Atlassian and Twilio Crush the Quarter, Accelerate. Is the SaaSpocalypse Over?

So this week two of the more important bellwether names in B2B software reported earnings. And neither of them just “beat.” Both accelerated. Materially. At $7B and $5.6B+ run rates respectively. They crushed the quarter, in fact.

This really matters right now.

Because for the past 18 months the narrative on public software stocks in general has been brutal. SaaS is dead, AI-native is everything, the legacy SaaS leaders are in structural decline, and even the great ones are stuck at sub-15% growth forever. We’ve all been writing about the SaaSpocalypse, the great repricing of every B2B software company that hasn’t materially repositioned around AI agents.

And then yesterday happened.

Atlassian:$1.79B in revenue,+32% YoY. Cloud accelerated to 29%. EPS of $1.75 vs $0.98 expected (a 78% beat).Stock up 22.77% todayto $84.21.Twilio:$1.41B in revenue,+20% YoY, the fastest growth in more than three years. Raised full-year guidance. Q2 EPS guided to $2.50 to $2.60 vs $1.29 expected.Stock up 19.59% todayto $177.05.

Both stocks ripped. But context matters. TEAM came into yesterday at $68.59, down ~70% over the past year. Cantor Fitzgerald had cut its price target from $146 to $98 just three days earlier. BTIG cut from $140 to $110 the day after that. The market had largely given up on Atlassian going in. Even after a +22.77% day, the stock is still down ~65% from its 52-week high of $242.

So a fair framing of yesterday: both companies delivered prints strong enough to break a brutal narrative. Whether they’re strong enough to change that narrative is the actual question.

So the obvious question: Is the SaaSpocalypse over?

Let me give you 5 takeaways from each, then my honest answer.

Atlassian: 5 Takeaways. Revenue Up 32%, Stock Price Still Down -63% Last 12 Months

1. 32% Growth at a $7B+ Run Rate Is Frankly Unbelievable

The headline number is $1.79B in revenue, up 32% YoY. At this scale, $7B+ annualized, basically nobody outside of Nvidia is growing at this rate. To put this in perspective: a year ago Atlassian did $1.36B in this same quarter. They added more than $400M of quarterly revenue YoY. That’s a top-50 SaaS company added in a single year on top of the existing business.

2. Cloud Accelerated. That’s the Whole Game.

Cloud revenue crossed $1.1B and accelerated to 29% growth. Acceleration is the rarest event in public SaaS. Almost nothing accelerates at scale once you’re past a few billion in ARR. The fact that Cloud is speeding up, not slowing down, is the single most important data point in this report.

The catch: about $50M of the beat came from upfront term license revenue pulled forward from FY27 due to the March pricing change. Strip that out and underlying growth is more like 28%. Still extraordinary. But it does mean FY27 comps will be harder than they look.

3. Rovo It’s AI Offering Is Actually Working, and Driving Real Expansion

This is the line that should make every SaaS CEO take notice: customers using Rovo are growing their ARR at roughly 2x the rate of customers who don’t use it. AI Rovo credit usage is growing 20%+ month-over-month.

This is the proof point everyone has been looking for. AI in SaaS isn’t just about deflecting tickets or automating a feature. When deployed as a real expansion lever, it materially increases NRR. Atlassian just gave us the cleanest data point we’ve seen on this from a $7B+ company.

4. The Largest-Ever Quarter for Competitive Displacements

Mike Cannon-Brookes called this “our largest-ever quarter for competitive displacements from a major ITSM provider.” Read: ServiceNow. Jira Service Management is taking real share at the enterprise. This is the kind of comment that gets a CFO at a competitor on a plane.

If you’re wondering whether AI is creating new openings to displace incumbents in categories everyone thought were locked up, the answer is yes. Apparently even in ITSM.

5. RPO Up 37% YoY to $4B = The Pipeline Is Real

Remaining performance obligations rose 37% to $4B. RPO is the truest forward indicator in SaaS. It’s contracted but unrecognized revenue. 37% RPO growth on 32% revenue growth tells you the deal flow is real and lengthening. Customers are signing bigger and longer commitments. That’s not a sugar high. That’s a structural shift.

Twilio: 5 Takeaways. Revenue Up 20%, Stock Price Up +82% (!) Over Last 12 Months

1. 20% Growth, the Highest in 3+ Years. Twilio Re-Accelerated.

Twilio was largely left for dead in 2023 and 2024. Growth had collapsed to single digits. Activist investors. CEO change. The whole story.

Q1 2026: $1.41B in revenue, up 20% YoY, the fastest growth rate in more than three years. Organic growth of 16%. This is one of the more remarkable re-accelerations in modern public SaaS history. If you owned this stock through the dark period, congratulations.

2. Voice Is the Engine, and It’s All AI

Voice revenue grew 20% YoY, the highest in 19 quarters. Almost five years. The driver is AI agent workloads.

Software add-ons like Conversational Intelligence and Branded Calling both grew more than 100% YoY. That’s not a rounding error. That’s a re-pricing of what Twilio is, from messaging-and-voice infrastructure to the orchestration layer for AI customer interactions.

3. The Customer List Is the Real Tell: Sierra. Bland.ai. Posh.

The customer wins this quarter weren’t just Fortune 500 logos. They were the AI-native leaders in voice and customer experience:

Sierra(Bret Taylor’s company) signed a cross-sell deal for global expansionBland.aicommitted to a multi-year deal for messaging, voice, and software add-onsPoshis using Conversation Relay as the voice infrastructure for their bank/credit union AISela AIsigned an expansion dealScorpion, a digital marketing partner, built an AI agent on Conversation Relay that drove**$8.4M in revenue and a 39% boost in booking rates in three months**

Twilio isn’t selling against the AI agent companies. It’s the picks-and-shovels underneath them. Every voice AI startup needs phone numbers, low-latency connections, compliance, and routing. That’s all Twilio.

4. Multi-Product Attach Up 29%. The Platform Strategy Is Finally Working.

For years, Twilio talked about being a platform, and for years, most customers just bought messaging. That’s changed. Multi-product customer count grew 29% in Q1. The percentage of deals closing with multiple products is climbing every quarter.

This is what a real platform consolidation looks like in practice. Customers consolidating spend with one vendor across voice, messaging, and AI orchestration because the data and the channels need to live in the same place.

5. Guidance Raise Was Massive. Margins Improving Too.

Twilio raised full-year revenue guidance from $5.65B to $5.70B, to a new range of $5.78B to $5.83B. Q2 EPS guidance: $2.50 to $2.60 vs. consensus of $1.29. That’s roughly 2x the Street estimate.

This is what happens when you re-accelerate at scale and operating leverage kicks in simultaneously. Non-GAAP operating income of $279M in Q1, FCF of $132M. Twilio has gone from a “growth at all costs” reputation to a real operating discipline story while also re-accelerating growth. That combination is incredibly rare.

The Tell: Customer Counts Reveal Where Growth Is Actually Coming From

Here’s the question that matters more than any headline revenue number: are these companies adding new customers, or just extracting more from the existing base? Revenue growth without logo growth means you’re milking the installed base. That works for a few quarters. It’s not a long-term strategy.

The five-company cohort tells a clearly bifurcated story. Two are slowing on customer adds. Three are accelerating, sharply.

Decelerating customer growth (the application SaaS layer):

Atlassian’s>$10K Cloud ARR cohort over the last 7 quarters: 17%, 15%, 14%, 13%,