Our Q2 FY26 letter to shareholders
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âď¸ From the CEO
We had a fantastic Q2. Weâre building a bloody great business.
Iâm convinced AI is great for Atlassian. Others think software is dead.
In this environment, it seems that noise swamps signal, nuance gets lost.
So this quarter Iâm going to give you straight signal. The Q2 facts that make me bullish. And let our customers do the talking.
- Revenue grew 23% YoY to $1.6 billion. Cloud revenue grew 26% YoY $1.1 billion – our first ever $1 billion+ cloud quarter.
- RPO up 44% YoY to $3.8 billion, continuing to accelerate – reflecting enterprise adoption and long-term customer commitments to us as a strategic platform.
- Rovo sailed past 5 million MAU. Teamwork Graph now well past 100 billion+ objects & connections – our AI transformation continues to deliver for our customers’ workflows, with record agent & token use.
- Record number of $1 million+ ACV deals, up nearly 2x YoY. 600+ customers with >$1 million of ARR, up almost 40% YoY – our enterprise transformation continues is delivering, with us becoming an ever-more strategic partner to our customers.
- Cloud net revenue retention rate (NRR) is 120%+, ticking up for the third consecutive quarter – customers are expanding use of our enterprise AI platform with more users, apps, and upgrades.
- Over 350,000 customers, including 80% of the Fortune 500 and 60% of the Forbes AI 50 – with 50% of our users in finance, HR, marketing, ops, and other non-technical teams.
- Teamwork Collection, our primary AI monetization, passed 1 million seats and 1,000 customers – exceeding our expectations, consolidating tools, and expanding seat counts by 10%+ over their standalone app footprint.
- Service Collection launched Customer Service Management and passed 65,000 customers, including half of the Fortune 500 – while our enterprise business grew 60% YoY in Q2.
- Software Collection launched, DX joined the team, and had a record Q2 – customers are choosing us for their AI-native software development lifecycle.
- Accelerating our pace of buybacks, plans for H2 up ~2-3X vs H1 – we believe our shares are significantly undervalued. Weâre using our strong free cash flow to opportunistically repurchase our stock.
We just celebrated the 10-year anniversary of our IPO. What Scott and I wrote in our F-1 remains true today:
We’ve run this company with a long-term mindset… We don’t seek to maximize growth in any one year. We are focused on sustainable growth year after year. We’re passionate about the long-term welfare of our customers, our employees, and our shareholders.â
Sustainable growth? Over the last decade, weâve had a revenue CAGR of 30%+.
In complex times, I focus on the simple things. Listen to customers. Anchor in facts. Adapt to reality. Execute with discipline. Give a sh*t. Work hard. Build with heart and balance.
I believe you canât fight uncertainty with certainty – you fight it with clarity and conviction.
Back to work. LFG đđť
-Mike
Words from our customers
AI
Across thousands of Jira customers, those using AI code-gen tools create approximately 5% more tasks in Jira, have 5% higher MAU, and expand seats 5% faster than those that donât.
âIn probably 8 weeks, we saw full adoption [of Rovo]. Itâs used by 70% of our company. In about six weeks, we created 200 Rovo agents, and theyâre not only helping employees but also increasing productivity and capacity.The power for some of the AI capabilities is how it flows and the context shifting that employees and people have to do with all of that choice. When you have a system that goes across the stack, that is incredibly powerful, and weâre not having to retrain every single time on a new tool or new technology. Thereâs a familiarity there for our employees.â
Chris Burgess, CIO, Expedia Group
With Atlassian Teamwork Collection and Rovo, we’re automating incident documentation, streamlining help desk responses, and enabling seamless project updates. We’re moving towards our goal to reduce manual work by 30%, empowering every team to focus on higher value outcomes.”
Vladislav Tsapko, VP, Business Operations, Insurity
âOur teams are using Rovo to search across apps, summarize information, improve their writing, and speed up tedious tasks, like grouping ideas in Confluence whiteboards. Theyâre also eager to build custom agents with Rovo Studio that can automate processes and save even more time.â
Tina Weber, Product Owner, Collaborative Tool Solutions, Schaeffler Technologies
Enterprise
Companies like Synchrony Financial, Workday, and Publicis Sapient expanded their Atlassian footprint in Q2, joining enterprises like United, Audi, Dominoâs, and AirFrance KLM, committing to our platform to help their teams work smarter. Dedicated programs like FastShift to help customers like AMD, IBM, and Expedia Group make the move to our AI-powered Atlassian Cloud platform, seamlessly.
Delivery Hero, one of the worldâs leading delivery platforms, recently migrated 40,000 users to Atlassian cloud in a matter of months, achieving a 40% faster migration than planned by using our tooling. By consolidating onto the Atlassian Platform, theyâve realized 69% cost and time savings, including more than 1,000 hours of maintenance work.
After comparing collaboration and productivity tools, I knew Atlassian should be our #1 platform. Everything else felt too simple or too complex. Atlassian was intuitive enough for our basic users and advanced enough for our power users.â
Jousef Waggad, Atlassian Administrator, Delivery Hero
System of Work
âHaving a System of Work built on a great data platform with common ways of working allows us to make AI very effective and enable AI at scale.â
Jason Andrews, Vice President of Strategy & Planning â Engineering Operations, Cisco Networking
With Teamwork Collection, Strategy Collection, and Guard, Synchrony is moving towards a centralized, secure System of Work where strategy and execution are seamlessly connected. Our vision is for every team to plan, deliver, and support work on a unified, governed platformâenabling proactive, data-driven decisions, preventing customer-impacting issues before they occur, and empowering over 15,000 knowledge workers to collaborate safely at scale while upholding the highest standards of financial data protection.â
Sudhanva Ramesh, VP, Office of Agile Tools Lead, Synchrony Financial
Teamwork Collection:
Customers such as Globant, Optimizely, Asurion, and Paysafe upgraded to ensure seamless collaboration across all teams in their organizations. All of this gives us even more confidence that our strategy is working.
