TEAM Q1 2026 Earnings

Call Details

• Call Title: Atlassian Corporation Q1 2026 Earnings Call
• Date: October 30, 2025 at 9:00 PM UTC
• Management Team:
  • Martin Lam (Head of Investor Relations)
  • Mike Cannon-Brookes (Chief Executive Officer)
  • Joe Binz (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue in Q1 grew 21% year-over-year to $1.4 billion.
• Cloud revenue grew 26% year-over-year to $998 million.
• Remaining Performance Obligations (RPO) grew 42% year-over-year to $3.3 billion.
• Company reported increased bookings and stronger CRPO performance in Q1 relative to prior expectations.
• Net expansion remained strong with a cited net expansion rate of 120% as stated on the call.
• Cloud migrations materially impacted revenue timing and marketplace revenue due to differing recognition and take rates.

Guidance

• Cloud revenue outlook was raised by 1.5 percentage points to 22.5% year-over-year to reflect stronger-than-expected migrations.
• Company stated migrations are expected to contribute a mid to high single digit percentage to cloud revenue growth in FY26.
• The shift from data center to cloud reduced the non-end-of-life organic revenue outlook by 50 basis points due to timing and marketplace take-rate effects.
• Migrations upside is expected to land in the back half of the fiscal year given the data center expiration base.
• Company reiterated its long-term three-year target of 20% CAGR growth that was previously provided at the end of FY24.
• Executives stated the FY26 business is fundamentally stronger than it was 90 days ago, driven by Q1 outperformance and accelerated migrations.