Atlassian Corporation Plc (TEAM)
NASDAQ:TEAM
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Atlassian
(NASDAQ:TEAM)
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Rating:63Neutral
Price Target:
$95.00
▲(41.92% Upside)
Action:Reiterated
Date:05/02/26
The score is driven primarily by strong cash generation and solid underlying unit economics, tempered by continued GAAP losses and a more leveraged balance sheet. Technicals are improving with positive momentum, while valuation is a notable drag due to negative earnings and no dividend support. Earnings call commentary was encouraging on cloud/AI traction and retention, but near-term timing effects and lack of FY27 guidance limit visibility.
Positive Factors
Free cash flow & margins
Consistent, large free cash flow with very high gross margins (~82%–84%) provides durable funding for product R&D, AI investments and go‑to‑market expansion without immediate reliance on equity raises. Strong cash conversion supports runway to reach sustained GAAP profitability and funds strategic bets.
Negative Factors
GAAP profitability weakness
Despite robust cash flow, the company remains GAAP loss‑making on a trailing basis, pressuring returns on equity and limiting visible distributable earnings. Persistent accounting losses can constrain investor confidence and require sustained execution to convert strong unit economics into consistent GAAP profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow & margins
Consistent, large free cash flow with very high gross margins (~82%–84%) provides durable funding for product R&D, AI investments and go‑to‑market expansion without immediate reliance on equity raises. Strong cash conversion supports runway to reach sustained GAAP profitability and funds strategic bets.
Read all positive factors
Atlassian Key Performance Indicators (KPIs)
Any
Revenue by Type
Categorizes income streams such as subscription and service revenue, highlighting the company's business model and areas of financial strength or dependency.
Categorizes income streams such as subscription and service revenue, highlighting the company's business model and areas of financial strength or dependency.
Data provided by:
The Fly
The FlyAtlassian (TEAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.70B
Dividend YieldN/A
Average Volume (3M)9.09M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth24.74%
EPS Growth49.81%
CountryUS
Employees12,157
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.83
Shares Outstanding159,634,250
10 Day Avg. Volume9,063,786
30 Day Avg. Volume9,089,568
Financial Highlights & Ratios
PEG Ratio13.35
Price to Book (P/B)39.51
Price to Sales (P/S)10.19
P/FCF Ratio37.56
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit4.38
Enterprise Value/Ebitda-836.93
Forecast
1Y Price Target
$130.45Price Target Upside94.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)5.48
Revenue Forecast (FY)$6.47B
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 techn...
How the Company Makes Money
Atlassian primarily makes money by selling subscriptions to its cloud software products, typically priced per user (or per agent for service-management use cases) and billed monthly or annually, with higher-priced tiers (e.g., Standard, Premium, E...
Atlassian Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, rapid cloud and AI adoption, robust retention and meaningful enterprise wins, while acknowledging timing-driven lumpiness from Data Center pull-forward, migration complexity for large customers, and near-term visibility constraints. Management signaled confidence in durable, profitable growth and plans to enhance disclosures to normalize timing effects.Positive Updates
Strong Overall Revenue Growth
Total revenue grew 32% year-over-year to $1.8 billion in Q3 FY2026, demonstrating broad demand and scale.
Negative Updates
Data Center Revenue Lumpiness and Pull-Forward
Q3 included approximately $50 million of greater-than-expected upfront term license revenue driven by pull-forward activity and a March pricing change following the Data Center end-of-life announcement, creating timing/lumpiness in reported revenue.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total revenue grew 32% year-over-year to $1.8 billion in Q3 FY2026, demonstrating broad demand and scale.
