Atlassian (TEAM) AI Stock Analysis

• Market Cap: $44.44B
• Dividend Yield: N/A
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 19.51%
• EPS Growth: 53.35%
• Country: US
• Employees: 12,157
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.04
• Shares Outstanding: 166,284,670
• 10 Day Avg. Volume: 3,098,601
• 30 Day Avg. Volume: 2,963,452
• PEG Ratio: 13.35
• Price to Book (P/B): 39.51
• Price to Sales (P/S): 10.19
• P/FCF Ratio: 37.56
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $236.64
• Price Target Upside: 39.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 24

• Rating: 67 Neutral
• Price Target: $183.00 ▲(8.02% Upside)

Atlassian's overall stock score reflects strong revenue growth and strategic advancements, particularly in AI and cloud services, which are driving customer engagement and expanding partnerships. However, profitability challenges and valuation concerns due to a negative P/E ratio weigh on the score. The positive sentiment from the earnings call and technical indicators suggest potential for future growth, but profitability remains a key area for improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Cloud Transition Strategy

The shift to cloud services enhances scalability and recurring revenue, positioning Atlassian for sustainable growth in the digital economy.

AI Integration

AI integration drives customer engagement and innovation, offering competitive advantages and expanding product functionality.

Negative Factors

Profitability Challenges

Persistent profitability issues can limit reinvestment in growth initiatives and affect shareholder returns over the long term.

Revenue Recognition Timing

Changes in revenue recognition timing can create financial unpredictability, affecting planning and investor confidence.

Negative Return on Equity

Negative ROE indicates inefficiency in generating shareholder value, potentially impacting long-term financial health and investment appeal.

Atlassian Business Overview & Revenue Model

Company Description

Atlassian Corporation Plc is a leading software company that specializes in collaboration and productivity tools aimed primarily at software development teams, project managers, and businesses. Founded in 2002 and headquartered in Sydney, Australia, Atlassian provides a suite of products including Jira for project management and issue tracking, Confluence for team collaboration, Bitbucket for code repository management, and Trello for task organization. The company serves a diverse range of sectors, including technology, finance, healthcare, and education, and is known for its commitment to enhancing team collaboration and efficiency.

How the Company Makes Money

Atlassian generates revenue primarily through a subscription-based model, offering both cloud-based and on-premise deployment options for its software products. The company has multiple revenue streams, including direct sales of its software licenses, cloud subscriptions, and maintenance fees for on-premise customers. Additionally, Atlassian earns revenue from its marketplace, where third-party developers can sell add-ons and integrations that enhance its core products. Key partnerships with cloud service providers like Amazon Web Services (AWS) and Microsoft Azure further contribute to its earnings by facilitating expanded distribution and integration of its products. The company's focus on expanding its customer base and increasing the average revenue per user (ARPU) through tiered pricing and additional product offerings also plays a critical role in its financial performance.

Atlassian Financial Statement Overview

Summary

Atlassian shows strong revenue growth and efficient cash flow management, but struggles with profitability. The balance sheet indicates improved leverage, yet negative returns on equity remain a concern.

Income Statement

Atlassian's revenue has shown consistent growth over the years, with a 5.09% increase in the latest year. The gross profit margin remains strong at over 82%, indicating efficient cost management. However, the company continues to face challenges in achieving profitability, as evidenced by negative net profit and EBIT margins. The negative net profit margin of -4.92% highlights ongoing profitability issues.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.92, which has improved from previous years, indicating better leverage management. However, the return on equity remains negative at -19.08%, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Atlassian's cash flow is strong, with a high operating cash flow to net income ratio of 0.46, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also robust at 0.97, showing efficient cash management. Despite a slight decline in free cash flow growth, the company maintains healthy cash flow metrics.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.46B	5.22B	4.36B	3.53B	2.80B	2.09B
Gross Profit	4.52B	4.32B	3.56B	2.90B	2.35B	1.76B
EBITDA	-72.29M	24.03M	27.41M	-220.07M	-377.73M	-365.88M
Net Income	-184.79M	-256.69M	-300.52M	-486.76M	-519.51M	-578.98M
Balance Sheet
Total Assets	5.72B	6.04B	5.21B	4.11B	3.33B	2.95B
Cash, Cash Equivalents and Short-Term Investments	2.78B	2.94B	2.34B	2.11B	1.46B	1.23B
Total Debt	1.23B	1.24B	1.25B	1.28B	1.31B	605.35M
Total Liabilities	4.34B	4.70B	4.18B	3.45B	3.00B	2.65B
Stockholders Equity	1.38B	1.35B	1.03B	654.67M	327.37M	294.91M
Cash Flow
Free Cash Flow	1.44B	1.42B	1.42B	842.30M	750.46M	803.31M
Operating Cash Flow	1.49B	1.46B	1.45B	868.11M	821.04M	834.83M
Investing Cash Flow	-381.98M	-342.32M	-963.75M	-1.26M	36.52M	256.64M
Financing Cash Flow	-844.30M	-782.58M	-408.22M	-148.42M	-399.28M	-1.65B

Atlassian Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAM, the sentiment is Positive. The current price of 169.42 is above the 20-day moving average (MA) of 157.02, above the 50-day MA of 163.95, and below the 200-day MA of 208.49, indicating a neutral trend. The MACD of 0.84 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEAM.

