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Atlassian
(NASDAQ:TEAM)
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Rating:67Neutral
Price Target:
$162.00
▲(86.46% Upside)
Action:Downgraded
Date:08/09/26
TEAM scores well primarily due to very strong, durable free cash flow and improving business momentum supported by upbeat earnings-call KPIs (cloud growth, RPO and NRR). The score is held back by ongoing GAAP losses and only mid-level balance-sheet strength, plus valuation risk from a negative P/E; technically, the uptrend is strong but appears overbought, raising near-term volatility risk.
Positive Factors
Robust free cash flow
Atlassian's strong, growing free cash flow and consistent operating cash generation provide durable financial flexibility. High cash conversion supports continued product investment, platform development and optional uses (deleveraging, strategic M&A, or shareholder returns) without depending on volatile earnings.
Negative Factors
Persistent GAAP profitability weakness
Despite revenue and cash strength, reported profitability remains weak and volatile. Ongoing GAAP losses and fluctuating operating margins constrain return generation for shareholders and may require continued reinvestment or margin rebuilding, limiting durable EPS improvement in the near term.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow
Atlassian's strong, growing free cash flow and consistent operating cash generation provide durable financial flexibility. High cash conversion supports continued product investment, platform development and optional uses (deleveraging, strategic M&A, or shareholder returns) without depending on volatile earnings.
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
$41.17B
Dividend YieldN/A
Average Volume (3M)3.89M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth26.02%
EPS Growth81.08%
CountryUS
Employees13,301
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.21
Shares Outstanding159,005,200
10 Day Avg. Volume3,658,757
30 Day Avg. Volume3,890,982
Financial Highlights & Ratios
PEG Ratio4.71
Price to Book (P/B)19.12
Price to Sales (P/S)3.08
P/FCF Ratio15.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$182.00Price Target Upside109.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)5.53
Revenue Forecast (FY)$7.46B
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 makes money primarily by selling subscriptions to its software products, with revenue largely driven by cloud-based subscriptions. Customers pay recurring fees (typically tied to the number of users/seats and the specific product tiers/f...
Atlassian Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based operational momentum: double-digit revenue and cloud growth, large-deal acceleration, significant AI adoption (Rovo) with measurable efficiency gains, robust RPO and NRR, and maintained Q4 GAAP profitability. Management set a more prudent full-year ARR guide (18%) and lowered near-term margin guidance relative to Q4 (FY27 GAAP ~4.5%) due to macro uncertainty and cautious planning, and consumption-based AI monetization is still nascent. Overall the positive growth, enterprise traction and AI-driven upside materially outweigh the conservative guidance and early-stage monetization risks.Positive Updates
Strong Total and Cloud Revenue Growth
Total revenue grew 28% year-over-year to $1.8 billion; cloud revenue accelerated 31% year-over-year to $1.2 billion, with a $49 million beat in cloud revenue in Q4.
Negative Updates
More Prudential Full-Year ARR Guidance
Subscription ARR guidance for fiscal 2027 was set at 18% growth (initial guide), below the quarter's printed 23% ARR growth, reflecting a moderating outlook for the year ahead.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Total and Cloud Revenue Growth
Total revenue grew 28% year-over-year to $1.8 billion; cloud revenue accelerated 31% year-over-year to $1.2 billion, with a $49 million beat in cloud revenue in Q4.
Read all positive updates
Company Guidance
Atlassian set initial fiscal 2027 guidance calling for subscription ARR growth of 18% (down from FY26’s 23% subs ARR growth) while taking a prudent stance as they lap the DX acquisition (which added ~1 point to FY26 ARR) and weigh macro uncertainty; they guided a Q1 GAAP operating margin of 6.5% and a full‑year FY27 GAAP operating margin of 4.5%. For context, management closed FY26 with total revenue up 28% to $1.8B, cloud revenue $1.2B (+31% YoY), RPO up 44% to $4.8B, Q4 GAAP operating margin of 12%, and NRR north of 120%; they said DC‑to‑cloud migrations contributed mid‑to‑high single digits to cloud growth, Teamwork customers have 4–5x more paid seats per instance, $3M ARR customers grew ~50% YoY (164 customers), $5M+ ARR customers grew ~70% YoY (69 customers) on a $6.6B ARR base, Rovo is used by >80% of the Fortune 500 with Rovo‑assisted actions +50% QoQ and adopters growing ARR >2x non‑adopters, MCP/server users exceeded 1M with MCP calls up ~400% QoQ — all cited as drivers behind the company’s cautious but confident FY27 outlook.Atlassian Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
84
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.57B | 5.22B | 4.36B | 3.53B | 2.80B |
| Gross Profit | 5.58B | 4.32B | 3.56B | 2.90B | 2.35B |
| EBITDA | 151.02M | 24.03M | 27.41M | -220.07M | -377.73M |
| Net Income | -53.83M | -256.69M | -300.52M | -486.76M | -519.51M |
Balance Sheet | |||||
| Total Assets | 6.10B | 6.04B | 5.21B | 4.11B | 3.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 2.94B | 2.34B | 2.11B | 1.46B |
| Total Debt | 1.23B | 1.24B | 1.25B | 1.28B | 1.31B |
| Total Liabilities | 5.05B | 4.70B | 4.18B | 3.45B | 3.00B |
| Stockholders Equity | 1.06B | 1.35B | 1.03B | 654.67M | 327.37M |
Cash Flow | |||||
| Free Cash Flow | 1.32B | 1.42B | 1.42B | 842.30M | 750.46M |
| Operating Cash Flow | 1.35B | 1.46B | 1.45B | 868.11M | 821.04M |
| Investing Cash Flow | -806.89M | -342.32M | -963.75M | -1.26M | 36.52M |
| Financing Cash Flow | -1.80B | -782.58M | -408.22M | -148.42M | -399.28M |
Atlassian Technical Analysis
Positive
86.88
Price Trends
100.08
Positive
89.47
Positive
107.82
Positive
Market Momentum
18.83
Negative
75.03
Negative
91.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEAM, the sentiment is Positive. The current price of 86.88 is below the 20-day moving average (MA) of 118.83, below the 50-day MA of 100.08, and below the 200-day MA of 107.82, indicating a bullish trend. The MACD of 18.83 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 91.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $53.10B | 35.02 | 49.42% | ― | 18.88% | 46.42% | |
75 Outperform | $11.18B | 76.06 | 7.75% | ― | 21.08% | ― | |
72 Outperform | $49.07B | 59.37 | 10.41% | ― | 13.70% | 76.27% | |
69 Neutral | $91.73B | 497.43 | 4.57% | ― | 31.52% | 37.42% | |
67 Neutral | $41.17B | -754.00 | -4.39% | ― | 26.02% | 81.08% | |
66 Neutral | $114.00B | -93.78 | -57.21% | ― | 31.07% | 16.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TEAM
Atlassian
158.34
-7.87
-4.73%
ADSK
Autodesk
241.64
-47.60
-16.46%
WDAY
Workday
191.18
-38.61
-16.80%
HUBS
HubSpot
215.17
-227.97
-51.44%
DDOG
Datadog
247.32
118.33
91.74%
SNOW
Snowflake
330.11
137.48
71.37%
Atlassian Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Atlassian Posts Strong Q4 Results and AI Momentum
Positive
Aug 6, 2026
On August 6, 2026, Atlassian reported strong results for its fourth quarter and fiscal year ended June 30, 2026, highlighted by Q4 revenue of $1.77 billion, up 28% year-over-year, and cloud revenue of $1.21 billion, up 31%. Subscription annualized...
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.