Aug 6, 2026 earnings call — AI adoption and enterprise cloud growth
Q4 total revenue grew 28% to $1.8 billion, with cloud revenue up 31% to $1.2 billion.
Revenue $1.8B (est $1.7B) · EPS $1.87 (est $1.50)
Key quotes
"Rovo assisted actions grew 50% over the prior quarter and Rovo adopters that is customers using Rovo continue to grow their ARR at more than twice the rate of non-adopters."
"In the enterprise, we had an all-time record quarter at the $1 million level, the $3 million level and the $5 million level of deals."
"In fact, we're seeing over 3x increase in Agentic automation in Service collection as customers are continuing to deploy more agents beyond IT teams in HR and legal and finance and marketing teams."
Analyst Q&A 10
subscription ARR growth guidance
Q (Adam Wood · Morgan Stanley): He asked why subscription ARR growth guidance was lower and how much came from data center versus other factors like moderated expansion and macro caution.
A: Management said they were pleased with the quarter and that sub-ARR grew 23% year-over-year. They said the FY '27 guide is more prudent because of macro, fiscal policy and geopolitical uncertainty, and noted FY '26 growth benefited by approximately 1 point from the DX acquisition.
"First, I would highlight that we're really pleased to see the strength that we saw in the quarter, printing ARR growth, sub-ARR growth of 23% year-over-year." — James Chuong (CFO)
how Teamwork Graph helps customers
Q (Allan M. Verkhovski · U.S. Bancorp): He asked how the reported efficiency and token savings from the Teamwork Graph appear in customer deployments and how they change buying and sales cycles.
A: Management said every customer conversation includes Teamwork Graph and AI and that customers are upgrading or expanding to the Teamwork Collection. They said better answers from the graph lead to lower token use and faster results, which drives upgrades and expansion.
"Fundamentally, the better answers, the quality of information across all those applications we can give to your agents, the less token they consume and the less time it takes them to get to an equivalent quality enter." — Michael Cannon-Brookes (CEO)
drivers of cloud revenue beat
Q (Ryan MacWilliams · Wells Fargo): He asked what drove the cloud strength in Q4 — more seat additions or more Teamwork Collection — and if guidance philosophy changed for the full year.
A: Management said their guidance philosophy did not change. They said DC migrations were in line with expectations and the outperformance was driven mainly by cross-sell and seat expansion, plus strong uptake in Service Collection and Teamwork Collection.
"So the 2 primary drivers here of the outperformance were really the cross-sell and seat expansion that we were seeing similar to what we saw in the cross sell side, we continue to see strong uptake in our collections across Service Collection and Teamwork Collection." — James Chuong (CFO)
margins holding up with AI use
Q (Karl Keirstead · UBS): He asked why margins stayed strong despite higher AI usage and rising AI mix compared with peers.
A: Management said they are focused on durable profitable growth with a positive GAAP operating margin target for FY '27. They pointed to disciplined hiring, reallocating resources, moderating stock-based comp, and continued judicious AI investment as drivers of the margin plan.
"we're committed to driving durable profitable growth here and a positive GAAP operating margin target for FY '27 really sets us on that path to accelerate and expand GAAP profitability over time." — James Chuong (CFO)
developer hiring and seat expansion mix
Q (Gregg Moskowitz · Mizuho): He asked if a rebound in developer hiring matches what Atlassian sees, and how paid seat expansion this quarter compared to prior periods across technical and knowledge workers.
A: Management said growth is broad-based: customers are adopting Teamwork and Service Collections and also expanding seats in core Jira and Confluence. They noted roughly 2/3 of Jira and Confluence users are knowledge workers and that the number of non-developers building technology is growing.
"The number of people building technology that we don't necessarily call developers is also growing." — Michael Cannon-Brookes (CEO)
durability of Rovo impact
Q (David Hynes · Canaccord): He asked how much of the Rovo-driven expansion is causal versus just early adopters, and whether the trend will persist as Rovo penetration increases.
A: Management said they view the Rovo impact as durable and not just an early-adopter effect, pointing to broad adoption and strong Rovo quality. They said the more customers connect into the Teamwork Graph, the better the results and that the Teamwork and Service Collections compound that value.
"The more they connect into the Teamwork Graph, the better those results get because of our context, because of a lot of great work in R&D." — Michael Cannon-Brookes (CEO)
is Teamwork Graph a lasting moat?
Q (Koji Ikeda · BofA): He asked whether customers — especially large ones — still treat the Teamwork Graph as a strategic moat, or if it risks becoming just a feature when other AI data layers centralize context.
A: Management said building context is hard and they have improved the Teamwork Graph quality a lot. They said most organizations will have 3 to 5 large-scale knowledge graphs and Atlassian intends to be one of them, and they continue to open integrations so agents can access the graph.
"I think most organizations will have 3 to 5 large-scale knowledge graphs, and we intend to be 1 of those 3." — Michael Cannon-Brookes (CEO)
what unlocked enterprise deals
Q (Aleksandr Zukin · Wolfe Search): He asked what specifically unlocked the enterprise motion and deal inflection, and then asked about confidence in the initial ARR guide and any changes exiting fiscal '26.
A: Management said there was no single unblock — it was years of steady work improving technology, compliance, and the enterprise go-to-market which led to continued customer adoption and larger, longer deals. They also reiterated the guide is prudent, noted FY '26 benefited about 1 point from the DX acquisition, and said they feel good about momentum but are cautious in the second half.
"I would say the most important thing is there was no unblock." — Michael Cannon-Brookes (CEO)
connection check before question
Q (Robbie Owens · Piper Sandler): The analyst apologized and asked if the call participants could hear him.
A: There was no management answer in this exchange; the operator had previously indicated they would move to the next questions and then the analyst reconnected and continued his question in the next turn.
Rovo credits, ARPU, consumption model
Q (Robbie Owens · Piper Sandler): He asked about increased Rovo credits driving ARPU uplift, when more consumption-based elements might be introduced, and whether customers have increased credits multiple times.
A: Management said Rovo assisted actions grew about 50% quarter-on-quarter and that the Teamwork Collection includes approximately 10x as many Rovo credits, which motivates upgrades and seat expansion. They said they have consumptive elements today, are working prudently on consumption-based offerings and a Flex model, and that Teamwork and Service Collections are the current vehicles for AI monetization.
"Right now, the simplest thing I would say is that the Teamwork Collection and the Service Collection are the vehicles for AI monetization, right?" — Michael Cannon-Brookes (CEO)