# Atlassian outlines 18% FY 2027 subscription ARR growth target The company has set an 18% subscription revenue growth target for fiscal year 2027. - **Source:** [Breaking News on Seeking Alpha](https://brifing.si/source/9a596115-e1cc-45e7-b5ba-070be9ea2998) - **Published:** 2026-08-06 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/369c22e5-cb78-4622-a048-2155aec888c5 ## Atlassian's Q4 2026 performance Atlassian reported total revenue of $1.8 billion in the fourth quarter of fiscal year 2026. Cloud revenues reached $1.2 billion, showcasing the success of the company's cloud-focused strategy. CEO Michael Cannon-Brookes described the quarter as 'outstanding.' The company's RPO (Remaining Performance Obligation) grew 44% year-over-year to $4.8 billion. ## Growth targets for 2027 Atlassian has set an 18% subscription revenue growth target for fiscal year 2027. Additionally, the company aims to increase its GAAP operating margin to 4.5%. These targets are seen as part of the company's long-term growth strategy. Demand for Atlassian's cloud-based products will play a critical role in achieving these goals. ## Increase in cloud revenues Atlassian's cloud revenues reached $1.2 billion in the last quarter, accounting for a significant portion of the company's total revenue. This growth can be attributed to increasing demand for the company's cloud-based solutions. Atlassian offers various incentives to accelerate customer migration to cloud products. ## Rise in RPO Atlassian's Remaining Performance Obligation (RPO) increased by 44% year-over-year to $4.8 billion. This growth is considered a strong indicator of the company's future revenues. The rise in RPO reflects growing confidence in Atlassian's products. ## GAAP operating margin Atlassian achieved a 12% GAAP operating margin in the last quarter. The company aims to increase this rate to 4.5% by fiscal year 2027. This target is interpreted as a sign that Atlassian will take steps to improve operational efficiency. ## CEO's remarks Atlassian CEO Michael Cannon-Brookes described the last quarter as 'outstanding.' Cannon-Brookes highlighted the growth in cloud revenues and the rise in RPO. He also emphasized that the growth targets for 2027 align with the company's long-term strategy. ## Customer migrations Atlassian offers various incentives to accelerate customer migration to cloud products. These incentives support the growth in cloud revenues. Faster customer migrations will positively impact Atlassian's future revenues. ## Long-term strategy Atlassian's growth targets for 2027 are part of the company's long-term strategy. Increasing demand for cloud-based products and improving operational efficiency are critical to achieving these goals. Atlassian will continue to take steps in line with this strategy. ## Sources covering this story - https://seekingalpha.com/news/4628656-atlassian-outlines-18-percent-fy-2027-subscription-arr-growth-with-4_5-percent-gaap-operating?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._