Atlassian (TEAM) AI Stock Analysis

• Market Cap: $22.13B
• Dividend Yield: N/A
• Average Volume (3M): 6.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 19.51%
• EPS Growth: 53.35%
• Country: US
• Employees: 12,157
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.22
• Shares Outstanding: 169,610,460
• 10 Day Avg. Volume: 7,104,045
• 30 Day Avg. Volume: 6,289,752
• 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: 0.91
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 1.77K
• 1Y Price Target: $169.57
• Price Target Upside: 123.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $85.00 ▲(11.87% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by very weak technicals (deep downtrend) and limited valuation support (negative P/E). These are partially offset by solid underlying financial quality (strong gross margins and substantial free cash flow) and a constructive earnings call with strong cloud metrics and reaffirmed mid-term targets, despite near-term Data Center headwinds.

Positive Factors

Strong cash generation & high gross margins

Consistent, sizable operating and free cash flow combined with very high gross margins indicate durable business economics. This cash generation funds R&D, cloud migrations, and buybacks or debt reduction, providing financial flexibility during industry transitions and supporting long-term investment priorities.

Large, growing cloud ARR and strong retention

A $6B+ ARR base with >120% net revenue retention and a rapidly growing RPO creates high visibility and predictable recurring revenue. High retention and backlog cushion growth targets, make unit economics compounding, and reduce customer acquisition pressure over the medium term.

Enterprise traction, portfolio adoption, and AI engagement

Rapid enterprise deal growth, fast adoption of bundled suites, and multi-million user engagement with AI features strengthen product stickiness and upsell potential. These structural adoption trends support durable seat expansion and long-term monetization through platform and marketplace leverage.

Negative Factors

Data Center revenue decline

A meaningful, multiyear decline in Data Center revenue during transitions to cloud creates near-term top-line pressure and requires careful migration economics. Headwinds can compress growth and force reinvestment in sales/transition support, affecting medium-term revenue pacing.

Ongoing GAAP losses and weak returns

Negative net margins and ROE signal the company has not fully translated scale into consistent GAAP profitability. Persistent losses constrain free cash deployment options over time, increase scrutiny on expense control, and make the company more sensitive to margin pressure from new cost centers like AI.

Pricing & AI consumption monetization risk

Uncertainty over how to price AI features and seat-based offerings, plus overlapping functionality from external AI tools, could hinder monetization and complicate go-to-market. Structural ambiguity in consumption pricing risks compressing long-term revenue per user and raises execution complexity.

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

Strong cash generation (TTM operating cash flow ~$1.32B; free cash flow ~$1.27B) and excellent gross margins (~82–84%) support a solid core business. Offsetting this, profitability remains weak with negative TTM net margin (~-3.4%) and negative ROE (~-13.9%), though leverage has improved (debt-to-equity ~0.89).

Income Statement

Revenue growth remains positive and has re-accelerated in TTM (Trailing-Twelve-Months) (5.5%), and gross margins are consistently very strong (~82–84%), reflecting solid product economics. However, profitability is still pressured: TTM (Trailing-Twelve-Months) net margin is negative (~-3.4%) and EBIT remains slightly negative, indicating the company has not yet translated scale into consistent bottom-line profits. The trajectory is improving versus earlier years (loss margins were materially worse), but earnings quality is still a key watch item.

