The Numbers
Atlassian: $1.79B revenue, up 32% year-on-year. Cloud revenue hit $1.1B, accelerated to 29% growth. EPS $1.75 versus $0.98 expected. Stock up 22.77% to $84.21, still down 65% from 52-week high.
Twilio: $1.41B revenue, up 20% year-on-year, the fastest growth in three years. Voice revenue up 20%, highest in 19 quarters. Stock up 19.59% to $177.05.
Both companies delivered prints strong enough to break the SaaSpocalypse narrative. The question: did they change it?
What This Means for Sales Orgs
Atlassian: AI Driving Real Expansion
The standout line: customers using Rovo (Atlassian's AI product) are growing ARR at roughly 2x the rate of customers without it. AI credit usage is growing 20% month-on-month.
This is the proof point every CRO has been waiting for. AI in SaaS is not just deflecting support tickets. When deployed as an expansion lever, it materially increases net revenue retention. If you are carrying an enterprise quota, this is the kind of data that changes pitch decks.
Atlassian also reported its largest-ever quarter for competitive displacements from ServiceNow in ITSM. AI is creating real openings to take share in categories everyone thought were locked up.
Remaining performance obligations rose 37% to $4B. Customers are signing bigger and longer commitments. That is not a sugar high, that is pipeline reality.
Twilio: Consumption Model Wins
Twilio re-accelerated after years in the wilderness. Voice revenue grew 20%, the highest in 19 quarters, driven by AI agent workloads. Software add-ons like Conversational Intelligence and Branded Calling both grew over 100% year-on-year.
The customer list tells the story: Sierra, Bland.ai, Posh. AI-native companies building voice and customer experience layers. Twilio's consumption-based pricing model is structurally advantaged during the AI agent transition. As companies deploy AI agents, they increase API consumption and data processing, creating tailwinds not headwinds.
The Catch
Atlassian pulled forward about $50M in term license revenue from FY27 due to a March pricing change. Strip that out and underlying growth is closer to 28%. Still extraordinary, but FY27 comps will be harder.
Twilio's organic growth was 16%, with 4% coming from acquisitions.
What Sales Teams Should Watch
If you are in enterprise SaaS sales, these results matter:
AI-driven expansion is real. Atlassian just proved it at scale. If your product has AI capabilities tied to consumption or usage, that is a comp lever worth testing.
Consumption pricing beats per-seat in the AI transition. Twilio's model is resilient because AI agents increase usage, not replace seats. If your company is still pricing per-seat, that conversation is getting louder in the boardroom.
Competitive displacement opportunities are opening. ServiceNow losing enterprise deals to Jira Service Management is not noise. AI is creating windows to unseat incumbents. If you are carrying an enterprise patch, test those conversations.
RPO growth at 37% means deal sizes are lengthening. Customers are committing bigger and longer. If your contracts are shortening or flattening, that is a red flag.
Is the SaaSpocalypse Over?
No. But the narrative is bifurcating.
SaaS companies with per-seat pricing models and no AI repositioning are still getting repriced. The February 2026 selloff wiped $285B from SaaS valuations in 48 hours. Atlassian laid off 1,600 people (10% of workforce) earlier this year and suffered its first-ever enterprise seat decline.
But companies that have repositioned around AI (Atlassian) or have consumption-based models (Twilio) are showing that acceleration at scale is still possible. The market is now distinguishing between vulnerable seat-based pricing and resilient consumption-oriented models.
For sales teams: if your quota got cut in February and your CRO is still talking about the macro, these two prints just made that conversation harder to justify.