Atlassian (TEAM) AI Stock Analysis

• Market Cap: $43.72B
• Dividend Yield: N/A
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 19.66%
• EPS Growth: 15.17%
• Country: US
• Employees: 12,157
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.98
• Shares Outstanding: 166,284,670
• 10 Day Avg. Volume: 2,153,564
• 30 Day Avg. Volume: 2,203,365
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 9.91
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 2.15K
• 1Y Price Target: $248.24
• Price Target Upside: 48.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 58 Neutral
• Price Target: $173.00 ▲(3.81% Upside)

Atlassian's overall stock score is primarily driven by strong earnings call insights, highlighting robust revenue growth and strategic initiatives. However, technical indicators and valuation metrics reflect bearish trends and profitability challenges, which weigh down the score.

Positive Factors

Revenue Growth

Consistent revenue growth underscores Atlassian's strong market position and product demand, supporting long-term business expansion.

AI Adoption

Strong AI adoption enhances product capabilities and customer engagement, positioning Atlassian for future innovation and competitive advantage.

Strategic Partnerships

Strategic partnerships with tech leaders like Google Cloud bolster Atlassian's multi-cloud strategy, expanding its reach and technological capabilities.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder Atlassian's ability to reinvest in growth and innovation, affecting long-term financial health.

Leadership Transition

Leadership changes can disrupt strategic continuity and execution, potentially impacting Atlassian's operational stability and strategic initiatives.

Data Center Segment Challenges

Challenges in the Data Center segment may limit revenue diversification and growth, affecting Atlassian's ability to meet broader market demands.

Atlassian Business Overview & Revenue Model

Company Description

Atlassian Corporation Plc is a leading provider of team collaboration and productivity software designed to help software developers, project managers, and content management teams work more efficiently. Founded in 2002, the company is headquartered in Sydney, Australia, and operates globally. Its core products include Jira, a suite of agile project management tools; Confluence, a team collaboration platform; and Trello, a visual project management application. Atlassian serves a wide range of industries, offering cloud-based and on-premises solutions to enhance teamwork and streamline workflows.

How the Company Makes Money

Atlassian generates revenue primarily through the sale of software subscriptions, licenses, and related support and services. The company offers its products via a subscription-based model, with customers paying for access to software hosted in the cloud or through on-premises licenses. Key revenue streams include Jira Software, Jira Service Management, Confluence, Trello, and other collaborative tools. Atlassian also earns from the Atlassian Marketplace, where third-party developers can sell add-ons and integrations, sharing revenue with Atlassian. The company benefits from a high-volume, low-touch sales model, leveraging a self-service approach that reduces the need for a large sales force. Additionally, strategic partnerships and an extensive ecosystem of integrators and developers contribute significantly to its earnings by expanding the functionality and reach of its core products.

Atlassian Financial Statement Overview

Summary

Atlassian shows strong revenue growth and efficient cash flow management, but struggles with profitability, as indicated by negative net profit margins and return on equity. The balance sheet reflects improved leverage, yet challenges in generating shareholder returns persist.

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	5.22B	5.22B	4.36B	3.53B	2.80B	2.09B
Gross Profit	4.32B	4.32B	3.56B	2.90B	2.35B	1.76B
EBITDA	24.03M	24.03M	27.41M	-220.07M	-377.73M	-365.88M
Net Income	-256.69M	-256.69M	-300.52M	-486.76M	-519.51M	-578.98M
Balance Sheet
Total Assets	6.04B	6.04B	5.21B	4.11B	3.33B	2.95B
Cash, Cash Equivalents and Short-Term Investments	2.94B	2.94B	2.34B	2.11B	1.46B	1.23B
Total Debt	1.24B	1.24B	1.25B	1.28B	1.31B	605.35M
Total Liabilities	4.70B	4.70B	4.18B	3.45B	3.00B	2.65B
Stockholders Equity	1.35B	1.35B	1.03B	654.67M	327.37M	294.91M
Cash Flow
Free Cash Flow	1.40B	1.42B	1.42B	842.30M	750.46M	803.31M
Operating Cash Flow	1.45B	1.46B	1.45B	868.11M	821.04M	834.83M
Investing Cash Flow	-339.98M	-342.32M	-963.75M	-1.26M	36.52M	256.64M
Financing Cash Flow	-778.25M	-782.58M	-408.22M	-148.42M	-399.28M	-1.65B

Atlassian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 166.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 166.65 is below the 20-day moving average (MA) of 171.43, below the 50-day MA of 176.46, and below the 200-day MA of 220.90, indicating a bearish trend. The MACD of -2.83 indicates Positive momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, 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
DOCU	77 Outperform	$16.39B	61.50	14.13%	―	8.29%	-71.36%
WDAY	71 Outperform	$65.86B	114.08	6.36%	―	14.21%	-62.56%
HUBS	69 Neutral	$27.28B	-2,289.96	-0.58%	―	18.96%	58.78%
DDOG	68 Neutral	$48.50B	401.82	3.90%	―	26.00%	-25.64%
SNOW	68 Neutral	$76.11B	-54.16	-58.16%	―	28.37%	-35.49%
TEAM	58 Neutral	$43.72B	―	-21.58%	―	19.66%	15.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Atlassian Corporate Events

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.