607.2 million for Q3 at a 34% working margin, a serious improve on $348.3m final yr.
Money and money equivalents on the finish of the third quarter of fiscal yr 2026 totalled US$1.1 billion.
AI-powered now
Atlassian’s CEO and cofounder, Mike Cannon-Brookes, who introduced in March that 1600 jobs would go in an AI restructure, mentioned the corporate has sturdy momentum, and is concentrated on executing its key progress priorities: Enterprise, AI, and System of Work.
“Our sturdy Q3 outcomes present the ability of our technique in motion, with complete income rising 32% year-over-year to $1.8 billion, as clients signal greater, longer-term commitments, and join their groups and workflows on our AI-powered platform,” he mentioned.
“Service Assortment eclipsed $1 billion in ARR, and is rising over 30% year-over-year, because it continues to take share and reinforce our conviction within the long-term progress alternative of the Atlassian System of Work.”
The corporate’s CFO James Chuong pointed to cloud income progress rising 29% as clients continued sturdy seat growth in Jira and adoption of Teamwork Assortment for its elevated AI capabilities.
Atlassian is forecasting This autumn income of US$1.65-1.66bn to ship annual income progress of round 24%, up from its earlier prediction of twenty-two%.
Cannon-Brookes mentioned in his shareholder’s letter that their increasing inside their largest clients, to ship AI that’s creating actual worth.
“In a world the place people will run groups of brokers, context is the one anchor to keep away from chaos. So we’re asking
our clients – are you constructing an organization that forgets or one which compounds? And we consider that
reply will essentially determine which organizations are actually AI-native,” he mentioned.
“Our clients aren’t simply selecting software program, they’re selecting the sort of firm they wish to turn out to be.
That’s what provides us confidence that our progress is sturdy and that the AI transformation is increasing our
long-term alternative.”