Atlassianâs Teamwork Collection helps our global teams move faster and stay better connected. By bringing Jira, Confluence, and Loom together with the power of AIâand integrating them into our Sapient Slingshot platformâweâre able to link ideas to customer value more seamlessly. The tools give us scale and automation, but they also keep human creativity front and centerâwhich is how we deliver real impact for our clients.”
Erik Gottesman, GVP Agile Program Management, Methods & Tools Global Practice Lead, Publicis Sapient
With Teamwork Collection, LPL Financial plans to unify our platform to modernize collaboration, reduce unnecessary meetings, and centralize communicationâallowing us to work faster and smarter together. I look forward to breaking down silos, gaining deeper project insights, and empowering our teams to adopt new technologies like AI, all backed by strong executive alignment and a shared vision for the future.â
Camila Haselwood, VP, Delivery Enablement, LPL Financial
With the Atlassian Teamwork Collection, we have improved our meeting culture and transformed the way we collaborate and communicate. Connecting our teams and data with the Teamwork Collection is saving us valuable time and money â a key enabler on our mission to help our customers do the same. With Loom, our teams have replaced unnecessary meetings and long Confluence pages with quick Loom videos â making communication faster, more engaging, and more digestible.â
Laura Bennett, Atlassian Suite Administrator, Trivago
Service Collection:
Many organizations like Neta replace their existing enterprise service management solutions with Atlassian, joining customers like Mercedes-Benz, The Warehouse Group, and Sony Music Publishing in connecting Dev, IT, Operations, and business teams to deliver exceptional service at scale.
Customers like Neta, a large European energy and utilities platform, that switched from a legacy provider to Service Collection, use JSM and Rovo to speed up incident response and run application support, cutting escalations by 35% and resolving tickets 10â30% faster.
Moving to Atlassian Cloud and rolling Jira Service Management out to business teams like Finance has already transformed how we work â upgrades happen in the background, and automation took us from thousands of invoices in one queue down to a handful of tickets. Weâre leaning into whatâs next with Atlassian AI: engineers are looking forward to the Rovo Dev Agent beta, Loom is making it easy to add quick howâto videos into Confluence, and weâre onboarding onto DX to take advantage of AI assistance and improve our developersâ everyday workflows.â
â Curtis Valente, IT Director, Tripadvisor
Software Collection:
This is a small part of our overall business today but thereâs a real appetite for AI-native software development. Rovo Dev, DX, and early Agentic Pipelines usage demonstrated that teams want smarter, more automated workflows.
Flo, serving hundreds of millions of users worldwide, leveraged Atlassian’s cloud platform to achieve a 900% increase in daily deployments, a 50% reduction in cycle time, and a 99% decrease in mean time to resolution, while enabling seamless collaboration across its global teams.
And customers like Dropbox, Block, Pinterest, and BNY have experienced the benefits of measuring, understanding, and improving developer productivity and satisfaction with DX.
Each automation removes friction, fosters creativity, and builds trust. Thatâs what makes Rovo Dev more than a tool â for us, itâs a catalyst for culture.â
â Martin Bild, Head of Product Excellence, Axel Springer
But wait, thereâs more
Footnotes:
1- GartnerŽ Magic Quadrant⢠for Marketing Work Management Platforms, Michael McCune, Rachel Dooley, Lacretia Marsh, Amy Jenkins, Kate Fridley, Anja Naski, 1 December 2025
2- GartnerŽ, Magic Quadrant⢠for Collaborative Work Management, Nikos Drakos, Joe Mariano, Lacy Lei, Hironori Hayashi, 28 October 2025
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This page contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable laws. These statements may be identified by words such as âmay,â âwill,â âexpect,â âbelieve,â âcould,â âshould,â âestimate,â or âcontinue.â All statements other than statements of historical fact could be deemed forward looking, including but not limited to risks and uncertainties related to statements about our platform, offerings and capabilities and planned offering and capabilities, AI solutions and capabilities, the broader market, System of Work, investments and expenses, customers, Cloud migrations, macroeconomic environment, anticipated growth, market position and opportunity, competition, business plans and long term strategies, share buyback plans, strategic acquisitions, enterprise sales, outlook and results, other key strategic areas, and our financial targets and measures. Forward-looking statements represent our managementâs beliefs and assumptions only as of the date such statements are made. You should not rely upon forward-looking statements as predictions of future events. The achievement or success of the matters covered by such forward-looking statements involves a variety of factors. We undertake no obligation to update any forward-looking statements, except as required by law.
We calculate net revenue retention rate (NRR) at a point in time by dividing monthly recurring revenue (MRR) at the end of a reporting period (Current Period MRR) by the MRR for the same group of customers at the end of the prior 12-month period. Current Period MRR includes existing customer expansion net of existing customer contraction and attrition but excludes MRR from new customers in the current period.