Atlassian v srpnu vyskočil o 92,2 % po zveřejnění výsledků, které výrazně překonaly odhady: tržby vzrostly o 28 % na 1,77 miliardy USD a upravený EPS o 98 % na 1,87 USD.
Shares of Atlassian (TEAM -2.62%) skyrocketed in August, gaining 92.2%, according to data supplied by S&P Global Market Intelligence. That's orders of magnitude higher than the 2.6% gains of the S&P 500.
The enterprise software specialist helped dispel the popular narrative that artificial intelligence (AI) would eliminate the need for its popular software-as-a-service (SaaS) offerings, sending the stock on a blistering rebound.
Image source: Getty Images.
The numbers tell the taleAtlassian helped calm shareholder fears when the company reported financial results that far exceeded expectations and offered robust guidance for the coming year. Strong demand for Atlassian's workplace collaboration software -- which includes Trello, Jira, and Confluence -- put a nail in the SaaS-pocalypse once and for all.
For Atlassian's fiscal 2026 fourth quarter (ended June 30), the company generated revenue that grew 28% year over year to $1.77 million. Expanding operating margins drove profitability higher, as adjusted earnings per share (EPS) soared 98% to $1.87.
For context, analysts' consensus estimates called for revenue of $1.66 billion and EPS of $1.50, so to say Atlassian beat expectations was an understatement.
The results were driven by strength across the company's business. Cloud revenue grew 31% to $1.2 billion. Subscription annual recurring revenue (ARR) rose 23% to $6.6 billion, putting a floor under the company's future results. Moreover, Atlassian's remaining performance obligation (RPO) -- or contractually obligated revenue that hasn't yet been recognized -- jumped 44% to $4.8 billion. This provides insight into the company's future trajectory, which looks decidedly positive.
Atlassian also reported an all-time record quarter for deals worth $1 million, $3 million, and $5 million or more in annual contract value (ACV). In fact, ARR from $3 million customers grew more than 50% year over year, while $5 million deals jumped 70%.
While some investors feared AI would scuttle Atlassian's progress, it actually accelerated it. The company's Rovo AI helps customers find information, interact with data, and automate workflows, and customers are adopting the tool at a brisk pace. Rovo-assisted actions surged 50% quarter over quarter, with Rovo users completing 20% more work items in Jira than non-users, while also creating or editing 25% more Confluence pages than non-users.
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If there were any doubts that the good times would continue, Atlassian left little doubt. For fiscal 2027, the company forecast total revenue growth of 13%, cloud growth of 25.5%, and subscription ARR growth of 18%. While those benchmarks might seem modest compared to the current quarter, it was ahead of Wall Street's expectations.
Speaking of Wall Street, on the heels of Atlassian’s blockbuster quarter, analysts rushed to revise their financial models, resulting in a wave of upgrades, positive initiations, and price target increases, helping fuel the stock's momentum.
Investor enthusiasm pushed the stock skyward, with a corresponding increase in Atlassian's valuation. The stock is no longer a screaming bargain, but at 28 times next year's expected earnings, the price is reasonable.
Now that fears of the SaaS-pocalypse have been put to rest, Atlassian's track record of growth, strong backlog, and increasing subscription base make the stock a buy.
Atlassian hlásí silné přijetí Rovo: používá ho přes 80 % Fortune 500 a uživatelé Rovo zvyšují ARR více než dvojnásobným tempem. Subscription ARR ve 4. čtvrtletí fiskálního roku 2026 vzrostl meziročně o 23 %.
Key Takeaways Atlassian's Rovo is used by more than 80% of the Fortune 500, with usage up 50% sequentially.Rovo users are growing ARR at more than twice the rate of customers that do not use Rovo.Atlassian can drive more seats and revenues through Rovo upgrades, Teamwork Collection and cross-selling. Atlassian Corporation (TEAM - Free Report) is seeing strong adoption of Rovo, which could help drive customer expansion and ARR growth. In the fourth quarter of fiscal 2026, subscription ARR increased 23% year over year. Rovo is now used by more than 80% of the Fortune 500, while Rovo-assisted actions increased 50% sequentially. Further, customers using Rovo are growing their ARR at more than twice the rate of customers that do not use Rovo. The strong adoption and higher usage suggest that Rovo is becoming an important part of Atlassian's efforts to increase spending within its existing customer base.
Rovo is also helping Atlassian increase revenues from existing customers. As Rovo usage rises, customers are buying more Rovo credits. Teamwork Collection offers about 10 times more Rovo credits and is encouraging customers to upgrade and add seats. Atlassian said these upgrades are helping increase average revenue per user. Teamwork Collection customers also have 4-5 times more paid seats per instance than stand-alone Jira or Confluence customers. This gives Atlassian an opportunity to convert higher Rovo usage into more seats, broader product adoption and higher revenue per customer.
Higher AI adoption is also helping Atlassian's cloud business. Cloud revenues increased 31% year over year in the fourth quarter. Management said cross-selling and seat expansion were the main drivers behind the strong cloud momentum. The company also saw strong adoption of Teamwork Collection and Service Collection, while customers continued to add Jira and Confluence seats. As customers use AI across more teams and workflows, Atlassian could have more opportunities to expand its platform within large enterprise accounts.
Atlassian has further room to grow within its existing customer base. Management estimates about $14 billion of opportunity from existing customers without changing products or pricing. These factors suggest that if Rovo usage continues to increase and drives more upgrades, seats and cross-selling, it could help Atlassian support ARR growth. The Zacks Consensus Estimate for TEAM's fiscal 2027 and 2028 revenues indicates year-over-year growth of 13% and 14.8%, respectively.
Atlassian Faces Stiff CompetitionAtlassian faces stiff competition from other key players in the cloud software industry such as Salesforce (CRM - Free Report) and ServiceNow (NOW - Free Report) .
Salesforce competes with Atlassian through offerings such as Agentforce, Data Cloud and Slack, which together create a unified ecosystem that connects customer data with integrated AI across systems, apps and devices. In the first quarter of fiscal 2027, Agentforce’s ARR surpassed $1 billion, up in triple digits year over year. Salesforce expects this momentum to continue in fiscal 2027, on the back of robust customer demand for its agentic offerings.
ServiceNow is seeing strong demand for its Agentic AI products as enterprises look to automate more work and improve productivity. The company is expanding AI across IT, customer service, employee service and security. Management said customers now want AI that can complete tasks and deliver clear business value instead of simply assisting employees. This is helping drive adoption of the company's AI offerings. AI annual contract value (ACV) crossed $1 billion during the second quarter of 2026, and ServiceNow expects AI ACV to exceed $1.5 billion by the end of 2026.
TEAM’s Price Performance, Valuation & EstimatesTEAM shares have jumped 5.6% in the year-to-date period against the Zacks Internet - Software industry’s decline of 4.3%.
TEAM YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Atlassian trades at a forward 12-month price-to-sales ratio of 5.73X compared with the industry’s 3.93X. TEAM has a Value Score of F.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM's fiscal 2027 earnings is pegged at $5.52 per share, revised down by 6.6% over the past 30 days, indicating a year-over year decline of 5.6%.
Image Source: Zacks Investment Research
TEAM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlassian uvedl, že cloudový růst táhnou upgrady na Teamwork Collection a vyšší využití Rovo AI. Subscription ARR ve čtvrtletí vzrostl meziročně o 23 %.
