Atlassian Corporation TEAM used its fourth-quarter fiscal 2026 earnings call to emphasize cloud growth, enterprise deal activity and deeper AI adoption. CEO and Co-Founder Mike Cannon-Brookes said customers are committing more broadly to the platform as Rovo and the Teamwork Graph become embedded in workflows.
The call also set up a measured fiscal 2027 outlook. CFO James Chuong said guidance balances strong demand signals with macroeconomic, fiscal-policy and geopolitical uncertainty.
TEAM Enterprise Demand Accelerates
CEO Cannon-Brookes said Atlassian posted record fourth-quarter deal activity at the $1 million, $3 million and $5 million levels. Customers with at least $3 million of ARR grew more than 50% year over year, while the $5 million cohort grew more than 70%.
TEAM’s fourth-quarter fiscal 2026 adjusted earnings of $1.87 per share topped the Zacks Consensus Estimate of $1.48. Total revenues reached $1.77 billion, beating the Zacks Consensus Estimate of $1.66 billion by 6.50%.
CEO Cannon-Brookes also highlighted 44% year-over-year RPO growth to $4.8 billion and a GAAP operating margin of 12%, tying the results to enterprise, AI and Atlassian's System of Work.
Atlassian Makes AI a Core Growth Engine
CEO Cannon-Brookes said Rovo is used by more than 80% of the Fortune 500, while Rovo-assisted actions rose 50% sequentially. Rovo adopters are growing ARR at more than twice the rate of non-adopters.
The Teamwork Graph spans more than 200 billion objects and connections. CEO Cannon-Brookes said agents grounded in that context can deliver up to 44% more accurate answers while using 48% fewer tokens.
A BTIG analyst asked about buying behavior. CEO Cannon-Brookes said AI and the Teamwork Graph are among the top reasons customers cite for moving to cloud and upgrading to Teamwork Collection.
TEAM Sets FY27 Guide With Prudence
CFO James Chuong said Atlassian is guiding fiscal 2027 subscription ARR growth to 18%, compared with 23% exiting fiscal 2026. He characterized the forecast as prudent rather than a change in business momentum.
A Morgan Stanley analyst asked about the deceleration. CFO Chuong said management is allowing more prudence in the second half because the year is early and the external environment remains uncertain.
CFO Chuong also noted fiscal 2026 ARR growth benefited by about one percentage point from the DX acquisition. Atlassian expects to lap that contribution while continuing to scale its enterprise go-to-market motion.
Atlassian Sees Cloud Strength From Cross-Sell
A Wells Fargo analyst asked what drove cloud outperformance. CFO Chuong said Data Center migrations tracked expectations and did not drive the $49 million cloud revenue beat.
CFO Chuong identified cross-sell and seat expansion as the main drivers. He pointed to strong adoption of Service Collection and Teamwork Collection, with the latter providing more Rovo credits and broader AI access.
CFO Chuong also said Teamwork Collection customers have four to five times more paid seats per instance than standalone Jira or Confluence customers. Seat expansion remained broad-based.
TEAM Holds Margins as AI Usage Rises
A UBS analyst asked about margin resilience as AI usage expanded. CFO Chuong pointed to disciplined hiring, resource reallocation and moderation in stock-based compensation while maintaining investment in AI and enterprise sales.
CFO Chuong said Atlassian is targeting a 6.5% GAAP operating margin for fiscal Q1 2027 and 4.5% for full-year fiscal 2027, establishing a path toward expanding GAAP profitability.
CEO Cannon-Brookes added that Atlassian's multiyear AI gateway strategy and model blending are helping control serving costs even as usage rises. He cited a 400% increase in MCP calls during the quarter.
Atlassian Frames Enterprise Gains as Durable
A Wolfe Research analyst asked what unlocked the stronger enterprise motion. CEO Cannon-Brookes said there was no single catalyst, pointing to years of improvement in compliance, cloud scale, sales and customer success.
CFO Chuong said Atlassian remains early in enterprise penetration despite its Fortune 500 presence. Management's closing posture centered on AI investment, enterprise relationships and converting platform adoption into larger, longer customer commitments.
TEAM Zacks Signals Show Mixed Profile
TEAM carries a Zacks Rank #4 (Sell) at present. Its Growth Score of A is favorable, while the Value Score of F and Momentum Score of F are weak; the combined VGM Score is C.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Under the Zacks framework, Style Scores are most effective when paired with Zacks Rank #1 or 2 (Buy) stocks. TEAM's Growth Score is strong, but its current Zacks Rank and weaker Value and Momentum scores create a mixed profile. The Zacks Rank can change as earnings estimates are revised after the latest results.
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Atlassian Corporation PLC (TEAM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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