Atlassian (TEAM) AI Stock Analysis

• Market Cap: $42.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• 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: 1,709,756
• 30 Day Avg. Volume: 1,957,648
• 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: $235.57
• Price Target Upside: 57.65% 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 ▲(15.77% 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, 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

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: Negative
• Last Price: 149.43
• 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 149.43 is below the 20-day moving average (MA) of 160.56, below the 50-day MA of 157.64, and below the 200-day MA of 182.15, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.71 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
ADSK	74 Outperform	$62.28B	53.69	40.33%	―	15.62%	2.59%
WDAY	73 Outperform	$55.53B	88.08	7.34%	―	13.35%	-60.76%
DDOG	69 Neutral	$49.60B	442.68	3.52%	―	26.63%	-46.13%
TEAM	66 Neutral	$42.48B	-212.26	-15.35%	―	19.51%	53.35%
HUBS	65 Neutral	$20.86B	-5,322.30	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SNOW	54 Neutral	$79.90B	-55.46	-53.32%	―	28.48%	-19.12%

Atlassian Corporate Events

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.