MarketBeat Week in Review – 08/10 - 08/14Atlassian NASDAQ: TEAM said its cloud business momentum continued through the fourth quarter of fiscal 2026, supported by customer upgrades, cross-selling activity and expanding paid seats across both software development and non-technical teams.
Speaking at a KeyBanc conference, Martin Lam, Atlassian’s head of investor relations, said cloud outperformance was driven by upgrades to the company’s Teamwork Collection and cross-sell activity into its Service Collection. Customers upgrading to Teamwork Collection receive 10 times the number of Rovo AI credits, which Lam said has become a primary driver of adoption.
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Atlassian Just Pulled Off the Software Comeback Wall Street Wanted“Customers are upgrading for that additional AI capability,” Lam said, adding that the company also saw continued seat expansion in Jira and Confluence.
Seat Growth Extends Beyond Developers Lam said the company’s seat expansion spanned both software developers and knowledge workers, including teams in human resources, marketing, legal and finance. Atlassian previously disclosed that roughly two-thirds of Jira users and about 70% of Confluence users are knowledge workers or non-software developers.
Atlassian’s AI Pivot Is Starting to Challenge Wall Street’s Bear CaseHe said artificial intelligence is lowering the cost of software development and enabling more businesses to develop digital products and services. However, the resulting growth in work also increases the need for coordination across organizations, Lam said.
Atlassian’s platform is designed to help companies manage, track and plan work across teams, according to Lam. He pointed to the Teamwork Graph, a contextual layer within the platform that connects information, workflows, tools and people.
Lam said the Teamwork Graph can improve AI results by providing context from products including Jira and Confluence. He said Atlassian has found the technology delivers 48% more efficient token usage and 44% better results, as it reduces the need for AI systems to search broadly across an organization without contextual relationships.
Profitability Focus Shifts Toward GAAP Metrics On margins, Lam said Atlassian is increasingly focused on GAAP operating margins as part of its effort to deliver “durable, profitable growth.” The company reported GAAP profitability in the fourth quarter and guided for fiscal 2027 GAAP operating margin of 4.5%, compared with approximately flat GAAP operating margin at the end of fiscal 2026.
Lam said non-GAAP comparisons are affected by several accounting and compensation-related factors. The end of life for Atlassian’s data center product created changes under ASC 606 revenue recognition rules, producing about a four-point benefit to fiscal 2026 non-GAAP operating margin because more subscription revenue was recognized upfront.
For fiscal 2027, the company expects a roughly three-point non-GAAP margin headwind from changing compensation mix between cash and equity for certain employees and roles. Excluding those factors, Lam said non-GAAP operating margins would increase.
Subscription ARR Introduced to Address Migration Noise Atlassian introduced subscription annual recurring revenue as a measure intended to provide a clearer view of its subscription business during the transition away from data center offerings and toward cloud services.
The company reported 23% year-over-year subscription ARR growth in the quarter and initially guided for subscription ARR to grow 18% year-over-year by the end of fiscal 2027. Lam said the measure includes both cloud and data center subscriptions and helps reduce the accounting and timing effects associated with customer migrations.
He cautioned that quarterly ARR performance can vary as Atlassian changes data center pricing, sales compensation structures and partner alignments to support its cloud migration. The company had previously cited customer purchasing that shifted from the fourth quarter into the third quarter following data center pricing changes.
AI Monetization and Enterprise Expansion Lam said Teamwork Collection is currently Atlassian’s main AI monetization vehicle because it gives customers a larger, more predictable pool of Rovo credits at a higher price per user. The company plans to begin enforcing Rovo credit limits during the year, while usage- or consumption-based pricing could become more significant over time.
According to Lam, customers adopting Rovo are growing ARR at twice the rate of customers that do not use the AI offering. Atlassian also has more than 1 million monthly active users of its MCP server and Teamwork Graph command-line interface, which allow third-party AI agents to access Atlassian’s platform. Users of those tools are creating four times as many Jira work items and Confluence pages, Lam said, while growing ARR at twice the rate of non-users.
Service Collection surpassed $1 billion in ARR during the third quarter and was growing more than 30% year over year at that time, Lam said. Growth accelerated in the fourth quarter as customers expanded deployments beyond IT workflows. More than 60% of Service Collection use cases are outside IT, he said, while Rovo agentic automations in the offering increased threefold over a six-month period.
Lam also highlighted Atlassian’s enterprise opportunity. The company has about 400 quota-carrying enterprise sales representatives and 350,000 customers, with many initial customer deployments beginning in relatively small teams before expanding across the organization. He said remaining performance obligations grew 44% year over year, while the cohort of customers spending more than $3 million annually grew more than 50%.
About Atlassian (NASDAQ:TEAM)Atlassian Corporation Plc is a software company headquartered in Sydney, Australia, best known for developing collaboration, project management and software development tools. Founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, Atlassian grew from a small engineering-focused team into a publicly traded company after its initial public offering in 2015. The company serves a global customer base that spans small teams to large enterprises across technology, financial services, government and other sectors.
Atlassian's product portfolio centers on tools designed to help teams plan, build and support software and business processes.
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Salesforce oznámil, že ARR platformy Agentforce přesáhl 1 miliardu USD, protože zákazníci přecházejí od AI pilotů k nasazení do provozu. Atlassian naopak čeká ve fiskálním roce 2027 pomalejší růst ARR a nižší GAAP provozní marži kvůli vyšším výdajům na AI.
Key Takeaways Salesforce's Agentforce ARR topped $1 billion as customers increasingly deploy AI products in production.Atlassian expects slower ARR growth and lower GAAP operating margins in fiscal 2027 amid higher AI spending.Salesforce trades at 3.32X forward sales, below Atlassian's 5.44X, offering an attractive valuation. Atlassian (TEAM - Free Report) and Salesforce (CRM - Free Report) are two of the most important enterprise cloud software companies, helping large organizations modernize operations, automate workflows and manage critical business processes.
While both benefit from long-term digital transformation trends, their business momentum and execution profiles differ meaningfully. For investors trying to choose between these two software leaders, a closer look at their fundamentals, growth outlook and risks helps determine which stock currently offers a stronger investment case.
The Case for Atlassian StockAtlassian is seeing higher AI adoption help drive customer expansion. In the fourth quarter of fiscal 2026, revenues rose 28% year over year, while cloud revenues grew 31% year over year. Further, RPO increased 44% year over year, and subscription ARR grew 23% year over year. Management said customers are signing larger deals, adding more seats and using more Atlassian products as they adopt AI.
Rovo is playing an important role in this trend. More than 80% of Fortune 500 companies now use Rovo, while Rovo-assisted actions increased 50% sequentially in the fourth quarter. Atlassian said customers using Rovo are growing their ARR at more than twice the rate of non-adopters. The company is also seeing customers expand Rovo into more workflows and business functions, which could create more opportunities for cross-selling and seat expansion.
The Teamwork Graph is another key part of Atlassian's AI strategy. The graph now spans more than 200 billion objects and connections and is designed to give AI agents better access to enterprise data and context. Management said AI and the Teamwork Graph are among the top two reasons customers upgrade to the cloud and Teamwork Collection. The company also reported record activity in large enterprise deals, with customers generating more than $3 million in ARR growing over 50% year over year and those with more than $5 million growing over 70%.
