Atlassian Q2 2026 earnings: cloud revenue tops $1 billion for the first time

February 6, 2026 · Published August 7, 2026

Atlassian's revenue grew 23% year-over-year to $1.59 billion, led by cloud subscriptions crossing $1 billion for the first time, even as the company posted a small accounting loss.

Figures as reported by the company to the SEC for the quarter ended December 31, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.

Key takeaways

• Cloud subscription revenue reached $1.067 billion, up 26% from a year earlier — the first time Atlassian’s cloud business topped $1 billion in a single quarter — while the total customer count passed 350,000, showing continued migration from older on-premise software to cloud subscriptions.
• Rovo, Atlassian’s AI assistant built into its work-management tools, passed 5 million monthly active users. Management said customers who use Rovo increase their spending with Atlassian faster than those who don’t, framing AI as a driver of additional revenue rather than just an added expense.
• On a strict accounting basis (GAAP) Atlassian posted an operating loss of about $48 million, narrower than the loss a year earlier, while its adjusted (non-GAAP) operating margin — which strips out non-cash items like employee stock compensation — was a positive 27%. That gap, and the trailing-year operating and net margins both sitting slightly negative (around -3.5% to -3.7%), reflect a company still spending heavily on growth and stock-based pay even as its underlying (gross) margin stays high near 84%.
• Remaining performance obligations — revenue already contracted with customers but not yet billed or delivered, a gauge of future business already lined up — rose 44% year-over-year to roughly $3.8 billion, pointing to continued demand building in the pipeline.
• Free cash flow (cash generated after running the business) fell 51% year-over-year to $169 million, and operating cash flow dropped 49% to $178 million, a reminder that cash generation can swing quarter to quarter even for a fast-growing, high-margin software business.
• Alongside the results, Atlassian reaffirmed its financial targets for the following quarter and for the full fiscal year, meaning the quarter’s results did not change management’s outlook for the rest of the year.
• CEO and co-founder Mike Cannon-Brookes highlighted the quarter’s milestones directly, saying Atlassian delivered its “first-ever $1 billion Cloud revenue quarter” while Rovo surpassed 5 million monthly active users.

Q2 2026 in context

Figures for the quarter ended Dec 2025 and the quarter ended Dec 2024, as reported to the SEC.

How the stock took it

Atlassian Corp closed at $98.41 on Feb 5, 2026, the last session before the report, and at $91.23 on Feb 9, 2026, the first session after it — -7.3% across the report.

Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.

Financial history →

Sources: company report