01—Abstract
Summary
Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Atlassian Corporation (NASDAQ: TEAM) furnished an 8-K on April 30, 2026 under Item 2.02 containing its press release and shareholder letter for the third quarter of fiscal year 2026, ended March 31, 2026.
Total revenue was $1,787.0 milliona, up 32% year-over-year from $1,356.7 million, with Cloud revenue of $1,132.4 million, up 29%. Cloud growth accelerated, and Data Center revenue grew 44% year-over-year, which the company attributes largely to a Data Center end-of-life term license revenue recognition impact and pull-forward purchasing. Remaining performance obligations rose 37% to $4.0 billion.
Profitability was mixed on a GAAP basis. The company reported an operating loss of $56.3 millionb (operating margin of (3%)) and a net loss of $98.4 million, or $0.38 per diluted share, after restructuring charges of $223.8 million tied to rebalancing resources and consolidating leases. On a non-GAAP basis, operating income was $607.2 million (34% margin) and non-GAAP net income was $456.5 million, or $1.75 per diluted share.
Operating cash flow was $567.5 millionc and free cash flow was $561.3 million, a 31% free cash flow margin. Cash and cash equivalents totaled $1.1 billion at quarter end. For the fourth quarter of fiscal 2026, Atlassian guided to total revenue of $1,653 million to $1,661 million, GAAP operating margin of approximately 4.5%, and non-GAAP operating margin of approximately 30.5%.
For full-year fiscal 2026, it expects total revenue growth of approximately 24.0%d, Cloud growth of approximately 26.5%, and GAAP operating margin of approximately (2.0%). The shareholder letter notes that Data Center revenue growth is expected to decelerate meaningfully in FY27 as the end-of-life impact is lapped.
02—Key points
Key Highlights
- Total revenue of $1,787.0 million, up 32% year-over-year; Cloud revenue of $1,132.4 million, up 29%
- Remaining performance obligations of $4.0 billion, up 37% year-over-year; current RPO of $2.8 billion, up 22%
- GAAP operating loss of $56.3 million (operating margin of (3%)) and net loss of $98.4 million ($0.38 per diluted share), including $223.8 million of restructuring charges
- Non-GAAP operating income of $607.2 million (34% margin) and non-GAAP net income of $456.5 million ($1.75 per diluted share)
- Free cash flow of $561.3 million, a 31% margin; the company repurchased 11.8 million shares for $1.0 billion in the quarter
- Q4 FY26 guidance: total revenue of $1,653 million to $1,661 million; full-year FY26 total revenue growth of approximately 24.0%
- Customers with over $10,000 in Cloud ARR reached 55,913, up 10% year-over-year; Service Collection surpassed $1 billion in ARR, growing over 30%
03—Questions
Frequently Asked Questions
Why did Data Center revenue grow 44% while the company's overall outlook implies slower Data Center growth ahead?
The shareholder letter attributes Data Center growth of 44% to the Data Center end-of-life (EOL) revenue recognition impact, which increases the share of contract value recognized upfront as term license revenue, along with pricing and pull-forward of customer purchasing from future periods. The company expects Data Center revenue growth of approximately 8.5% in Q4 FY26 and says FY27 Data Center growth will meaningfully decelerate as it laps this impact and the pull-forward.
What drove the GAAP net loss this quarter?
The GAAP net loss of $98.4 million includes restructuring charges, net of income tax effect, totaling $223.1 million, which increased the net loss per diluted share by $0.85. The restructuring charges of $223.8 million relate to severance and other termination benefits of $170.2 million and lease consolidation of $53.7 million.
What does management expect for profitability in the coming periods?
For Q4 FY26, the company expects GAAP operating margin of approximately 4.5% and non-GAAP operating margin of approximately 30.5%. It says GAAP operating margin will benefit by approximately 7 percentage points from the Q3 restructuring actions, and it plans to reinvest a portion of these savings in FY27 to self-fund investment in AI and enterprise sales. For full-year FY26, GAAP operating margin is expected to be approximately (2.0%).
How is the company using its cash?
Cash and cash equivalents were $1.1 billion at March 31, 2026, after the company completed business combinations for $1.23 billion in the nine-month period. In Q3 it repurchased 11.8 million shares totaling $1.0 billion, and the shareholder letter notes $2.2 billion remains outstanding under its repurchase authorization. The company also expects the diluted share count to decrease by approximately 2.5% in FY26.
04—Continue