However, Atlassian's long-term AI strategy requires significant upfront investment, which may continue to weigh on GAAP profitability despite strong revenue growth. Atlassian expects a 6.5% GAAP operating margin in the first quarter of fiscal 2027 and 4.5% for fiscal 2027 compared with a 12% GAAP operating margin in the fourth quarter of fiscal 2026. This shows that Atlassian expects significantly lower profitability in fiscal 2027 than it achieved in the latest quarter.
Further, Atlassian also expects subscription annual recurring revenue (ARR) growth to slow to 18% in fiscal 2027, down from 23% in fiscal 2026. Management said the fiscal 2027 outlook reflects caution around the macro environment, fiscal policy and geopolitical conditions. While demand in the fourth quarter remained strong, the combination of slower ARR growth and a drop in GAAP operating margin could limit earnings growth and might weigh on Atlassian’s ability to turn its strong AI and enterprise demand into higher profits in fiscal 2027.
The Case for Salesforce StockSalesforce's Agentforce platform is becoming one of the company's key growth drivers as customers increase spending on AI-powered products. Agentforce's ARR exceeded $1 billion in the first quarter of fiscal 2027, making Agentforce one of Salesforce's fastest-growing businesses. The strong momentum can be attributed to customers who are moving beyond AI pilots and deploying the technology in production.
Agentforce is also helping Salesforce generate larger deals. The company closed a record 98 deals worth more than $1 million in new annual contract value during the first quarter. Management stated that demand for Agentforce, Data 360 and Slack was a major contributor to this performance.
Customer expansion remains another important driver. About 50% of Agentforce and Data 360 bookings came from existing customers who increased their spending with Salesforce. Management noted that its top 10 customers by Agentforce usage increased their overall Salesforce spending by 1.5 times over the past year.
Usage trends indicate that adoption is still growing. During the first quarter, Salesforce processed 28.6 trillion AI tokens, up 152% sequentially, and generated 3.8 billion agentic work units, up 111% sequentially. Agentforce is being used across customer service, sales, IT and other business functions. Salesforce's own support organization has used Agentforce to handle more than four million customer inquiries.
The platform is also supporting growth across Salesforce's broader business. Bookings for premium AI offerings grew nearly 60% year over year in the first quarter. With Agentforce ARR exceeding $1 billion, along with growing customer adoption, the platform remains one of the key growth drivers for Salesforce and continues to play an important part in the company's long-term AI strategy.
How Do Earnings Estimates Compare for TEAM & CRM?CRM has a steady earnings growth outlook compared with TEAM.
The Zacks Consensus Estimate for TEAM’s fiscal 2027 EPS is pinned at $5.69, revised downward by 7 cents over the past seven days, indicating a year-over-year decline of 2.7%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRM’s fiscal 2027 EPS is pinned at $14.16, revised upward by 4 cents over the past 30 days, indicating year-over-year growth of 13.1%.
Image Source: Zacks Investment Research
TEAM vs. CRM: Price Performance and ValuationOver the past year, shares of TEAM and CRM have plunged 4.1% and 19.6%, respectively.
TEAM Vs. CRM: 1-Year Price Return Performance
Image Source: Zacks Investment Research
Currently, CRM is trading at a forward sales multiple of 3.32X, lower than TEAM’s forward sales multiple of 5.44X. CRM’s reasonable valuation makes it more attractive for investors looking for value and stability.
TEAM vs. CRM: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: CRM Has an Edge Over TEAMBoth Atlassian and Salesforce are well-positioned to benefit from the AI wave. However, Atlassian faces near-term risks from higher AI spending, lower expected GAAP operating margins and slower ARR growth, all of which could weigh on the company’s profitability in fiscal 2027.
In contrast, Salesforce shows steadier execution, where the company is witnessing strong adoption of its AI products and its earnings estimates are being revised upward. CRM’s reasonable valuation offers some downside protection as well, giving CRM a clear edge over TEAM.
Currently, CRM carries a Zacks Rank #3 (Hold), giving the stock a clear edge over TEAM, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlassian za poslední měsíc vzrostl o 74 % díky lepším než očekávaným čtvrtletním výsledkům. Tržby stouply o 28 % a cloudový segment zrychlil růst na 31 %.
Software stocks crashed at the start of 2026 amid growing fears that artificial intelligence would disrupt the growth of many enterprise software providers. But as many software companies seek to set themselves apart from the pack by demonstrating that AI benefits their businesses, the group has begun to recover.
Atlassian (TEAM -2.27%), for example, is up 74% over the past month, as of this writing. Even after that phenomenal growth, the stock has yet to recover its share price from the start of the year. What's more, it remains about 50% below its all-time high from the start of 2025.
But Atlassian looks poised to use its broad software suite and AI to drive higher financial results, and its stock price should follow suit. It can still climb much higher from here.
Image source: Getty Images.
What's driving the stock higher, and can it keep it up?
Shares of Atlassian have benefited from a broader rotation from chipmakers to software stocks, but its rise was fueled by much better-than-expected fourth-quarter earnings. The company grew revenue 28% year over year, driven by strong results from its cloud segment, which accelerated to 31% year-over-year revenue growth.
That's important because the company is migrating customers from on-premises data center deployments to its cloud platform by 2029. Management pulled forward a lot of data center revenue into the third quarter and expects a significant drop-off in sales over the next year. Management's full-year outlook calls for a 17% decline in data center revenue, resulting in an overall 13% deceleration in 2027.
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But Atlassian could outperform that guidance. It's worth noting that management expects its cloud revenue growth to come in at just 25.5% for the full year. That would suggest a considerable slowdown in the back half of the fiscal year.
That's despite management indicating very strong trends with its cloud customers, especially those using its AI platform, Rovo. Management said Rovo adopters are growing their annualized recurring revenue at twice the rate of non-adopters. Expanding Rovo's usage and driving adoption should help push more cloud revenue growth from its existing user base.
Management also continues to see solid performance in retention and expanding usage across teams within an organization. Net revenue retention exceeded 120%. What's more, the growth runway looks strong, with remaining performance obligations climbing 44% to $4.8 billion.
Even after the strong recovery, the stock trades for about 28.6 times forward earnings estimates. That's even though it could produce substantial earnings growth on top of its strong revenue growth over the coming years, thanks to the operating leverage of running a software business. Completing the migration to the cloud platform and sunsetting the on-premises software will also benefit operating margins by streamlining operations.
Overall, the stock still looks cheap and could keep climbing from here.
Atlassian vzrostl od dubnového 52týdenního minima 56 USD o 166 % a CEO Mike Cannon-Brookes řekl, že firma plánuje zpětný odkup akcií za 250 milionů USD. Tržby ve 4. čtvrtletí stouply o 28 % na 1,77 miliardy USD.
Most software stocks have plummeted during the past 12 months, as investors worry artificial intelligence (AI) will deal a blow to the software-as-a-service (SaaS) business model. The concerns are twofold:
If AI reduces the global workforce, SaaS companies that charge their customers on a per-user basis will suffer a sharp reduction in their revenue. AI programming tools like OpenAI's Codex and Anthropic's Claude Code technically make it easy to build replica software tools, which could render legacy SaaS providers obsolete. But during the past two quarters, Atlassian (TEAM +1.88%) has blown those concerns out of the water, and its stock has rocketed higher by 166% from its April 52-week low of $56. In fact, the story is now so positive that Chief Executive Officer Mike Cannon-Brookes just said the company plans to buy $250 million worth of Atlassian shares on the open market. Here's why investors might want to follow that lead.
