Atlassian's Service Collection has surpassed $1 billion in annual recurring revenue in the third quarter of fiscal 2026, growing more than 30% year over year and serving over 65,000 customers including more than half of the Fortune 500. The business is benefiting from expanding AI capabilities, with customers using Service Collection's AI tools resolving issues 13% faster and handling 20% more issues than non-AI users, while the segment accounts for roughly half of all agentic automation runs across Atlassian's platform. More than 60% of deployments now support non-IT functions, significantly increasing Atlassian's addressable market. The Zacks Consensus Estimate for Atlassian's fiscal 2026 and 2027 revenues is pegged at $6.46 and $7.32 billion, respectively, indicating year-over-year growth of 23.95% and 13.29%. However, competition is mounting from Salesforce and ServiceNow, with Salesforce intensifying pressure through its AI-powered Service Cloud and Agentforce ecosystem, and ServiceNow emerging as the most formidable competitor by leveraging its ITSM leadership, AI-native platform, and vast enterprise context engine.
Salesforce.com IncAtlassian's Service Collection surpassing $1B ARR and growing 30%+ intensifies competition for Salesforce, which is mentioned as mounting pressure through AI-powered Service Cloud and Agentforce.
ServiceNow IncAtlassian's Service Collection growth and AI capabilities pose competitive threat to ServiceNow, described as the most formidable competitor but still facing rivalry.
Atlassian Corp PlcAtlassian's Service Collection surpassed $1B ARR, growing 30%+ YoY with over 65,000 customers, driven by AI adoption and expanding addressable market.