- Q3 revenue of US$1.79B, up 32%
- Cloud revenue of US$1.13bn, up 29%
- Q3 net loss $98.4m, up 29%
US-listed workplace software company Atlassian (Nasdaq: TEAM), beat market expectations on underlying profit and sales in the third quarter to March 31, with revenue growing by nearly a third (32%) to US$1.79 billion (A$2.48B).
Atlassian shares, which have been hammered in 2026, rose more than 15% in extended trading following the Q3 results. The software business, which has been pushing hard on AI implementation amid job losses, increased its annual revenue forecast
The business continued its two-decade tradition of losses. The Q3 operating loss was US$56.3m, up from US$12.5m 12 months ago, taking the operating margin to (3%) compared with (1%) in the 2025 March quarter.
Operating loss includes restructuring charges of US$223.8m associated with rebalancing resources and consolidating leases, negatively impacting the operating margin by 12%.
The net loss was US$98.4m for quarter, an increase of 29% on the $70.8m net loss in Q3 last year.
But Atlassian reported a non-GAAP adjusted profit of US$456.5m, up from $261.5m on Q3 2025. The non-GAAP operating income was $607.2 million for Q3 at a 34% operating margin, a major increase on $348.3m last year.
Cash and cash equivalents at the end of the third quarter of fiscal year 2026 totalled US$1.1 billion.
AI-powered now
Atlassian’s CEO and cofounder, Mike Cannon-Brookes, who announced in March that 1600 jobs would go in an AI restructure, said the company has strong momentum, and is focused on executing its key growth priorities: Enterprise, AI, and System of Work.
“Our strong Q3 results show the power of our strategy in action, with total revenue growing 32% year-over-year to $1.8 billion, as customers sign bigger, longer-term commitments, and connect their teams and workflows on our AI-powered platform,” he said.
“Service Collection eclipsed $1 billion in ARR, and is growing over 30% year-over-year, as it continues to take share and reinforce our conviction in the long-term growth opportunity of the Atlassian System of Work.”
The company’s CFO James Chuong pointed to cloud revenue growth rising 29% as customers continued strong seat expansion in Jira and adoption of Teamwork Collection for its increased AI capabilities.
Atlassian is forecasting Q4 revenue of US$1.65-1.66bn to deliver annual revenue growth of around 24%, up from its earlier prediction of 22%.
Cannon-Brookes said in his shareholder’s letter that their expanding within their largest customers, to deliver AI that’s creating real value.
“In a world where humans will run teams of agents, context is the only anchor to avoid chaos. So we’re asking
our customers – are you building a company that forgets or one that compounds? And we believe that
answer will fundamentally decide which organizations are truly AI-native,” he said.
“Our customers aren’t just choosing software, they’re choosing the kind of company they want to become.
That’s what gives us confidence that our growth is durable and that the AI transformation is expanding our
long-term opportunity.”