Image source: Getty Images.
AI is proving to be a huge tailwind for Atlassian Atlassian's flagship products include Jira, which helps technical and non-technical teams manage their projects, and Confluence, which can serve as a digital town square for any organization, where employees can share important information and discuss work. In 2024, the company launched an AI platform called Rovo, which enhances Jira and Confluence with a host of powerful new features.
Rovo is incredibly versatile. It can serve as a coding assistant to rapidly help software developers resolve tickets in Jira, and it also powers a holistic search function that can rapidly locate information from across the entire organization, even if it's stored outside of an Atlassian product. Tech giant Cisco says it built AI agents with Rovo to automate reporting workflows, which has made some processes a whopping 40 times faster.
AI works best when it has context, because it can draw conclusions faster while keeping token costs at a minimum. Organizations run so much internal data and so many workflows through Atlassian's ecosystem that it's the ideal place to extract the most value from AI. In fact, the company says AI agents grounded in the Atlassian ecosystem produce 44% more accurate answers while consuming 48% fewer tokens, or units of data.
Atlassian has a treasure trove of data from more than 350,000 enterprise customers, so it knows exactly how they work and what problems they need to solve. This gives Rovo a huge head start over generic AI assistants, which lack that important contextual information -- and it's showing up in Atlassian's financial results, because the annual recurring revenue (ARR) it earns from Rovo adopters is growing twice as fast as the ARR from non-Rovo customers.
Soaring revenue and profits Atlassian generated $1.77 billion in revenue during the fourth quarter, which blew away Wall Street's average forecast of $1.66 billion. It also represented year-over-year growth of 28%, quelling concern that AI would be a drag on the company's sales -- in fact, it appears the exact opposite is true.
Atlassian's revenue could increase even faster, but it's prioritizing its bottom line by carefully managing costs. Its total operating expenses increased by just 11.8% during the fourth quarter, and since revenue grew significantly faster, this resulted in a generally accepted accounting principles (GAAP) profit of $139.1 million. That was a big swing from the $23.9 million net loss in the same quarter last year.
On an adjusted (non-GAAP) basis, which excludes one-off and noncash expenses like stock-based compensation, Atlassian generated a profit of $473.1 million in the fourth quarter, up by a whopping 83% from the year-ago period. It took the company's overall fiscal 2026 adjusted profit to $1.53 billion, up 56%.
The fact that Atlassian is growing quickly and profitably suggests investors were probably mistaken to assume the company would immediately succumb to the AI revolution.
Despite its recent gains, Atlassian stock is still attractively valued Although Atlassian stock is up 166% from its April low point (as of Aug. 10), it's still trading at a very attractive price-to-sales (P/S) ratio of 5.9, which is a steep discount to its three-year average of 10.2.
That suggests Atlassian stock would have to climb by more than 70% to match its average P/S ratio, which certainly is possible if the company continues to execute at a high level.
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I want to end with this thought: Replicating software tools like Jira and Confluence might be easy with AI-assisted programming products like Claude Code, but that is only a small part of the challenge. It takes infrastructure, security, and constant technical support to deploy enterprise software successfully, which can be extremely expensive. The economics typically only work at scale, which is why I predict it will be more affordable for businesses to continue paying Atlassian for the complete package instead.
Then there is reputational risk. When businesses build their own software, they also have to accept full responsibility if they suffer a cyber breach that results in stolen data. This can be devastating to the trust they have built with their customers, which is another reason using third-party vendors like Atlassian makes a lot more sense.
Simply put, I expect Atlassian to thrive for the foreseeable future.
Akcie Atlassianu vzrostly o více než 30 % poté, co společnost ve 4. čtvrtletí oznámila GAAP zisk a provozní marži 12 %. Tržby meziročně stouply o 28 % na 1,77 miliardy USD.
Shares of Atlassian (TEAM +35.31%) soared more than 30% Friday morning, as of this writing, after the collaboration-software company reported fiscal fourth-quarter results Thursday afternoon. The odd part is what the report actually said. Management expects subscription annual recurring revenue (ARR) to grow about 18% in fiscal 2027, a step down from the 23% rate the company just delivered.
A slower forecast usually punishes a software stock. So what did investors see that outweighed one?
I'd point to the profit line. Atlassian has spent years growing quickly while losing money under generally accepted accounting principles (GAAP). In the fiscal fourth quarter, the growth finally showed up with profits attached.
Image source: Getty Images.
A 28% growth quarter that made money Atlassian's revenue for the quarter (the period ended June 30) rose 28% year over year to $1.77 billion, up from $1.38 billion. Cloud revenue, the company's most important line, grew 31% to $1.2 billion -- an acceleration. And customers are committing further out: remaining performance obligations, the contracted revenue Atlassian hasn't yet recognized, jumped 44% year over year to $4.8 billion.
The bigger change came below the revenue line. Operating income was $211 million, a 12% operating margin, compared with an operating loss of $28 million in the year-ago quarter. Net income was $139 million, or $0.55 per diluted share, another swing from a loss. On a non-GAAP (adjusted) basis, the operating margin expanded to 36% from 24%, and earnings per share rose 91% year over year to $1.87. Free cash flow climbed 32% to $475 million.
The full-year figures show the same direction. Atlassian's operating margin went from negative 3% in fiscal 2025 to 0.2% in fiscal 2026, and management is targeting about 4.5% in fiscal 2027. That's a steady climb from years of losses toward consistent GAAP profitability.
"We're complementing that top-line strength with real operational discipline. We achieved GAAP profitability, with an operating margin of 12% in Q4, reflecting our commitment to driving durable, long-term growth," chief financial officer James Chuong said in the earnings release.
A closer look at the guidance Alongside the subscription ARR guide, management expects total revenue to grow only about 13% in fiscal 2027, roughly half of fiscal 2026's 26% rate.
That looks worse than the ARR number. But timing explains a lot of it.
Atlassian announced in September 2025 that it will end most of its Data Center product line in March 2029. The announcement pulled customer purchases forward into fiscal 2026, inflating term-license revenue, and Data Center revenue is now expected to decline about 17% in fiscal 2027 as that effect reverses. Cloud revenue, however, is expected to grow about 25.5%, and for the fiscal first quarter the company expects total revenue of $1.705 billion to $1.715 billion. Management said it expects total revenue growth to reaccelerate in fiscal 2028, and that it views subscription ARR as the better measure of the underlying business in the meantime.
The rest of the caution is deliberate. Management pointed to macroeconomic and geopolitical uncertainty, tougher second-half comparisons, and the lapping of the DX acquisition, which added about a percentage point to fiscal 2026's subscription ARR growth.
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Big customers carry the cloud business, too. Atlassian ended the quarter with 57,334 customers spending more than $10,000 a year each on its cloud products, a group that accounts for over 85% of cloud ARR.
So the market's reaction makes more sense up close. Even after Friday's jump, shares trade around $144 as of this writing, about 24% below their 52-week high of $189.69. And at about 25 times fiscal 2026 adjusted earnings per share of $5.85, the valuation is arguably reasonable for a company compounding subscription ARR at a high-teens rate while margins move up. Years of heroic growth don't look baked into the price.
