Atlassian Service Collection hits $1 billion ARR – Q3 FY2026 brings record displacements and a data center surprise

Atlassian shares jumped 18% in after-hours trading on Thursday following the company's third quarter fiscal year 2026 results – a meaningful reaction in a year where the stock has lost more than 60% of its value on AI-related anxieties. The headline numbers explain why.

Total revenue is up 32% year-over-year to $1.8 billion. Cloud revenue surpasses $1.1 billion and accelerates to 29% growth. Remaining Performance Obligations (RPO) – the dollar value of contracts customers have signed but Atlassian has not yet recognized as revenue – reach $4 billion, up 37%. Net Revenue Retention (NRR), which measures whether existing customers are spending more or less than they did a year ago, ticks up north of 120% for the fourth consecutive quarter, meaning the average existing customer is paying 20% more than they were twelve months ago. And the Service Collection – the family of products built around Jira Service Management (JSM) – passes ...