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Atlassian
(NASDAQ:TEAM)
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Rating:55Neutral
Price Target:
$77.00
▲(15.03% Upside)
Action:Reiterated
Date:06/27/26
The score is primarily supported by strong cash generation and a constructive earnings-call backdrop (cloud growth, RPO expansion, and NRR >120%). It is held back by continued GAAP losses and balance-sheet leverage, and further pressured by weak technicals with the stock trading well below major moving averages and a negative MACD.
Positive Factors
Free Cash Flow Strength
Consistently strong free cash flow (TTM ~ $1.2B) provides durable internal funding for R&D, cloud migration investments and enterprise GTM. High cash conversion versus GAAP losses (~0.96 FCF/net income) cushions operations and supports strategic optionality over the next several quarters.
Negative Factors
Balance Sheet Leverage
Meaningful leverage (debt-to-equity ~1.41) and volatile equity reduce financial flexibility versus higher-rated software peers. Elevated debt increases interest and refinancing risk, constraining capital allocation for M&A or cushioning during slower subscription cycles over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently strong free cash flow (TTM ~ $1.2B) provides durable internal funding for R&D, cloud migration investments and enterprise GTM. High cash conversion versus GAAP losses (~0.96 FCF/net income) cushions operations and supports strategic optionality over the next several quarters.
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
$21.28B
Dividend YieldN/A
Average Volume (3M)6.20M
Price to Earnings (P/E)―
Beta (1Y)1.60
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. Volume4,595,024
30 Day Avg. Volume6,198,726
Financial Highlights & Ratios
PEG Ratio13.36
Price to Book (P/B)39.51
Price to Sales (P/S)10.19
P/FCF Ratio37.56
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue3.60
Enterprise Value/Gross Profit4.29
Enterprise Value/Ebitda-1.14K
Forecast
1Y Price Target
$129.71Price Target Upside93.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)6.2
Revenue Forecast (FY)$7.40B
Atlassian Business Overview & Revenue Model
Company Description
Atlassian Corporation, operating globally via its subsidiaries, specializes in creating, distributing, and supporting a diverse range of software solutions. Its extensive product suite features Jira Software and Jira Work Management, comprehensive...
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 | -19.56M | 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 | 756.64M |
| Operating Cash Flow | 1.25B | 1.46B | 1.45B | 868.11M | 821.04M | 789.96M |
| Investing Cash Flow | -935.40M | -342.32M | -963.75M | -1.26M | 36.52M | 259.26M |
| Financing Cash Flow | -1.83B | -782.58M | -408.22M | -148.42M | -399.28M | -1.60B |
Atlassian Technical Analysis
Neutral
66.94
Price Trends
86.43
Negative
79.99
Positive
115.64
Negative
Market Momentum
-2.54
Positive
48.14
Neutral
62.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAM, the sentiment is Neutral. The current price of 66.94 is below the 20-day moving average (MA) of 86.53, below the 50-day MA of 86.43, and below the 200-day MA of 115.64, indicating a bearish trend. The MACD of -2.54 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 62.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $92.68B | 676.61 | 3.78% | ― | 29.54% | -21.11% | |
72 Outperform | $9.84B | 100.68 | 5.02% | ― | 21.05% | ― | |
69 Neutral | $43.78B | 30.07 | 49.42% | ― | 18.88% | 46.42% | |
63 Neutral | $33.44B | 42.05 | 10.41% | ― | 13.70% | 76.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $90.17B | -73.91 | -57.21% | ― | 31.07% | 16.46% | |
55 Neutral | $21.28B | -100.90 | -16.70% | ― | 24.74% | 49.81% |
* Technology Sector Average
TEAM
Atlassian
83.84
-129.69
-60.74%
ADSK
Autodesk
207.48
-109.18
-34.48%
WDAY
Workday
135.40
-106.36
-43.99%
HUBS
HubSpot
192.12
-368.74
-65.75%
DDOG
Datadog
260.36
107.95
70.83%
SNOW
Snowflake
260.15
38.66
17.45%
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.