Of course, the guide has to hold. If cloud growth slips below the mid-20% rate management expects, the slowdown could become a demand problem instead of a timing one. Margins alone couldn't offset that, and the stock may give back some of this move.
Ultimately, I think investors read this report correctly. The growth guide came down for reasons the company can explain, and the profitability the market has waited years for finally arrived.
Atlassian po výsledcích za 4. čtvrtletí vyskočil o více než 30 %, když tržby 1,8 miliardy USD i cloudové tržby 1,2 miliardy USD překonaly odhady. Firma navíc zlepšila výhled cloudových tržeb pro fiskální rok 2027.
Atlassian (NASDAQ:TEAM) shares jumped more than 30% on Friday after the software maker posted fourth-quarter revenue and cloud growth that topped analyst estimates and issued a stronger-than-expected cloud revenue outlook for fiscal 2027.
Revenue for the quarter came in at $1.8 billion, up 28% from a year earlier and above the $1.66 billion analysts had expected.
Cloud revenue rose 31% to $1.2 billion, while subscription annual recurring revenue climbed 23% to $6.6 billion. Remaining performance obligations, a measure of contracted future revenue, grew 44% to $4.8 billion.
For fiscal 2027, Atlassian (NASDAQ:TEAM) guided for cloud revenue growth of about 25.5%, ahead of consensus, while forecasting total revenue growth of roughly 13% and a decline of about 17% in data center revenue. The company guided subscription ARR growth of about 18% for the year.
Operating cash flow rose 28% to $479 million, and free cash flow increased 32% to $475 million.
Jefferies raised its price target on the stock to $200, citing accelerating backlog growth and what it called a cheap valuation relative to peers. The brokerage pointed to cross-selling from Atlassian's Service Collection and Teamwork Collection products, along with seat expansion within Jira and Confluence, as drivers of the beat.
Jefferies also noted Atlassian signed its largest-ever deal with a major consumer technology company during the quarter, which analysts said pushed back against concerns that artificial intelligence tools could erode demand for the company's software. The brokerage said usage of Atlassian's AI product, Rovo, rose 50% quarter over quarter.
Atlassian's CEO Mike Cannon-Brookes has said total revenue growth is expected to trough before reaccelerating in fiscal 2028. Cannon-Brookes has also been purchasing shares under a 10b5-1 trading plan, with Jefferies estimating the total at $250 million.
“We think (the) CEO's purchase signals confidence and that stock at 17x FCF is still reasonable,” analysts added.
Atlassian po výsledcích za 4. čtvrtletí posiluje, protože tržby 1,766 miliardy USD a zisk 1,87 USD na akcii překonaly odhady. Firma navíc pro 1. čtvrtletí čeká tržby 1,705 až 1,715 miliardy USD.
Atlassian Corporation (NASDAQ:TEAM) stock is trading higher Thursday after the company reported fourth-quarter financial results after market close.
• Atlassian stock is among today’s top performers. Why is TEAM stock surging?
Here are the key highlights.
Atlassian reported fourth-quarter revenue of $1.766 billion, up 28% year-over-year. The revenue total beat a Street consensus estimate of $1.660 billion according to data from Benzinga Pro.
Cloud revenue was $1.21 billion in the quarter, up 31% year-over-year.
The company hit Subscription ARR of $6.61 billion in the quarter, up 23% year-over-year.
Remaining performance obligations totaled $4.82 billion at the end of the quarter, up 44% year-over-year.
The company reported earnings of $1.87 per share, beating a Street estimate of $1.50 per share.
"Q4 closes out a year that proves our long-term strategy is paying off. Total revenue grew 28% year-over-year to $1.8 billion, Cloud revenue growth accelerated to 31% year-over-year, and our MCP server and Teamwork Graph CLI surpassed one million monthly active users, more than doubling in a single quarter," Atlassian CEO Mike Cannon-Brookes said.
The company ended the quarter with cash and cash equivalents of $1.24 billion.
What’s Next for AtlassianThe company is guiding for first quarter 2027 revenue in range of $1.705 billion to $1.715 billion. The Street estimate is $1.665 billion, according to Benzinga Pro.
Cloud revenue is expected to be up 28.5% year-over-year in the first quarter.
For the full fiscal year, the company expects revenue growth of 13% year-over-year, increasing to $7.420 billion. The Street estimate is $7.354 billion.
Cloud revenue for the full fiscal year is expected to be up 25.5% year-over-year.
Atlassian Stock Price ActionAtlassian stock is up 35.71% to $149.51 in after-hours trading Thursday versus a 52-week trading range of $56.01 to $189.69.
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Atlassian má 6. srpna zveřejnit hospodářské výsledky za 4. fiskální čtvrtletí s výhledem tržeb 1,653–1,661 mld. USD. Růst má podpořit cloud, AI a větší adopce u firem.
Key Takeaways Atlassian to report fiscal Q4 results on Aug. 6 with revenue guidance of $1.653-$1.661B.TEAM's cloud, AI offerings and enterprise adoption are expected to support quarterly growth.TEAM may face pressure from softer IT spending, competition and continued investment costs. Atlassian (TEAM - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 6, 2026.
Atlassian projects fiscal fourth-quarter revenues between $1.653 billion and $1.661 billion. The Zacks Consensus Estimate for revenues is pegged at $1.66 billion, suggesting growth of 19.8% from the year-ago reported figure.
For the fiscal fourth quarter, the Zacks Consensus Estimate for NET’s second-quarter earnings is pegged at $1.48 per share, suggesting growth of 51% from the same quarter last year. The consensus mark has been revised upward in the past 30 days.
Atlassian surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise being 21.47%.
Factors to Consider Before TEAM’s Q4 EarningsThe growing adoption of Atlassian’s cloud-based offerings, driven by the ongoing digital transformation of enterprises and the rising popularity of hybrid work environments, is likely to have favored the company’s to-be-reported fiscal fourth-quarter performance. Continued migration from on-premises deployments to the cloud and healthy demand from enterprise customers are expected to have remained key growth drivers.
Strong demand for Atlassian’s core collaboration offerings, including Jira and Confluence, along with increasing adoption of AI-powered workflow solutions such as Rovo and Teamwork Collections, is likely to have acted as a major catalyst in the to-be-reported quarter. The company’s strategy of embedding generative AI capabilities across its platform is expected to have encouraged greater customer engagement and product expansion.
Growing enterprise adoption is likely to have supported the company’s fiscal fourth-quarter results. Atlassian has been witnessing stronger traction among large organizations as customers expand platform usage, standardize on its cloud offerings and increasingly adopt higher-value solutions across multiple business functions.
The continued shift toward subscription-based offerings is expected to have remained a tailwind in the to-be-reported quarter. The company’s recurring revenue model, coupled with expanding cloud adoption and cross-selling opportunities, is likely to have supported top-line growth while improving the overall quality of revenues. Atlassian’s investments in product innovation, AI-powered automation and strategic acquisitions are likely to have strengthened its competitive position during the fiscal fourth quarter.
However, Atlassian’s fiscal fourth-quarter performance might have been affected by softening enterprise IT spending amid persistent macroeconomic uncertainty. Slower customer additions, an increasingly competitive collaboration software market and continued investments in sales, marketing and research and development are likely to have remained near-term headwinds.
