Overview
- Atlassian reported fiscal fourth-quarter results Thursday that delivered a GAAP operating profit of $211 million and a 12% quarterly operating margin after years of GAAP losses.
- Quarterly revenue rose 28% year over year to $1.77 billion with cloud sales up 31% to $1.2 billion and remaining performance obligations climbing 44% to $4.8 billion, signaling larger and longer customer commitments.
- Management guided fiscal 2027 to slower growth, saying subscription ARR should rise about 18% and total revenue about 13% while targeting roughly a 4.5% operating margin for the year.
- On non-GAAP measures adjusted operating margin expanded to 36%, adjusted EPS rose sharply and free cash flow increased 32% to $475 million, supporting management’s message of operational discipline.
- The market pushed the stock more than 30% higher as investors prioritized durable profitability and cash generation over near-term revenue acceleration, a shift that could reshape valuation norms for large SaaS companies.