What it does
Atlassian makes software that helps teams plan, track and coordinate work. Its customers include software developers, IT and support teams, business functions and company leaders. Founded in 2002 and headquartered in Sydney, the company is led by chief executive and co-founder Michael Cannon-Brookes.
Its apps can be bought individually or as part of Collections, which bundle apps and AI capabilities for particular types of work. Jira helps teams manage projects and tasks; Confluence provides a shared workspace for documents and knowledge; and Jira Service Management helps teams handle service requests. Other offerings include Loom for video communication and Bitbucket for software development workflows.
The Atlassian Cloud Platform provides common infrastructure and data across its cloud apps. Its Teamwork Graph connects information about people, projects, goals and knowledge across Atlassian and other tools. Rovo uses that context for search, chat and AI agents that can perform tasks alongside employees. Customers can also build their own agents and automations.
Cloud is Atlassian’s primary commercial offering. Existing customers can also use Data Center, a self-managed option hosted on their own infrastructure, although Atlassian plans to phase it out. The company operates an online Marketplace where customers can find third-party apps that add capabilities to its products.
How it makes money
Atlassian generates revenue primarily from subscriptions. Cloud customers pay for the right to use software hosted on infrastructure Atlassian provides. Data Center customers buy term licenses for software they run themselves, with support and maintenance bundled for the license period. Subscription revenue also includes premier support agreements.
In FY2026, subscription revenue was $6.3 billion, including $4.4 billion of Cloud revenue and $1.8 billion of Data Center revenue.
Subscription revenue depends primarily on the number and size of active licenses, the deployment type and license prices. Agreements generally run for one to twelve months. Atlassian recognizes Cloud revenue as it provides the service; for Data Center, it recognizes the license portion upfront and the support portion over the contract term. Cloud and Data Center subscriptions produce recurring revenue, although prices, plans and product offerings can change.
Customers can start with a free edition or buy a single app for a limited number of users. Atlassian seeks to expand those relationships by selling to more teams, adding apps or Collections, and moving customers to higher-tier cloud editions. Its website supports self-service purchasing, while its sales force focuses on expanding relationships with large existing customers.
The Marketplace offers free and purchasable third-party apps that extend Atlassian products. Atlassian also reports Marketplace and other revenue separately from subscription revenue. It stopped selling Data Center term licenses to new customers in March 2026 and plans to stop sales and expansions to existing customers in March 2028. Subject to limited exceptions, it plans to end on-premises maintenance and support in March 2029.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Subscription | $6.3 billion | 47.6% | 27.0% |
| Cloud | $4.4 billion | 33.6% | 27.9% |
| Data Center | $1.8 billion | 13.9% | 24.8% |
| Marketplace and other | $330.7 million | 2.52% | 9.99% |
| Other | $310.1 million | 2.36% | 8.93% |
| Server | $0.00 | 0.00% | — |
Customers and how it sells
Atlassian serves organizations ranging from small emerging companies to large enterprises, across almost every industry. As of June 30, 2026, it had more than 350,000 customers, defined as organizations with unique domains and an active subscription for two or more seats. Use extends beyond that count to single-user accounts and organizations using only free or starter offerings.
Customers with more than $10,000 in Cloud annual recurring revenue represent the majority of Cloud revenue. No single customer contributed more than 5% of total revenue during fiscal year 2026. More than 50% of users across Atlassian’s core apps belong to business teams.
In FY2026, the United States accounted for $2.8 billion of revenue and 42.0% of revenue. Germany accounted for $692.3 million, while Asia Pacific accounted for $713.4 million.
New customers primarily find and purchase products through Atlassian’s website and low-touch sales process. For larger existing customers, direct sales teams work to expand use across teams and products. A global network of solution partners provides services such as deployment, customization and localized purchasing assistance.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $2.8 billion | 42.0% | 26.5% |
| Other EMEA | $2.0 billion | 30.4% | 26.2% |
| Asia Pacific | $713.4 million | 10.9% | 24.2% |
| Germany | $692.3 million | 10.5% | 28.3% |
| Other Americas | $405.9 million | 6.18% | 21.2% |
Suppliers and costs
Atlassian’s operating cash uses include employee expenses, cloud platform and other infrastructure services, income taxes, professional services, marketing, software and facilities. Its products are software rather than manufactured goods. The company also uses third-party AI models, routing workloads across multiple models through its AI Gateway.
Research and development covers the design, development, testing and delivery of the platform, apps and AI capabilities. It also supports billing, customer support, the Marketplace, Forge and some sales and marketing systems. As of June 30, 2026, over 50% of employees were involved in research and development activities.
