Atlassian (TEAM) AI Stock Analysis

• Market Cap: $31.09B
• Dividend Yield: N/A
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: 168,042,360
• 10 Day Avg. Volume: 5,444,874
• 30 Day Avg. Volume: 3,456,393
• 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: 0.96
• Enterprise Value/Revenue: 5.48
• Enterprise Value/Gross Profit: 6.61
• Enterprise Value/Ebitda: 43.11K
• 1Y Price Target: $229.43
• Price Target Upside: 94.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $141.00 ▲(19.31% Upside)

The score is driven primarily by stable underlying financial health with strong cash flow generation, plus a positive earnings-call outlook centered on accelerating cloud/RPO growth and AI adoption. These strengths are offset by a sharply bearish technical trend and weak valuation signals tied to ongoing net losses.

Positive Factors

High gross margins & cash generation

An 82.9% gross margin and near-parity free cash flow-to-net-income highlight a scalable SaaS cost structure and strong cash conversion. This durable cash generation funds R&D, acquisitions, and buybacks, providing financial flexibility even while GAAP profitability improves.

Recurring revenue visibility (RPO) and cloud growth

Rapid RPO expansion and double-digit cloud growth reflect growing contracted future revenue and successful cloud migrations. This strengthens long-term revenue predictability, supports enterprise upsells, and underpins a durable subscription flywheel that sustains multi-year topline expansion.

Rising AI engagement and ecosystem stickiness

Millions of AI MAUs and growing platform integrations increase product stickiness and create upsell paths into higher-value offerings. Structural adoption of AI features can deepen customer dependency, raise switching costs, and expand marketplace monetization over the medium term.

Negative Factors

Continued GAAP losses and weak ROE

Sustained negative margins and ROE signal the company has not yet converted strong revenue and gross margins into reliable GAAP profitability. Over months, this can constrain reinvestment, limit shareholder returns, and raise scrutiny on cost structure and pricing execution.

Cloud recognition timing reduces reported growth

The structural shift from upfront data center recognition to ratable cloud revenue depresses near-term organic growth metrics and marketplace take-rates. This creates durable volatility in reported revenue timing and makes comparability and short-term guidance management more challenging for investors.

Key financial leadership turnover

A planned CFO departure during a major cloud transition and sizable buyback program introduces execution risk on capital allocation, reporting cadence, and guidance consistency. New leadership must navigate revenue recognition shifts and integration of recent acquisitions without disrupting strategy.

Atlassian Business Overview & Revenue Model

Company Description

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.

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

Solid operating fundamentals supported by strong gross margin (82.87%) and strong cash generation (free cash flow to net income ratio of 0.96). Offsetting this, profitability remains a key weakness with a negative net profit margin (-3.38%) and negative ROE (-13.91%), despite improving leverage (debt-to-equity 0.89).

Income Statement

Atlassian's revenue has shown consistent growth, with a TTM revenue growth rate of 4.69%. However, the company is currently operating at a net loss, reflected by a negative net profit margin of -3.38% in the TTM. The gross profit margin remains strong at 82.87%, indicating efficient cost management. Despite the negative EBIT and EBITDA margins, the company has improved from previous periods, suggesting potential for future profitability.

Balance Sheet

The debt-to-equity ratio has improved to 0.89 in the TTM, indicating better leverage management compared to previous years. However, the return on equity remains negative at -13.91%, reflecting ongoing challenges in generating profits from equity. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Atlassian's cash flow position is strong, with a positive free cash flow growth rate of 2.87% in the TTM. The operating cash flow to net income ratio is 0.52, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is high at 0.96, highlighting the company's ability to generate cash despite net losses.

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	694.00K	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: Negative
• Last Price: 118.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAM, the sentiment is Negative. The current price of 118.18 is below the 20-day moving average (MA) of 136.66, below the 50-day MA of 148.92, and below the 200-day MA of 176.31, indicating a bearish trend. The MACD of -8.09 indicates Positive momentum. The RSI at 32.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEAM.

Atlassian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDAY	71 Outperform	$46.19B	73.74	7.34%	―	13.35%	-60.76%
DDOG	69 Neutral	$45.35B	438.08	3.52%	―	26.63%	-46.13%
HUBS	65 Neutral	$14.67B	-4,028.78	-0.20%	―	19.21%	75.32%
ADSK	64 Neutral	$53.61B	49.09	40.33%	―	15.62%	2.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEAM	59 Neutral	$31.09B	-167.87	-15.35%	―	19.51%	53.35%
SNOW	54 Neutral	$65.94B	-47.75	-53.32%	―	28.48%	-19.12%

Atlassian Corporate Events

Atlassian Appoints Google Executive Anil Sabharwal as Director

On January 15, 2026, Atlassian’s board of directors approved the appointment of Anil Sabharwal, a Vice President of Product at Alphabet’s Google and former technical advisor to Atlassian’s Williams Racing Formula One partnership, as a director of the company effective February 1, 2026. Sabharwal will receive the standard non-employee director compensation package, including a pro-rated cash retainer and restricted stock unit awards that vest within a year or at the next annual shareholder meeting, with full acceleration upon a sale of the company, and will be covered by Atlassian’s standard indemnification agreement; the company stated there are no special arrangements, related-party transactions, or material interests involving Sabharwal, and any current or future commercial dealings with Google will continue to be conducted at arm’s length under its related-party policy.

The most recent analyst rating on (TEAM) stock is a Buy with a $262.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

Atlassian Announces Planned Retirement of Two Board Directors

On December 18, 2025, Atlassian Corporation announced that directors Sasan Goodarzi and Richard P. Wong had each decided to retire from the company’s board, with both departures effective January 1, 2026. The company emphasized that the retirements were not due to any disagreement over operations, policies, or practices, and expressed deep gratitude for Goodarzi’s seven years of service and Wong’s fifteen years on the board, underscoring a planned and amicable board transition for stakeholders.

The most recent analyst rating on (TEAM) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

Atlassian Concludes 2025 Annual Stockholders Meeting

Atlassian Corporation held its 2025 Annual Meeting of Stockholders on December 2, 2025, where several proposals were considered. Key outcomes included the election of directors, ratification of Ernst & Young LLP as the independent auditor, and approval of amendments to the company’s share incentive and employee share purchase plans. These decisions reflect Atlassian’s ongoing commitment to governance and operational excellence, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (TEAM) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

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.