Balance Sheet

Leverage has improved meaningfully over time: debt-to-equity is down to ~0.89 in TTM (Trailing-Twelve-Months) from much higher levels in prior years, and equity has expanded, supporting balance-sheet stability. That said, returns remain negative (TTM (Trailing-Twelve-Months) return on equity is ~-13.9%) because net losses persist, and total debt (~$1.2B) is still notable relative to equity (~$1.6B). Overall, the balance sheet looks more resilient than it did historically, but profitability is still the constraint.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow (~$1.32B) and free cash flow (~$1.27B) are both strong, supporting internal funding capacity despite reported net losses. Free cash flow did decline in TTM (Trailing-Twelve-Months) (~-12.1% growth), signaling some near-term pressure, but the company continues to convert a large portion of operating cash flow into free cash flow. Overall cash flow performance is solid and provides flexibility.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	5.76B	5.22B	4.36B	3.53B	2.80B	2.09B
Gross Profit	4.81B	4.32B	3.56B	2.90B	2.35B	1.74B
EBITDA	11.44M	24.03M	27.41M	-220.07M	-377.73M	-419.10M
Net Income	-189.22M	-256.69M	-300.52M	-486.76M	-519.51M	-696.32M
Balance Sheet
Total Assets	6.16B	6.04B	5.21B	4.11B	3.33B	2.95B
Cash, Cash Equivalents and Short-Term Investments	1.57B	2.94B	2.34B	2.11B	1.46B	1.23B
Total Debt	1.39B	1.24B	1.25B	1.28B	1.31B	605.35M
Total Liabilities	4.57B	4.70B	4.18B	3.45B	3.00B	2.65B
Stockholders Equity	1.59B	1.35B	1.03B	654.67M	327.37M	294.91M
Cash Flow
Free Cash Flow	1.27B	1.42B	1.42B	842.30M	750.46M	803.31M
Operating Cash Flow	1.32B	1.46B	1.45B	868.11M	821.04M	834.83M
Investing Cash Flow	-1.41B	-342.32M	-963.75M	-1.26M	36.52M	256.64M
Financing Cash Flow	-972.50M	-782.58M	-408.22M	-148.42M	-399.28M	-1.65B

Atlassian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 75.98 is below the 20-day moving average (MA) of 102.91, below the 50-day MA of 132.19, and below the 200-day MA of 167.70, indicating a bearish trend. The MACD of -15.61 indicates Positive momentum. The RSI at 18.15 is Positive, neither overbought nor oversold. The STOCH value of 5.57 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
WDAY	71 Outperform	$37.51B	58.79	7.34%	―	13.35%	-60.76%
HUBS	70 Outperform	$13.19B	275.14	2.31%	―	19.21%	75.32%
DDOG	65 Neutral	$43.05B	407.16	3.34%	―	26.63%	-46.13%
ADSK	64 Neutral	$48.70B	44.48	40.33%	―	15.62%	2.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEAM	56 Neutral	$22.13B	-111.57	-13.47%	―	19.51%	53.35%
SNOW	52 Neutral	$60.25B	-44.41	-53.32%	―	28.48%	-19.12%

Atlassian Corporate Events

Atlassian Names LinkedIn Veteran James Chuong as CFO

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. Chuong brings more than a decade of senior finance experience at LinkedIn, including oversight of financial planning, business operations, and international finance, as well as prior investment banking roles at major Wall Street firms.

Atlassian has set Chuong’s annual base salary at $600,000 with a target bonus of 75% of base pay and an initial $22 million grant of restricted stock units vesting quarterly over four years, along with a $2 million signing bonus subject to repayment if he departs within a year. The company also confirmed he will be covered by its executive severance plan and a standard indemnification agreement, and noted there are no related-party transactions or special arrangements underlying his appointment, underscoring standard governance practices for this leadership transition.

The most recent analyst rating on (TEAM) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

Atlassian Appoints Google Executive Anil Sabharwal as Director

On January 15, 2026, Atlassian’s board of directors approved the appointment of Anil Sabharwal, a Vice President of Product at Alphabet’s Google and former technical advisor to Atlassian’s Williams Racing Formula One partnership, as a director of the company effective February 1, 2026. Sabharwal will receive the standard non-employee director compensation package, including a pro-rated cash retainer and restricted stock unit awards that vest within a year or at the next annual shareholder meeting, with full acceleration upon a sale of the company, and will be covered by Atlassian’s standard indemnification agreement; the company stated there are no special arrangements, related-party transactions, or material interests involving Sabharwal, and any current or future commercial dealings with Google will continue to be conducted at arm’s length under its related-party policy.

The most recent analyst rating on (TEAM) stock is a Buy with a $262.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

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.