Atlassian (TEAM)
NASDAQ:TEAM
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Atlassian
(NASDAQ:TEAM)
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Rating:56Neutral
Price Target:
$67.00
▲(3.35% Upside)
Action:ReiteratedDate:03/12/26
The score is primarily supported by strong cash flow and high gross margins, alongside constructive mid-term guidance and robust cloud/enterprise metrics. However, a very weak technical trend, lack of earnings-based valuation support (negative P/E), and near-term headwinds (Data Center decline and restructuring charges) materially constrain the overall rating.
Positive Factors
Cash generation
Sustained operating and free cash flow at ~$1.3B TTM provides durable internal funding for cloud migrations, AI investments, and enterprise sales expansion. Strong cash conversion reduces reliance on external financing and supports multi-year product and GTM investments needed to reach consistent profitability.
Negative Factors
Data Center revenue headwind
A material decline in Data Center revenue from customer transitions to cloud creates a persistent near-term revenue drag and complicates year-over-year growth comparisons. The timing and pace of migrations determine how quickly cloud upsell offsets lost DC revenue, introducing execution and forecasting risk over the coming 2-6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating and free cash flow at ~$1.3B TTM provides durable internal funding for cloud migrations, AI investments, and enterprise sales expansion. Strong cash conversion reduces reliance on external financing and supports multi-year product and GTM investments needed to reach consistent profitability.
Read all positive factors
Atlassian (TEAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.16B
Dividend YieldN/A
Average Volume (3M)6.03M
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth19.51%
EPS Growth53.35%
CountryUS
Employees12,157
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.22
Shares Outstanding169,610,460
10 Day Avg. Volume4,632,883
30 Day Avg. Volume6,025,630
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 Cap0.99
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda1.48K
Forecast
1Y Price Target
$165.80Price Target Upside155.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)4.75
Revenue Forecast (FY)$6.37B
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 makes money primarily by selling subscriptions to its software products, with revenue historically reported across three main streams: (1) Subscription revenue: Recurring fees for Atlassian Cloud (SaaS) offerings such as Jira, Confluence...
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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented numerous strong operational and financial highlights: record cloud revenues, a $6B+ ARR milestone, robust backlog and retention metrics (RPO +44% to $3.8B; NRR >120%), rapid AI adoption (Robo >5M MAU) and meaningful enterprise traction (record >$1M ACV deals, Teamwork Collection >1M seats). Offsetting these positives are near‑term headwinds tied to the Data Center reset, continued market skepticism reflected in adverse stock reactions, and ongoing scrutiny around pricing/AI consumption models. Management reiterated confidence in mid‑term targets and emphasized cost management and migration tailwinds, supporting a constructive long‑term view despite some short‑term uncertainty.Positive Updates
Record Cloud Quarter and ARR Milestone
Surpassed $6.0 billion in annual run rate revenue and delivered the first-ever $1.0 billion cloud revenue quarter, with cloud revenue up 26% year‑over‑year.
Negative Updates
Data Center (DC) Revenue Headwind
Management warned the Data Center segment will be down meaningfully next year on the back of a tough comparable and ongoing customer transitions to cloud, representing a near‑term revenue headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Cloud Quarter and ARR Milestone
Surpassed $6.0 billion in annual run rate revenue and delivered the first-ever $1.0 billion cloud revenue quarter, with cloud revenue up 26% year‑over‑year.
Read all positive updates
Company Guidance
Atlassian reiterated its mid‑term guidance of 20%+ compounded annual revenue growth through FY2027 and a 25%+ non‑GAAP operating margin target for FY2027, while taking a conservative, risk‑adjusted near‑term stance for FY2026 and warning the Data Center segment will be meaningfully down next year. Management said cloud will drive healthy revenue growth over the next two years, with migrations expected to contribute a mid‑ to high‑single‑digit lift to cloud revenue this year (Q2 already delivered a mid‑ to high‑single‑digit contribution), and pointed to supporting metrics: $6B+ annual run rate, a first‑ever $1B cloud quarter (up 26% YoY), RPO up 44% YoY to $3.8B, NRR north of 120% and rising, a record number of >$1M ACV deals (nearly doubled YoY), Teamwork Collection surpassing 1M seats in under nine months, Robo >5M MAU, service collection >65k customers with enterprise growth >60% YoY, and improving gross margins as evidence they can manage AI costs.Atlassian Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| 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
Negative
64.83
Price Trends
83.89
Negative
117.58
Negative
146.45
Negative
Market Momentum
-5.10
Negative
33.21
Neutral
29.28
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 64.83 is below the 20-day moving average (MA) of 71.14, below the 50-day MA of 83.89, and below the 200-day MA of 146.45, indicating a bearish trend. The MACD of -5.10 indicates Negative momentum. The RSI at 33.21 is Neutral, neither overbought nor oversold. The STOCH value of 29.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $32.77B | 66.22 | 7.97% | ― | 13.35% | -60.76% | |
67 Neutral | $49.58B | 47.92 | 39.89% | ― | 15.62% | 2.59% | |
66 Neutral | $12.00B | 458.50 | 2.30% | ― | 19.21% | 75.32% | |
65 Neutral | $41.11B | 438.37 | 3.24% | ― | 26.63% | -46.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $17.16B | -250.38 | -13.32% | ― | 19.51% | 53.35% | |
56 Neutral | $51.59B | -48.84 | -60.27% | ― | 28.48% | -19.12% |
* Technology Sector Average
TEAM
Atlassian
64.83
-144.79
-69.07%
ADSK
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234.96
-28.57
-10.84%
WDAY
Workday
127.51
-103.91
-44.90%
HUBS
HubSpot
227.61
-321.44
-58.54%
DDOG
Datadog
116.54
19.10
19.60%
SNOW
Snowflake
149.24
-1.91
-1.26%
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...
Executive/Board Changes
Atlassian Appoints Google Executive Anil Sabharwal as Director
Positive
Jan 15, 2026
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,...
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.