Research · Sep 3, 2026
[TEAM] Atlassian Thesis 2026: Cloud Migration and AI Integration Sustain Twenty-Percent Revenue Growth
Atlassian Corporation FY25 (Jun year-end) revenue $5.22B (+20%); op income -$130M (vs -$117M FY24); NI -$257M (improving from -$301M); EPS -$0.98 (improving from -$1.16). FCF $1.42B (essentially flat with FY24). Cloud net revenue retention rate 120%. Q4 record number of $1M+ ACV deals (+2x YoY). Teamwork Collection momentum exceeded expectations. Google Cloud partnership announced (cloud transformation + advanced AI solutions). Many enterprises consolidated onto Atlassian Cloud platform. Anu (President) transitioning at end of December (after ~12 years). $-779M FY25 buyback (+97% vs FY24). FY26 guide: consistent with prior approach (conservative + risk-adjusted on macroeconomic uncertainty + enterprise go-to-market evolution risks); confident in 20% compounded annual growth FY24-FY27 target. Cash flow correlated to non-GAAP operating income trends; non-GAAP op margin to free cash flow margin ~500bp difference over time.