Atlassian (TEAM) AI Stock Analysis

• Market Cap: $19.91B
• Dividend Yield: N/A
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• 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: 6,884,526
• 30 Day Avg. Volume: 7,576,593
• 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: 1.02
• Enterprise Value/Revenue: 3.52
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 1.77K
• 1Y Price Target: $164.38
• Price Target Upside: 118.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 4.74
• Revenue Forecast (FY): $6.37B

• Rating: 56 Neutral
• Price Target: $80.00 ▲(6.37% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 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

Strong cash generation

Consistent, large operating and free cash flow provides durable internal funding for cloud migrations, AI investments, and debt reduction. That cash conversion reduces external financing needs, supports multi-year product investments, and underpins the company’s path to sustained profitability.

Cloud & enterprise momentum

Large ARR, rising RPO and >120% NRR indicate sticky subscription revenue and growing enterprise adoption. Record >$1M ACV deals and Teamwork seat gains show durable upsell and multi-year commitments, improving revenue visibility and supporting long-term scalable growth.

High gross margins & product economics

Very high gross margins reflect low incremental costs for SaaS delivery and strong pricing power. This margin profile gives room to absorb AI infrastructure costs, invest in R&D and sales, and move toward the company’s targeted operating margins as scale and cloud mix improve.

Negative Factors

Data Center revenue decline

A material Data Center revenue decline creates a structural near-term headwind as customers migrate to cloud, pressuring reported growth rates and complicating year-over-year comps. Transition dynamics can require discounting or incentives that temporarily compress margins and bookings.

Persistent net losses

Ongoing negative net margins and returns mean the company has not yet converted strong top-line and cash dynamics into consistent GAAP profitability. Continued losses can constrain strategic flexibility, raise scrutiny on cost structure, and require execution to validate mid-term margin targets.

Restructuring & execution risk

Large workforce reductions and leadership changes to fund an AI-first strategy increase execution risk. Reallocating talent while preserving product velocity and enterprise sales momentum is difficult; missteps could slow migrations, harm retention, or delay margin improvement.

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 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, Jira Service Management, and Trello, typically priced per user (and for some products also by tier/feature set) and billed monthly or annually. Atlassian also sells subscriptions for self-managed deployments under its Data Center product line, which are term-based subscriptions that include ongoing updates and support entitlements. (2) Maintenance and support: For certain self-managed offerings (particularly legacy on-premise/server-era arrangements and some enterprise support programs), customers pay for maintenance/support to receive updates, technical support, and related services; as Atlassian has emphasized cloud and Data Center subscriptions, this stream is generally less central than subscription revenue. (3) Other revenue: This includes fees from marketplace and platform-related activities such as the Atlassian Marketplace ecosystem, where third-party app developers sell integrations and extensions for Atlassian products; Atlassian earns revenue via marketplace-related fees/rev share and associated platform services. Additional contributors can include enterprise services (e.g., advisory or success offerings where applicable) and other product-related revenues. Key factors influencing earnings include expansion within existing customers through seat growth and upgrades to higher tiers, adoption of Atlassian Cloud versus self-managed deployments, and ecosystem strength driven by integration partners and marketplace apps that increase product stickiness and adoption.

Atlassian Financial Statement Overview

Summary

Strong cash generation (TTM operating cash flow ~$1.32B; free cash flow ~$1.27B) and very high gross margins (~82–84%) support underlying business quality, and leverage has improved (debt-to-equity ~0.89). Offsetting this, net margin remains negative (~-3.4%) with negative ROE (~-13.9%), so consistent profitability is still unproven.

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: 75.21
• 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 Negative. The current price of 75.21 is below the 20-day moving average (MA) of 77.66, below the 50-day MA of 106.46, and below the 200-day MA of 157.37, indicating a bearish trend. The MACD of -7.87 indicates Negative momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 26.28 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
HUBS	70 Outperform	$13.94B	458.50	2.30%	―	19.21%	75.32%
WDAY	69 Neutral	$34.20B	66.22	7.97%	―	13.35%	-60.76%
ADSK	67 Neutral	$53.00B	47.92	39.89%	―	15.62%	2.59%
DDOG	65 Neutral	$43.93B	438.37	3.24%	―	26.63%	-46.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SNOW	60 Neutral	$61.14B	―	-60.27%	―	28.48%	-19.12%
TEAM	56 Neutral	$19.91B	-250.38	-13.32%	―	19.51%	53.35%

Atlassian Corporate Events

Atlassian Restructures Workforce to Accelerate AI-Driven Strategy

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 $225 million to $236 million, largely tied to severance and office space reductions, mostly in the third quarter of fiscal 2026, while reaffirming its financial guidance for the March and June 2026 reporting periods.

Management framed the layoffs as a move to self-fund further investment in AI and enterprise sales, accelerate the path to sustained GAAP profitability, and reorganize around its “System of Work” to move faster. As part of the overhaul, Atlassian said Chief Technology Officer Rajeev Rajan will step down effective March 31, 2026, with AI-focused leaders Taroon Mandhana and Vikram Rao promoted into new CTO roles, underscoring a deeper strategic pivot toward AI and large-enterprise customers.

The measures are expected to reshape the company’s skill mix as it positions itself as an AI-first software provider, while offering enhanced separation packages and support to departing staff. The changes signal a bid to meet higher investor expectations on growth and profitability across the software sector, even as Atlassian highlights recent momentum in cloud revenue, large-account growth and usage of its AI products.

The most recent analyst rating on (TEAM) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Atlassian stock, see the TEAM Stock Forecast page.

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.