Read all positive updates
Company Guidance
Management didn’t issue FY‑27 numeric guidance on the call (they plan to provide guidance in August at Q4), but reiterated that cloud migration is on track and should contribute mid‑ to high‑single‑digit cloud growth; they said Q3 revenue was $1.8B (+32% YoY) with cloud >$1.1B (+29% YoY), RPO $4.0B (+37% YoY) and NRR north of 120%. They noted Rovo credit usage is growing >20% month‑over‑month and customers using Rovo are growing ARR at roughly 2x the rate of non‑Rovo customers; Service Collection passed $1B ARR. On data center, Q3 benefitted from ~+$50M of upfront term license revenue pulled into the quarter (pricing changes and customer pull‑forward), retention remains high but seat expansion is moderating for DC customers, and normalized for ASC 606 RPO would have been >40% YoY and CRPO >30% YoY. Management said they will enhance disclosures (including historical subscription ARR) and hold an investor forum at Team ’26 to help explain timing effects.Atlassian Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
46
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.19B | 5.22B | 4.36B | 3.53B | 2.80B | 2.09B |
| Gross Profit | 5.19B | 4.32B | 3.56B | 2.90B | 2.35B | 1.74B |
| EBITDA | -27.19M | 24.03M | 27.41M | -220.07M | -377.73M | -419.10M |
| Net Income | -216.81M | -256.69M | -300.52M | -486.76M | -519.51M | -696.32M |
Balance Sheet | ||||||
| Total Assets | 5.65B | 6.04B | 5.21B | 4.11B | 3.33B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 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 | 4.77B | 4.70B | 4.18B | 3.45B | 3.00B | 2.65B |
| Stockholders Equity | 879.03M | 1.35B | 1.03B | 654.67M | 327.37M | 294.91M |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 1.42B | 1.42B | 842.30M | 750.46M | 803.31M |
| Operating Cash Flow | 1.25B | 1.46B | 1.45B | 868.11M | 821.04M | 834.83M |
| Investing Cash Flow | -935.40M | -342.32M | -963.75M | -1.26M | 36.52M | 256.64M |
| Financing Cash Flow | -1.83B | -782.58M | -408.22M | -148.42M | -399.28M | -1.65B |
Atlassian Technical Analysis
Positive
66.94
Price Trends
74.07
Positive
93.76
Negative
127.93
Negative
Market Momentum
4.00
Negative
56.81
Neutral
57.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAM, the sentiment is Positive. The current price of 66.94 is below the 20-day moving average (MA) of 81.78, below the 50-day MA of 74.07, and below the 200-day MA of 127.93, indicating a neutral trend. The MACD of 4.00 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEAM.
Atlassian Risk Analysis
Atlassian disclosed 57 risk factors in its most recent earnings report. Atlassian reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atlassian Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $73.87B | 198.31 | 3.78% | ― | 29.54% | -21.11% | |
69 Neutral | $32.31B | 79.12 | 7.97% | ― | 13.28% | 31.76% | |
68 Neutral | $10.68B | 98.40 | 5.02% | ― | 21.05% | ― | |
67 Neutral | $51.41B | 42.41 | 39.89% | ― | 17.80% | 2.09% | |
63 Neutral | $22.70B | -45.26 | -16.70% | ― | 24.74% | 49.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $56.78B | -53.27 | -60.27% | ― | 29.16% | -2.26% |
* Technology Sector Average
TEAM
Atlassian
86.23
-122.94
-58.78%
ADSK
Autodesk
243.63
-49.30
-16.83%
WDAY
Workday
126.61
-141.93
-52.85%
HUBS
HubSpot
203.39
-417.86
-67.26%
DDOG
Datadog
212.24
98.55
86.68%
SNOW
Snowflake
166.97
-12.15
-6.78%
Atlassian Corporate Events
Business Operations and StrategyExecutive/Board Changes
Atlassian Restructures Workforce to Accelerate AI-Driven Strategy
Negative
Mar 12, 2026
On March 11, 2026, Atlassian announced a restructuring that will cut about 10% of its workforce, or roughly 1,600 roles, as it seeks to rebalance operations for the AI era and strengthen long-term efficiency. The company expects total charges of $...
Executive/Board Changes
Atlassian Names LinkedIn Veteran James Chuong as CFO
Positive
Feb 18, 2026
On February 18, 2026, Atlassian announced the appointment of James Chuong, a seasoned finance leader from LinkedIn, as its new Chief Financial Officer, effective March 30, 2026, positioning him as the company’s principal financial officer. C...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.