What Our Model SaysOur proven model does not conclusively predict an earnings beat for Atlassian this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
TEAM currently has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to ConsiderHere are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:
SanDisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. Shares of SanDisk have soared 457.3% year to date (YTD).
Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. Shares of Western Digital have surged 217.5% YTD.
MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +2.64% and carries a Zacks Rank #2.
The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days. Shares of MKS have rallied 83.5% YTD.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$56.01▼
$206.00Price Target$138.50
Few software names have been hit as hard by the market's artificial intelligence (AI) anxiety this year as Atlassian Corporation NASDAQ: TEAM. The company behind popular workplace tools Jira and Confluence has seen its shares fall roughly 45% year to date, dragged down by fears that AI coding tools will make much of what it does redundant.
But that story is starting to look increasingly at odds with what the business is actually doing. Like many of its peers, far from being disrupted, Atlassian has actually been quietly repositioning itself at the center of how AI gets used inside software teams, and the stock has been grinding higher since April as a result.
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With the company due to report earnings in early August, and several analysts calling for significant upside from current levels, Atlassian’s setup ahead of the print looks more compelling than the bearish AI narrative suggests.
AI May Be Helping Atlassian More Than Hurting ItThe single biggest fear hanging over Atlassian is that AI agents capable of writing code and resolving tickets will erode demand for its products. It's a reasonable worry on the surface, and it made sense earlier this year, but it’s already starting to look outdated.
Rather than being replaced by AI, the company has been positioning Jira as the coordination layer within which AI agents operate. AI agents can handle plenty of individual tasks. Still, they can't replicate everything a full platform brings to the table, from managing complex workflows to coordinating large teams across a development lifecycle. Someone still has to orchestrate all those agents, and Atlassian wants to be where that happens.
The early evidence suggests it's landing, with adoption of the company's Rovo AI platform gathering pace all year. Crucially, that adoption is showing up alongside durable, contractually-backed growth in Atlassian’s underlying business rather than instead of it, which is the opposite of what the disruption thesis would predict.
Atlassian’s Valuation No Longer Looks Like the ProblemThe valuation reset is another major part of the case. After a punishing multi-month sell-off, Atlassian now trades at valuations far below what they were just last year.
On several measures, including price-to-sales and price-to-free-cash-flow, the stock sits well below its recent historical range, helped largely by the shares falling more than 80% since their 2021 peak. For a company still pricing record revenue numbers and reporting accelerating growth in recent quarters, that's a big disconnect. The market has effectively repriced Atlassian as though its growth days are behind it, while the underlying figures suggest the opposite is true.
The Recovery Is Starting to Look More DurableThe market has quietly started to change its mind. Atlassian bottomed at a multi-year low in April and has since climbed more than 50% off that level.
That recovery hasn't come out of nowhere, with the company beating analyst expectations in its earnings reports along the way, which has helped rebuild the credibility that the AI panic had stripped away. A stock putting in a series of higher lows while consistently exceeding forecasts is usually telling you something, and here it suggests the smart money has been accumulating Atlassian at a discount while the wider market has been writing it off.
That combination, an improving technical picture backed by real fundamental momentum, is exactly the kind of setup that tends to precede a sustained move rather than a short-lived bounce.
Earnings Will Decide Whether the Rebound Has LegsAtlassian Stock Forecast Today12-Month Stock Price Forecast:
$138.50
47.61% Upside
Moderate Buy
Based on 28 Analyst Ratings
Current Price$93.83High Forecast$295.00Average Forecast$138.50Low Forecast$95.00Atlassian Stock Forecast Details
This still puts the pressure on Atlassian going into next month’s report. It has to prove its AI momentum is translating into revenue that can justify the stock’s continued recovery, while reassuring investors that the cost of building out all that AI capability isn't about to spiral out of control.
Atlassian currently carries a Moderate Buy consensus rating, with an average price target near $139, implying significant upside from recent trading levels. While several firms have reiterated bullish ratings recently, others are more cautious. Bank of America, for instance, holds only a Neutral rating on the stock. Tellingly, though, even its recently refreshed price target sits comfortably above where Atlassian’s shares currently trade, which underlines just how much bad news is already baked into the price.
That's ultimately what makes the risk-reward look so appealing here. With the stock trading below even the more cautious targets on the street, the downside appears limited while the upside, should the AI pivot keep delivering, is considerable. For investors willing to look past a narrative that the company itself keeps disproving, Atlassian heading into earnings looks like a rare chance to buy a quality business while it's still deeply out of favor.
Should You Invest $1,000 in Atlassian Right Now?Before you consider Atlassian, you'll want to hear this.
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Atlassian Service Collection překročila 1 mld. USD ARR a meziročně rostla o více než 30 %. AI uživatelům zrychluje řešení problémů o 13 % a zvládne o 20 % více případů.
Key Takeaways Atlassian's Service Collection surpassed $1B ARR, growing more than 30% year over year.AI users resolve issues 13% faster and handle 20% more, supporting deeper platform adoption.Atlassian's cloud transition is expected to accelerate the adoption of AI-enabled cloud offerings. Atlassian Corporation’s (TEAM - Free Report) Service Collection strategy has become a key growth pillar, strengthening its long-term revenue outlook. The business surpassed $1 billion in annual recurring revenues (ARR) while growing more than 30% year over year as of the third quarter of fiscal 2026, highlighting strong demand for its AI-powered enterprise service management platform. More than 65,000 customers, including over half of the Fortune 500, now use Service Collection, while enterprise ARR is growing more than 50% year over year, reflecting increasing adoption among large organizations. Beyond traditional IT service management, the platform is expanding into HR, finance, legal and marketing, broadening Atlassian's addressable market and creating additional recurring revenue opportunities.
Artificial intelligence is further accelerating Service Collection's adoption and customer value. Customers using AI-powered capabilities resolve issues 13% faster and handle 20% more issues, while Service Collection drives 50% of all agentic automation runs across Atlassian's platform. These productivity gains encourage deeper platform adoption and create cross-selling opportunities for complementary offerings such as Rovo, Jira and Confluence.
The long-term outlook is further supported by Atlassian's June 2026 announcement outlining the gradual transition away from Data Center deployments toward its cloud platform. This strategy is expected to accelerate the adoption of AI-enabled cloud offerings, in which Service Collection plays a central role. Combined with expanding enterprise adoption and AI-driven monetization, the Zacks Consensus Estimate projects first-quarter and full-year fiscal 2027 revenue growth of 16.1% and 13.3%, respectively, suggesting the $1 billion milestone could serve as a foundation for continued growth acceleration.
TEAM Faces Stiff Competition in Strategic ImplementationAtlassian is facing stiff competition in strategic execution as rivals continuously strengthen their AI-driven ITSM, enterprise workflow automation and platform capabilities, intensifying the battle for large enterprise customers.
ServiceNow (NOW - Free Report) competes directly with Atlassian through its AI-native enterprise platform spanning ITSM, CRM, HR, security and workflow automation. ServiceNow emphasizes governance, policy-driven AI, workflow orchestration and an open platform while expanding through AI Control Tower and data fabric. ServiceNow also benefits from broad enterprise adoption, deep integrations and platform scale, challenging TEAM's enterprise expansion strategy.
