Atlassian Cloud Revenue Grows 30.5% in Fiscal First Quarter
Key Facts
Atlassian published its shareholder letter for the first quarter of fiscal 2027 on November 5, 2026, and said its cloud revenue rose 30.5% year over year. Subscription annual recurring revenue grew 22.5% year over year, according to the letter. That puts cloud growth above recurring subscription revenue growth during the period, while the two remain distinct performance measures. Meanwhile, the company’s shares closed at $183.29 on November 5, compared with the previous session’s close of $189.88, according to EL7 data. The available figures do not substantiate a claim that earnings per share exceeded analysts’ estimates, nor do they support describing the share move as a jump.
Atlassian said remaining performance obligations, the value of contracted business for which revenue has not yet been recognized, rose 44.4% year over year in the first quarter. The metric indicates the scale of the company’s recorded future obligations, alongside growth in cloud revenue and annual recurring revenue. But the available facts in the letter do not provide a monetary value for these obligations or a timeline for when they will be converted into revenue. The comparison is year over year for the same quarter, not against the previous quarter. The company said in its letter that "remaining performance obligations grew 44.4% year over year."
For its collaboration products, Atlassian said more than 3,000 customers had upgraded to Teamwork Collection by the first quarter of fiscal 2027. It said the number was seven times higher than a year earlier, without specifying the customer count a year ago in the available facts. Service Collection customers also topped 70,000 during the quarter. The company added that annual recurring revenue for the product continued to grow at more than 30% annually. These figures provide indicators of the expanding user base for the two product collections, alongside companywide cloud revenue growth.
The company also said growth in customer seats attributable to competitive wins exceeded 40% year over year in the quarter. The figure links the increase in seats added by the company to competitive gains, but does not specify the number of seats or name the competitors. Regarding use of developer tools, Atlassian said Teamwork Graph CLI usage rose more than 250% month over month in September. The period for this measure is one month, unlike the annual growth rates reported for revenue and product metrics. The letter did not provide, among the available facts, a measure of the baseline usage from which this increase began.
In enterprise AI tools, Atlassian said monthly active users of the Atlassian MCP server exceeded two million during the first quarter of fiscal 2027. The number increased eightfold since March, according to the company. MCP requests also exceeded 15 million per day, up 15-fold since March. These figures show the expansion in server usage and the volume of related requests, alongside indicators of cloud and subscription growth. The company said that "more than two million monthly active users are engaging with the Atlassian MCP server, up eightfold since March."
EL7 data show the share price declined between the November 4 close and the November 5 close, while the investor relations website displayed a share price of $153.91 and a change of -16.03% when updated on November 6, 2026, at 11:20 a.m. The website noted that price data are delayed by at least 20 minutes. This dated update differs from the previous two sessions’ closing prices and therefore remains tied to the display time stated in the source. The shareholder letter published on November 5 focuses on cloud and subscription growth, products and indicators of company tool usage. The available facts do not include a specific date for Atlassian’s next results announcement or other updates.