Atlassian (TEAM) AI Stock Analysis

• Market Cap: $45.23B
• Dividend Yield: N/A
• Average Volume (3M): 2.71M
• 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: 82
• Industry: Software - Application
• EPS (TTM): 0.98
• Shares Outstanding: 166,284,670
• 10 Day Avg. Volume: 2,385,230
• 30 Day Avg. Volume: 2,712,995
• 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: 1.14
• Enterprise Value/Revenue: 9.91
• Enterprise Value/Gross Profit: 11.96
• Enterprise Value/Ebitda: 2.15K
• 1Y Price Target: $250.90
• Price Target Upside: 45.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 58 Neutral
• Price Target: $173.00 ▲(0.33% 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

AI Adoption

The uptake of AI features is increasing rapidly, with monthly active users rising significantly, setting up new opportunities for future monetization.

Cloud Revenue

Atlassian's cloud revenue growth beat guidance by nearly three points and accelerated sequentially.

Financial Performance

Atlassian's FQ4’25 earnings beat expectations, demonstrating solid financial performance despite challenging macroeconomic conditions.

Negative Factors

Growth Expectations

The FY26 growth guide of 18% is below Street expectations, indicating potential underperformance compared to market expectations.

Leadership Change

12-year veteran and current President, Anu Bharadwaj, will be leaving the firm at the end of 2025, which is a notable loss.

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 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: Neutral
• Last Price: 172.43
• 50DMA: Negative
• 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 172.43 is above the 20-day moving average (MA) of 168.06, below the 50-day MA of 185.83, and below the 200-day MA of 227.62, indicating a neutral trend. The MACD of -3.50 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 40.87 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	80 Outperform	$69.52B	67.67	40.20%	―	13.99%	-0.95%
WDAY	73 Outperform	$61.70B	106.87	6.66%	―	14.21%	-62.56%
DDOG	68 Neutral	$45.96B	393.18	4.45%	―	26.00%	-25.64%
SNOW	68 Neutral	$75.27B	―	-42.45%	―	28.37%	-35.49%
HUBS	65 Neutral	$25.69B	7,452.21	-0.65%	―	18.96%	58.78%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
TEAM	58 Neutral	$45.23B	―	-21.58%	―	19.66%	15.17%

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.