Atlassian (TEAM) AI Stock Analysis

• Market Cap: $42.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.34M
• 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: 168,042,360
• 10 Day Avg. Volume: 2,275,558
• 30 Day Avg. Volume: 2,335,625
• 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: 0.95
• Enterprise Value/Revenue: 7.41
• Enterprise Value/Gross Profit: 8.94
• Enterprise Value/Ebitda: 58.28K
• 1Y Price Target: $236.52
• Price Target Upside: 46.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $173.00 ▲(7.41% Upside)

Atlassian's overall stock score reflects strong earnings call performance and strategic growth initiatives, particularly in AI and cloud services. However, challenges in profitability and valuation metrics, along with technical indicators suggesting potential overbought conditions, moderate the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Atlassian's products, supporting long-term business expansion and market position.

AI Integration

Increased AI integration enhances product offerings, driving customer engagement and positioning Atlassian as a leader in tech innovation.

Cloud Transition

The shift to cloud solutions supports scalability and recurring revenue, aligning with industry trends and future-proofing the business model.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder financial flexibility and investment capacity, impacting long-term growth prospects.

Revenue Recognition Timing

Changes in revenue recognition from cloud services can lead to short-term financial volatility, complicating financial planning and analysis.

Leadership Transition

Leadership changes can introduce strategic uncertainty, potentially affecting execution of long-term initiatives and stakeholder confidence.

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 demonstrates strong revenue growth and cash flow generation, which are positive indicators for future performance. However, the company faces challenges with profitability, as seen in the negative net income and return on equity. Improvements in leverage and cost management are evident, but sustained efforts are needed to achieve profitability. Overall, the financial health is stable with promising growth prospects, but profitability remains a key area for improvement.

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: Neutral
• Last Price: 161.07
• 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 Neutral. The current price of 161.07 is above the 20-day moving average (MA) of 156.67, above the 50-day MA of 157.08, and below the 200-day MA of 186.01, indicating a neutral trend. The MACD of 1.98 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEAM.

Atlassian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADSK	74 Outperform	$63.62B	58.25	40.33%	―	15.62%	2.59%
WDAY	73 Outperform	$57.50B	91.80	7.34%	―	13.35%	-60.76%
DDOG	69 Neutral	$49.23B	475.58	3.52%	―	26.63%	-46.13%
TEAM	66 Neutral	$42.54B	-228.79	-15.35%	―	19.51%	53.35%
HUBS	65 Neutral	$20.40B	-5,603.74	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SNOW	54 Neutral	$76.13B	-55.13	-53.32%	―	28.48%	-19.12%

Atlassian Corporate Events

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.

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.

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.