SYDNEY, 06 February 2026 – Atlassian Corporation (NASDAQ: TEAM) has reported a significant financial milestone in its latest quarterly results, with cloud revenue officially surpassing the $1 billion mark. Despite exceeding analyst expectations for the second quarter of fiscal year 2026, the company’s share price faced downward pressure as investors weighed strong current performance against forecasts of slowing cloud growth.
Q2 Fiscal Year 2026 Financial Highlights
In results released yesterday, Atlassian announced total revenue of $1.586 billion for the second quarter, representing a 23% increase compared to the same period last year. The company’s transition to a cloud-first model continues to be the primary driver of this growth, with cloud services now accounting for the majority of the firm’s income.
While the company beat Wall Street’s revenue expectations, the stock experienced a dip in after-hours trading. Analysts suggest this is due to a cautious outlook for the third quarter, where Atlassian forecasts revenue between $1.689 billion and $1.697 billion. Although this guidance exceeds previous consensus estimates, concerns regarding the sustainability of high-growth rates in the enterprise software sector remain.
| Metric | Q2 FY2026 Result | Year-over-Year (YoY) Change |
|---|---|---|
| Total Revenue | $1.586 Billion | +23% |
| Cloud Revenue | >$1.0 Billion | Significant Milestone |
| Earnings Per Share (EPS) | $1.14 (Expected) | Up from $0.96 (Q2 FY2025) |
| Annual Revenue Growth Forecast | ~22% | Revised up from 20.8% |
Corporate Evolution and Leadership
Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian has evolved from a Sydney-based startup into a global leader in collaboration software. The company’s core suite—including Jira, Confluence, and Trello—remains central to the workflow of software development and IT teams worldwide.
The company is currently navigating a significant leadership transition. Following Scott Farquhar’s decision to step down as co-CEO in April 2024, Mike Cannon-Brookes has taken the helm as the sole Chief Executive Officer. Recent regulatory filings show that Cannon-Brookes sold 7,665 shares earlier this week, though he remains the company’s largest individual shareholder and has publicly reaffirmed his long-term commitment to the firm.
AI and Infrastructure Strategy
Atlassian is heavily investing in its “Teamwork Graph” and AI-driven architecture, specifically through its Rovo and MCP (Multi-agent Control Plane) platforms. These tools are designed to integrate AI into the daily workflows of enterprise teams, helping them navigate complex data across the Atlassian ecosystem.
The company’s cloud architecture is built on a sophisticated Platform as a Service (PaaS) environment, split between “Micros” and “non-Micros” infrastructure. This multi-tenant cloud approach is intended to provide the scalability required for its growing list of enterprise clients, many of whom have recently migrated from legacy on-premise servers.
Frequently Asked Questions
What are Atlassian’s primary software products?
Atlassian is best known for Jira (project and issue tracking), Confluence (content collaboration), Trello (visual project management), and Bitbucket (source code management).
Who are the founders of Atlassian?
The company was founded in 2002 by Mike Cannon-Brookes and Scott Farquhar. As of 2026, Mike Cannon-Brookes serves as the sole CEO following Farquhar’s departure from the co-CEO role in 2024.
Why did Atlassian’s stock drop despite beating earnings?
While Atlassian exceeded revenue and EPS expectations for Q2 FY2026, the stock price reacted to projections of slowing cloud growth and broader market volatility within the software-as-a-service (SaaS) sector.
Is Atlassian an Australian or American company?
Atlassian is an Australian-American company. While it was founded and is headquartered in Sydney, Australia, it is incorporated in the United States and listed on the NASDAQ exchange under the ticker “TEAM.”