Atlassian hits $1 billion quarterly cloud revenue - and here's why it thinks AI creates more work, not less

The anxiety gripping enterprise software right now is not subtle. The theory du jour is that if AI makes developers more productive, companies will need fewer seats, spend less on tooling, and vendors like Atlassian will suffer. Wall Street has been fickle with the sector, and Atlassian has not been spared.

But Co-Founder and CEO Mike Cannon-Brookes is making a data-backed argument that the opposite is happening. Customers using AI code generation tools create 5 percent more tasks in Jira, have 5 percent higher monthly active users, and expand their Jira seats 5 percent faster than those who do not. The more AI these companies adopt, the more Atlassian they use.

That is the central thread running through Atlassian's second quarter fiscal year 2026 earnings. The company has surpassed $6 billion in Annual Run Rate revenue, delivered its first ever $1 billion cloud revenue quarter (up 26% year-over-year), and ...