Atlassian: Strong Cloud and AI Momentum Undervalued Versus Large-Cap Software Peers

William Blair analyst Arjun Bhatia has maintained their bullish stance on TEAM stock, giving a Buy rating today.

Arjun Bhatia has given his Buy rating due to a combination of factors tied to Atlassian’s operating strength and valuation. He highlights that Atlassian delivered a robust quarter, marked by 26% growth in cloud revenue, a record level of large $1 million-plus ACV deals, and continued expansion in paid cloud seats, especially among customers spending over $10,000 annually. He also points to strong momentum in AI adoption and platform-wide selling across the product portfolio, which together reinforce Atlassian’s positioning as a high-value, AI-enabled “system of work” for enterprises.

At the same time, Bhatia notes that the current share price implies a discount to other large-cap software names, based on both revenue and free cash flow multiples for 2026, despite Atlassian’s solid fundamentals and its potential to sustain growth above 20% with strong cash generation. He views recent share price weakness as more a reflection of broad sector sentiment and generalized AI-related concerns than company-specific issues, and believes worries about AI displacing demand in Atlassian’s core markets are exaggerated, at least over the next few years. Although he acknowledges risks such as competitive dynamics, variability in large enterprise deals, and uneven billings, he concludes that the risk/reward profile is attractive and therefore reaffirms his positive (Outperform/Buy) stance on the stock.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $290.00 price target.