Atlassian: 3 Key Takeaways for Long-Term Investors

On its earnings call, held on Nov. 5, 2026, to review results of its fiscal year 2027 first quarter ended Sept. 30, Atlassian (NASDAQ:TEAM) announced total revenue grew 24% year over year to $1.8 billion. The business expanded its remaining performance obligations (RPO), or total contracted future revenue, by 44% as corporate clients signed multiyear platform commitments.

That expansion shows enterprise customers are deepening their operational ties to the software suite as artificial intelligence (AI) tools scale. Three takeaways from the call highlight how management is steering the business for durable growth.

1. Multiyear Hybrid Contracts Secure Enterprise Cloud Migrations

Large corporate clients transitioning from self-managed data center software to cloud products often face complex deployment schedules. Management introduced hybrid agreements so organizations can migrate across multiple years without paying double subscription fees, preserving long-term customer retention.

Data center migrations to cloud contributed approximately mid to high single digits to cloud revenue growth. But in terms of one of the areas where we want to make sure we meet our customers where they are commercially is to make available for them hybrid deployments.
-- James Chuong, Chief Financial Officer

2. AI Automation Expands Software Coordination Needs

Investors worry that automated coding tools will reduce demand for project management and team collaboration software. Management argued that autonomous software agents generate more task volume and workflows, which increases the need for Jira and Confluence to track project context.

There's no doubt the amount of work happening is going to go up, precipitously so. The coordination tax of that then becomes even more so. If you're trying to understand 10x as much work, you need to understand more coordination, more connections than you have been beforehand. The context that Jira and Confluence provides of your history and your future are two of the most essential ingredients.
-- Mike Cannon-Brookes, Chief Executive Officer and Co-Founder

3. Forward-Deployed Engineers Accelerate Product Adoption

Sending technical specialists, called forward-deployed engineers (FDEs), directly to customer sites helps enterprises integrate artificial intelligence and machine learning (ML) features into existing workflows. Management uses software engineers to build custom integrations rather than expanding low-margin professional services teams, protecting profit margins while driving usage.

All FDEs are not built the same. Our FDEs are fully qualified AI and ML engineers who are writing full production customer code and product code at the customer site. So they're trying to help customers to get their AI motions moving, to get workflows moving onto the platform.
-- Mike Cannon-Brookes, Chief Executive Officer and Co-Founder

Looking Ahead

Enterprise adoption is accelerating across cloud migration and artificial intelligence products, and leadership is not hiding its satisfaction about the momentum. Deep context graph integrations and robust compliance controls reinforce the company's competitive moat as teams scale automated agents.

Customers are bringing more people, more agents, and more workflows onto the Atlassian platform, and they're making larger and longer-term commitments.
-- Mike Cannon-Brookes, Chief Executive Officer and Co-Founder

Management is focusing on enterprise sales execution and platform interoperability to convert early AI usage into durable subscription expansion.

Connecting agents and humans on the Atlassian platform will continue to unlock huge value for our customers, and we're extremely proud to be building for that future.
-- Mike Cannon-Brookes, Chief Executive Officer and Co-Founder

The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.