In fiscal year 2026, Atlassian recorded $203.9 million in severance and other termination benefits and $1.4 million in additional stock-based compensation for affected employees under restructuring plans. It also recorded impairment charges related to leased properties it exited. Cash paid to employees and vendors increased during the year, contributing to a decline in operating cash flow.
- Revenue$6.6B
- Cost of revenue−$996.8M
- Research and development−$3.3B
- Selling, general and administrative−$2.3B
- Operating income$10.4M
Competitive position
Atlassian competes across software development, service management and business-team collaboration. Rivals range from large technology vendors to smaller businesses and AI-native startups. In software teams, competition includes project management, collaboration and developer tools; in service teams, it includes cloud service-management vendors and older service-desk products. For business teams, competitors include software suites, specialized collaboration tools and general-purpose AI assistants. Atlassian does not name individual competitors in its description of these markets.
Customers often use Atlassian products alongside competing products. The company identifies capabilities, flexibility, cost of ownership, usability, performance, integration, AI and global reach among the factors on which it competes.
Its products share a cloud platform and a data layer that connects information across Atlassian and other tools. The Marketplace supports more than 6,000 third-party apps and integrations, and Atlassian protects its technology with patents, trademarks, trade secrets and contracts.
Our reading: Connected products and accumulated workflow context can make Atlassian more embedded in a customer’s work, although coexistence with rival products limits the exclusivity of that position. Our reading: The Marketplace gives customers ways to extend the software, but the breadth of competing tools and AI assistants leaves the strength of that advantage uncertain.
Growth opportunities
Atlassian seeks growth both by attracting new customers and by expanding use within organizations that already have its products. Expansion can come from more users, higher average prices per user and adoption of additional apps or products. Its direct sales team focuses particularly on large enterprises, while self-service trials and word of mouth support initial adoption.
In FY2026, Cloud revenue grew 27.9% and subscription revenue grew 27.0%. Atlassian is moving customers toward its cloud platform as it phases out Data Center. For customers with particular requirements or challenges, it plans an approximately three-year extended maintenance period after the planned end of regular on-premises support, subject to the stated exceptions.
Collections are intended to give customers a path from individual apps to connected workflows across departments. Atlassian is also investing in AI capabilities, agent infrastructure and platform intelligence. Its Rovo offering includes enterprise search, chat, agents and tools for building agents, automations and apps.
In fiscal year 2026, Atlassian acquired The Browser Company of New York and A Software Company, known as DX. The company believes integrating their technologies will enhance its offerings: the former built an enterprise browser, while DX provides engineering intelligence for leaders.
- $2.8BFY2022
- $3.5BFY2023
- $4.4BFY2024
- $5.2BFY2025
- $6.6BFY2026
- $0.18FY2027 guidance
Structural risks
- Atlassian may not sustain its revenue growth rate or achieve long-term profitability. Its results depend on attracting customers, retaining them and increasing sales to existing customers, as well as the timing and terms of contracts and renewals.
- A compromise of security controls that exposes customer data could cause customers to perceive its products as insecure, lead to lost customers, hinder customer acquisition and expose the company to liabilities.
- The company’s results can be affected by its focus on Cloud offerings and customer migrations, as well as by the success of its AI offerings and its ability to incorporate AI into its products and platform.
- Economic conditions, including inflation and interest rate policy, can affect customers’ willingness or ability to purchase, delay decisions, reduce subscription values or affect retention. Atlassian’s quarterly results may fluctuate significantly.
- Developing and using AI may expose Atlassian to operational, legal, regulatory and reputational risks. Changes to laws and regulations, including those governing privacy, cybersecurity and AI, can also increase the cost of doing business.
- Debt can limit the company’s flexibility and its ability to obtain financing, and principal and interest payments can reduce cash available for operations and investment.
Leadership
Atlassian’s dual-class share structure concentrates voting control with its co-founders and their affiliates, limiting other shareholders’ ability to influence important transactions, including a change in control.
| Name | Role | Since | Total pay, FY2026 |
|---|---|---|---|
| Michael Cannon-BrookesCEO and | Co-Founder | — | $57,337.00 |
| Anu BharadwajFormer | President | — | $12.5 million |
| Joseph Binz | Former Chief Financial Officer | — | $11.5 million |
| Rajeev Rajan | Former Chief Technology Officer | — | $15.4 million |
| Brian DuffyChief Revenue Officer | — | $19.3 million | |
| James Chuong | Chief Financial Officer | — | $21.1 million |
Bottom line
Our reading
Our reading: Atlassian is a recurring-revenue software business built around getting teams to adopt individual tools and then expanding those relationships across an organization. Its connected cloud products and Marketplace can support that model, while the planned Data Center transition makes customer migration an important part of it. The business remains exposed to competition, security failures and the execution of its AI strategy.