Atlassian Reports 23% Revenue Growth to $1.6B and Launches AI Agents in Jira
Atlassian’s Q2 total revenue rose 23% to $1.6 billion, with cloud revenue at $1.1 billion, RPO up 44% to $3.8 billion and cloud retention above 120%. 80% of analysts remain bullish with a $150 target after Bernstein and Citi upheld positive ratings, and Atlassian launched AI Agents in Jira to boost collaboration.
1. Q2 FY26 Results
On February 5, Atlassian reported total Q2 revenue of $1.6 billion, up 23% year-over-year, driven by a record $1.1 billion in cloud sales. RPO climbed 44% to $3.8 billion while cloud net revenue retention exceeded 120%, marking the first quarter with over $1 billion in cloud revenue.
2. Analyst Confidence
Approximately 80% of analysts maintain bullish ratings with a consensus target of $150, implying roughly 80% potential upside. Bernstein reiterated an Outperform rating with a lowered target of $290, and Citi upheld its Buy rating while cutting its target from $210 to $160, reflecting confidence in core fundamentals despite sector volatility.
3. AI Agents in Jira
On February 25, Atlassian introduced AI-driven Agents in Jira to automate routine workflows and drive human-AI collaboration at enterprise scale. The new feature is designed to boost platform engagement and support subscription growth by embedding generative AI capabilities directly into core team workflows.