Freshworks (FRSH - Free Report) is emerging as a stronger rival to Atlassian by expanding its AI-driven enterprise service platform. Its platform offers fast deployment, lower implementation complexity and lower ownership costs. Freshworks is expanding Freshservice, AI-powered Freddy Copilot, IT asset management and enterprise workflows, targeting mid-market and enterprise ITSM opportunities. Freshworks leverages ease of adoption and value-driven execution to pressure TEAM in AI service management.
TEAM’s Price Performance, Valuation & EstimatesTEAM shares have declined 24.9% over the past six months, underperforming the broader Zacks Computer & Technology sector’s gain of 13% and the Zacks Internet - Software industry’s modest rise of 0.9%.
TEAM’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Atlassian trades at a forward 12-month price-to-sales ratio of 3.07X, compared with the industry’s 4.03X. TEAM has a Value Score of D.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM's fiscal 2027 earnings is pegged at $6.07 per share, unchanged over the past 30 days, indicating projected year-over-year growth of 10.8%.
Image Source: Zacks Investment Research
TEAM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlassian ve 3. čtvrtletí zvýšil cloudové tržby o 29 % na více než 1,13 mld. USD a zvedl celoroční výhled růstu cloudových tržeb na 26,5 %. RPO vzrostlo o 37 % na 4 mld. USD.
Key Takeaways Atlassian's cloud business is gaining momentum, with Q3 cloud revenues rising 29% YoY to over $1.13B.AI is fueling cloud expansion, as Rovo customers grow ARR at about twice the rate of non-Rovo users.RPO climbed 37% to $4B, giving Atlassian stronger visibility into future recurring revenues. Atlassian Corporation’s (TEAM - Free Report) cloud business is gaining momentum, reinforcing consistent revenue growth and the potential for better results in the future. Cloud revenues surged 29% year over year to more than $1.13 billion in the third quarter of fiscal 2026, outpacing previous growth trends and prompting management to raise its full-year cloud revenue growth outlook to 26.5%. This acceleration reflects growing enterprise adoption as customers increasingly migrate workloads to Atlassian's cloud platform and expand deployments across Jira and other cloud offerings. At the same time, larger enterprise commitments lifted remaining performance obligations (RPO) 37% year over year to $4 billion, providing stronger visibility into future recurring revenues.
AI is becoming another key catalyst for Atlassian's cloud expansion. Customers using Rovo are growing annual recurring revenues at roughly twice the rate of non-Rovo customers, while AI credit usage continues to increase more than 20% month over month. Meanwhile, Teamwork Collection customers consume about twice as many AI credits and AI agents as comparable standalone users, highlighting stronger cross-selling and monetization opportunities. The company's rapidly growing Service Collection, which has surpassed $1 billion in ARR and is expanding at more than 30% annually, further broadens Atlassian's cloud opportunity beyond software development into enterprise-wide service management.
Recent product updates strengthen this momentum. Since June 2026, Atlassian has continued rolling out AI-powered cloud capabilities, including Rovo Dev and additional Teamwork Graph enhancements, which should deepen customer engagement, support broader cloud adoption and strengthen long-term subscription revenue growth.
TEAM Faces Stiff Competition in Cloud RaceAtlassian faces strong competition from GitLab (GTLB - Free Report) and ServiceNow (NOW - Free Report) , both of which are expanding enterprise AI capabilities, cloud platforms and large customer adoption while targeting similar enterprise transformation opportunities.
GitLab is intensifying its competition with Atlassian through its cloud-first DevSecOps platform, growing enterprise subscriptions and AI-powered Duo agent platform. The company leverages cloud-neutral architecture, governance and consumption-based AI monetization to attract enterprises expanding cloud adoption. GitLab also targets broader collaboration with unified software delivery, while it benefits from growing enterprise ARR, platform reliability and AI-led workflow automation.
ServiceNow contests aggressively through AI-native enterprise workflows, robust subscription revenue growth and a unified cloud platform. The company differentiates itself with AI Control Tower, Workflow Data Fabric and hybrid consumption pricing that support enterprise-wide collaboration and governance. ServiceNow also benefits from broad cross-product adoption while it expands AI-driven automation across IT, CRM, HR and security workloads.
TEAM’s Price Performance, Valuation & EstimatesTEAM shares have declined 48.3% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s rise of 14.7% and the Zacks Internet - Software industry’s fall of 11.2%.
TEAM’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Atlassian trades at a forward 12-month price-to-sales ratio of 2.9X, compared with the industry’s 3.78X. TEAM has a Value Score of D.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM's fiscal 2027 earnings stands at $6.07 per share. While the estimate has been unchanged over the past month, it has been revised downward over the last 60 days, reflecting expected year-over-year growth of 10.8%.
Image Source: Zacks Investment Research
TEAM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlassian ve 3. čtvrtletí fiskálního roku 2026 zvýšil RPO o 37 % na 4 miliardy USD a cloudové tržby o 29 % na více než 1,1 miliardy USD. Roste i přijetí AI Rovo a Teamwork Collection už překročila 1 miliardu USD v ročních opakovaných tržbách.
Key Takeaways Atlassian's enterprise adoption is rising as RPO jumped 37% YoY to $4B.TEAM's cloud revenues climbed 29% to over $1.1B, fueled by Jira and enterprise offerings.Rovo users are growing ARR twice as fast, while Service Collection topped $1B in ARR. Atlassian Corporation’s (TEAM - Free Report) enterprise adoption is rapidly increasing, positioning the company to accelerate recurring revenue growth through larger enterprise contracts, expanding cloud adoption and higher cross-selling opportunities. In the third quarter of fiscal 2026, remaining performance obligations (RPO) rose 37% year over year to $4 billion as major enterprises, including Siemens Energy, BBC, Rheinmetall and Wayfair, expanded their commitments and signed larger, longer-term contracts. This growing enterprise traction enhances revenue visibility and strengthens Atlassian's position as a strategic software partner for large organizations.
The company's cloud business continues to benefit from this momentum. Cloud revenues increased 29% year over year to more than $1.1 billion in the reported fiscal quarter, driven primarily by Jira seat expansion and greater adoption of Teamwork Collection and other enterprise offerings.
Artificial intelligence (AI) is emerging as another important growth catalyst. Customers using Rovo are growing annual recurring revenue at roughly twice the rate of non-Rovo users, while AI credit usage is increasing more than 20% month over month. Meanwhile, Service Collection has become a significant revenue driver, surpassing $1 billion in annual recurring revenues with more than 30% growth. Adoption has expanded beyond IT into HR, finance and legal functions, broadening Atlassian's addressable market.
Management also reported its largest-ever competitive displacement from a legacy IT service management provider, reflecting increasing enterprise preference for Atlassian's AI-native platform and integrated system of work. The Zacks Consensus Estimate projects fiscal 2027 revenue growth of 13.3%, suggesting analysts also expect enterprise adoption and platform expansion to continue supporting revenue growth.
Atlassian's Enterprise Growth Faces Pressure From RivalsMonday.com (MNDY - Free Report) and ServiceNow (NOW - Free Report) are emerging as formidable rivals, competing with Atlassian to drive enterprise adoption, deepen customer spending and accelerate AI-led monetization.
Like Atlassian, MNDY is targeting large enterprises through platform consolidation, governance and AI-driven workflows. It is accelerating monetization with consumption-based AI pricing, expanding enterprise contracts and cross-selling multiple products while leveraging its AI work platform to deepen customer spending. These strengths position MNDY to challenge Atlassian's enterprise expansion and recurring revenue growth.
