Atlassian has reported first-quarter fiscal 2027 revenue of US$1.772 billion for the three months ended 30 September 2026, a 24% increase on the same period a year earlier, as the company pointed to continued growth in cloud subscriptions.
Cloud revenue rose 31% year-on-year to US$1.302 billion, while subscription annual recurring revenue (ARR) reached US$6.812 billion, up 23% year-on-year. Remaining performance obligations (RPO) increased 44% to US$4.746 billion.
On a GAAP basis, Atlassian reported operating income of US$189 million, compared with an operating loss of US$96 million in the prior-year quarter, and a GAAP operating margin of 11% compared with (7%). GAAP net income was US$91 million versus a net loss of US$52 million a year earlier, with diluted earnings per share of US$0.35 compared with a loss per share of US$0.20.
On a non-GAAP basis, operating income was US$576 million, up from US$323 million in the prior-year quarter, with a non-GAAP operating margin of 32% compared with 23%. Free cash flow for the quarter was US$463 million, with a free cash flow margin of 26%.
Cash and cash equivalents at the end of the quarter totalled US$1.121 billion, according to the company’s results.
“Q1 was a strong start to fiscal 2027, with RPO up 44% and Teamwork Collection customers up 7x year-over-year,” Atlassian CEO and co-founder Mike Cannon-Brookes said in the announcement.
Atlassian CFO James Chuong said “Subscription ARR grew 23% year-over-year and Cloud revenue grew 31% year-over-year,” adding that GAAP operating margin expanded to 11% and free cash flow totalled US$463 million.
In an update on its business, Atlassian said its “Service Collection” has more than 70,000 customers and over US$1 billion in ARR, which the company said is growing at more than 30% year-over-year.
Atlassian also outlined product and platform updates discussed at its Team ’26 Europe event in Amsterdam, including what it calls an “Agentic Multiplayer Protocol (AMP)”, a rebuilt “Atlassian MCP Server”, and governance-related features for enterprise use of AI.
The company said it has expanded its strategic partnership with OpenAI and announced timelines for U.S. public sector authorisations, including an intention to accelerate its IL5 submission forward by six months to July 2028, with FedRAMP High to follow in January 2029. It also said Rovo would be submitted for FedRAMP Moderate authorisation in Atlassian Government Cloud by June 2027.
Looking ahead, Atlassian provided revenue guidance for the second quarter of fiscal 2027 of between US$1.825 billion and US$1.835 billion. It forecast cloud revenue growth of approximately 27% year-on-year, while data center revenue growth is expected to decline by approximately 14%.
For fiscal year 2027, Atlassian said it expects subscription ARR growth of approximately 18.5% year-on-year and total revenue growth of approximately 13.75%. The company forecast cloud revenue growth of approximately 26%, and said it expects data center revenue growth to decline by approximately 16%.
A shareholder letter and financial statement tables were published on Atlassian’s investor relations website.
