Earnings reveiw- Atlassian (TEAM) Q2 2026
Muffett Investments
Earnings Watch · Stock Analysis Division
Earnings Review
28 July 2026
◆ Technology · Software - Application
Atlassian Corporation
Report Period
Q4 FY2026
Reported: 2026-04-30
Headline
Mixed Results
→ Mixed Results
Key Metrics at a Glance
Revenue Growth
+31.7%
YoY
Operating Margin
-3.1%
-223bps YoY
Free Cash Flow
$561.3M
-12.1% YoY
Net Position
Net Debt
-$106.7M
EPS (Diluted)
$-0.90
N/A
Financial Metrics — Detailed Breakdown
| Metric | Q4 FY2026 | Q1 FY2025 | YoY Change | Consensus Est. | vs. Estimate |
|---|---|---|---|---|---|
| Total Revenue | $1.8B | $1.4B | +31.7% | — | N/A |
| Gross Profit | $1.5B | $1.1B | +34.1% | — | N/A |
| Gross Margin | 85.3% | 83.8% | +149bps | — | N/A |
| Operating Income | -$56.3M | -$12.5M | -351.9% | — | N/A |
| Operating Margin | -3.1% | -0.9% | -223bps | — | N/A |
| Net Income | -$98.4M | -$70.8M | -39.0% | — | N/A |
| Net Margin | -5.5% | -5.2% | -29bps | — | N/A |
| Operating Cash Flow | $567.5M | $652.7M | -13.1% | — | N/A |
| Free Cash Flow | $561.3M | $638.3M | -12.1% | — | N/A |
| FCF Margin | 31.4% | 47.0% | -1564bps | — | N/A |
| Total Debt | $1.2B | $1.2B | +1.0% | — | N/A |
| Cash & Equivalents | $1.1B | $2.7B | -57.3% | — | N/A |
| Net Cash / (Debt) | -$106.7M | $1.4B | -107.5% | — | N/A |
| EPS (Diluted) | $-0.90 | $N/A | N/A | $— | N/A |
⚠ Management Commentary — Signals
- No significant red flags detected in EDGAR filing.
📈 Price Reaction
Pre-Earnings Close
$70.49
2026-04-30
Post-Earnings Price
$68.59
Next trading session
1-Day Move
-2.70%
vs. market
52-Week Range
$56.01 – $206.00
Price data sourced from Yahoo Finance. Reaction shown vs. prior trading session close.
Our Verdict
Cautious
Atlassian reported a mixed results quarter, with revenue grew +31.7% YoY to $1.8B. operating margins contracted by 223bps to -3.1%. Free cash flow came in at $561.3M. The balance sheet remains under watch given the debt load.
- Revenue grew strongly at +31.7% YoY — well above average.
- Operating margin contracted 223bps YoY — cost pressures are building.
- Free cash flow declined -12.1% YoY — elevated capex or working capital drag.
- Muted price reaction (-2.7%) — results largely in-line with expectations.