Atlassian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADSK	―	$64.19B	62.48	40.20%	―	13.99%	-0.95%
WDAY	―	$64.06B	110.96	6.66%	―	14.21%	-62.56%
DDOG	―	$56.78B	470.41	4.45%	―	26.00%	-25.64%
SNOW	―	$91.88B	―	-42.45%	―	28.37%	-35.49%
HUBS	―	$25.92B	-2,175.67	-0.65%	―	18.96%	58.78%
TEAM	―	$44.44B	―	-15.35%	―	19.51%	53.35%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Atlassian Corporate Events

Atlassian’s Earnings Call: Strong Growth Amid Cloud Transition

Atlassian Corporation’s recent earnings call exuded a generally positive sentiment, underscored by notable growth in revenue and strategic advancements, particularly in AI and cloud migration. Despite challenges in revenue recognition timing due to the transition from data center to cloud, the company’s impressive growth metrics and strategic execution have bolstered investor confidence.

Atlassian Reports Strong Q1 2026 Revenue Growth

Atlassian Corporation Plc is a prominent company in the software industry, specializing in team collaboration and productivity solutions, with a strong focus on AI-driven innovations and enterprise service management.

Atlassian Announces $2.5 Billion Share Buyback

On October 30, 2025, Atlassian announced the retirement of CFO Joe Binz effective June 30, 2026, and a new $2.5 billion share repurchase program. The company reported strong financial results for Q1 FY26, with a 21% increase in revenue year-over-year, driven by AI innovations and enterprise sales. Atlassian also highlighted several strategic initiatives, including the acquisition of The Browser Company of New York and DX, the launch of new AI-powered products, and recognition as a leader in the 2025 Gartner Magic Quadrant for DevOps Platforms.

The most recent analyst rating on (TEAM) stock is a Hold with a $169.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

Atlassian Appoints Jason Warner as New Director

Atlassian Corporation announced that Heather M. Fernandez will retire as a director effective September 30, 2025, after nearly a decade of service. The company expressed gratitude for her contributions and confirmed her departure was not due to any disagreements. On September 16, 2025, Atlassian’s Board appointed Jason Warner as a new director, effective October 1, 2025. Warner, who has a background in AI and technology leadership, will join the Compensation and Leadership Development Committee. His appointment is expected to bring valuable expertise to Atlassian’s strategic initiatives.

The most recent analyst rating on (TEAM) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

Atlassian’s FedRAMP Compliance Challenges: Navigating Risks with U.S. Government Contracts

Atlassian Corporation Plc faces significant challenges and risks in its dealings with U.S. government entities and contractors, primarily due to the stringent requirements of FedRAMP compliance. The company must continuously monitor and assess its security measures, as any failure to meet these obligations could result in the loss of authorization, impacting its ability to serve public sector customers. Additionally, changes in government security requirements and the complexity of maintaining compliance with higher security levels could affect Atlassian’s competitiveness in the public sector. Furthermore, government contracts may include unfavorable terms, and any non-compliance could lead to severe penalties, audits, or investigations, potentially damaging Atlassian’s reputation and financial performance.

Atlassian’s Earnings Call Highlights Growth and Challenges

Atlassian’s recent earnings call paints a picture of robust financial health and strategic growth, despite some challenges. The company demonstrated strong performance in enterprise deals, cloud retention, and AI adoption, which are key areas for its future expansion. However, issues such as declining free cash flow and leadership transitions were also discussed, indicating areas that need attention.

Atlassian Reports Strong FY25 Results with AI Focus

Atlassian Corporation Plc is a prominent software company specializing in collaboration and productivity tools, primarily serving the technology and business sectors with a focus on enterprise solutions and AI integration.

Atlassian Reports Strong Q4 2025 Financial Results

Atlassian announced its financial results for the fourth quarter and fiscal year 2025, reporting a 22% year-over-year increase in quarterly revenue to $1,384 million and a 26% rise in cloud revenue. The company highlighted its strategic partnership with Google Cloud and its recognition as a leader in various industry assessments. Additionally, President Anu Bharadwaj will step down at the end of 2025 after nearly 12 years, having significantly contributed to Atlassian’s cloud platform strategy and System of Work.

The most recent analyst rating on (TEAM) stock is a Hold with a $255.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.