While Atlassian focuses on collaboration and developer workflows, NOW competes with a broader AI-native enterprise platform spanning IT, CRM, HR and security. The company combines workflow orchestration, governance, Context Engine and hybrid pricing to drive enterprise-wide adoption and larger contracts, while strategic acquisitions expand monetization opportunities. These advantages make NOW a formidable challenger to Atlassian's enterprise growth ambitions.
TEAM’s Price Performance, Valuation & EstimatesTEAM shares have plummeted 62.4% in the past year, substantially underperforming both the Zacks Computer & Technology sector's 39.4% gain and the Internet – Software industry's 18.4% decline.
TEAM’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Atlassian trades at a forward 12-month price-to-sales ratio of 3.05X, well below the sector’s average of 6.62X. It has a Value Score of D.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM’s fiscal 2027 earnings is currently pegged at $6.07 per share, which remains unchanged over the past 30 days. The projected figure reflects year-over-year earnings growth of 10.8%.
Image Source: Zacks Investment Research
TEAM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atlassian ve třetím fiskálním čtvrtletí zvýšila tržby o 32 % a cloudové tržby o 29 %, zatímco Microsoft rostl pomaleji. TEAM za tři měsíce přidal 17 % a MSFT klesl o 1,4 %.
Key Takeaways Atlassian and Microsoft are competing in collaboration software as AI productivity adoption rises.TEAM has outpaced MSFT over three months, helped by cloud growth and stronger enterprise demand.Microsoft offers scale and profitability, but Atlassian holds advantages in growth and valuation. Atlassian (TEAM - Free Report) and Microsoft (MSFT - Free Report) are two prominent players in the collaboration software market, helping organizations improve productivity, communication and workflow management. Atlassian is best known for Jira and Confluence, widely used by software developers and project teams. At the same time, Microsoft offers a broad productivity ecosystem that includes Teams, Microsoft 365 and other enterprise collaboration tools.
The two companies share a common focus on enabling workplace collaboration, making them natural rivals or peers for comparison. As organizations continue investing in digital transformation and AI-driven productivity solutions, both companies are expanding the scope of their platforms by incorporating new automation and artificial intelligence capabilities.
Comparing Atlassian and Microsoft offers insight into two distinct approaches to the collaboration software market — Atlassian as a focused workflow and project-management specialist, and Microsoft as a diversified technology leader with an integrated productivity ecosystem. For investors looking to capitalize on the increasing adoption of workplace collaboration and AI-powered productivity solutions, the question becomes: Which stock offers the better investment opportunity? Let's find out.
The Case for TEAMAtlassian remains one of the strongest workplace collaboration and productivity software companies, benefiting from its broad platform spanning Jira, Confluence, Loom, Jira Service Management and AI-powered Rovo. The company’s key strength lies in its “System of Work” strategy, which connects work, knowledge, people and code through its Teamwork Graph, creating a unified collaboration platform that becomes more valuable as customers adopt additional products. Enterprise adoption remains strong, with large organizations such as Siemens Energy, BBC, Rheinmetall and Wayfair expanding their commitments. Service Collection, which includes Jira Service Management, Assets and Rovo, surpassed $1 billion in ARR and is growing more than 30% year over year, reflecting increasing demand for AI-powered service management solutions.
Growth opportunities are being driven by AI monetization, enterprise expansion and cross-selling. Rovo users are growing ARR at roughly twice the rate of non-Rovo customers, while AI credit usage continues to rise more than 20% month over month. Teamwork Collection customers also use about two times more AI credits and agents than comparable standalone customers. Atlassian recently expanded AI capabilities through Agent Orchestration in Jira, Rovo Dev, Rovo Service and deeper Google Cloud Gemini integration, enabling enterprises to deploy AI agents across workflows while maintaining governance and visibility.
Financial performance has been impressive. In third-quarter fiscal 2026, revenues surged 32% year over year and cloud revenues increased 29%. Remaining performance obligations (RPO) climbed 37% to nearly $4 billion, reflecting strong future demand. Non-GAAP operating margin expanding to 34%, while free cash flow reached $561 million.
Although Atlassian has continued to achieve strong revenue growth, it remains unprofitable on a GAAP basis and has recently undertaken workforce reductions and restructuring measures to fund investments in AI and enterprise sales. The company also faces risks related to integrating recent acquisitions, cybersecurity threats and potential weakness in enterprise IT spending amid economic uncertainty.
The Case for MSFTMicrosoft has established itself as a collaboration software powerhouse, combining Teams, Microsoft 365, Dynamics 365 and Copilot into a unified productivity platform. The company benefits from a deeply integrated platform that combines communication, productivity, workflow automation and AI, creating high switching costs and broad enterprise adoption.
A key growth opportunity is the rapid adoption of AI-powered collaboration. Microsoft’s AI business surpassed a $37 billion annual revenue run rate, growing 123% year over year. The company continues to embed Copilot across Teams, Outlook, Word, Excel and Dynamics, helping customers automate workflows, create content and improve productivity. Microsoft also benefits from its strategic relationship with OpenAI, which accelerates innovation and strengthens its AI-driven collaboration offerings. Recent acquisitions, including Activision and prior enterprise software deals, further enhance ecosystem engagement and cross-selling opportunities.
In third-quarter fiscal 2026, Microsoft’s reported revenues rose 18% year over year, while operating income increased 20%. Productivity and Business Processes revenues, which include Microsoft 365, Teams and Dynamics, rose 17% to $35 billion. Microsoft 365 Commercial cloud revenues increased 19% year over year, Microsoft 365 Consumer cloud revenues grew 33% and Dynamics 365 revenues increased 22%.
Recent June 2026 developments highlight continued momentum. Microsoft expanded Microsoft 365 Copilot capabilities with a redesigned interface, enhanced notebooks, new AI agents and broader integration across productivity applications. The company also announced new Microsoft 365 Business with Copilot offerings and showcased additional AI innovations at Build 2026, reinforcing its leadership in enterprise collaboration and workflow automation.
Challenges include intense competition from Atlassian, Google Workspace, Zoom and Salesforce; rising AI infrastructure spending; regulatory scrutiny; and execution risks in monetizing AI investments. Microsoft invested heavily in data centers and cloud infrastructure, with capital expenditures exceeding $30 billion in the quarter.
Share Price Performance of TEAM & MSFTIn the past three months, TEAM shares have gained 17% against MSFT’s 1.4% decline. Atlassian’s outperformance is backed by faster growth in its collaboration and workflow-management platform, supported by robust cloud revenue expansion, rising enterprise commitments and strong AI adoption.
TEAM Outperforms MSFT
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Valuation ComparisonTEAM is currently valued at 2.78X forward 12-month price-to-sales (P/S), compared with 7.17X for Microsoft, suggesting a lower valuation multiple. TEAM’s cheaper valuation indicates strong upside potential if growth remains intact.
TEAM vs. MSFT : Forward 12-Month P/S Valuation
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How Do Estimates Compare for TEAM & MSFT?Atlassian is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have increased 17.09% to $5.48 per share over the past 60 days, while the same for fiscal 2027 has gone up 13.67% to $6.07.
TEAM Estimate Revision Trend
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The Zacks Consensus Estimate for MSFT’s fiscal 2026 and 2027 earnings is pegged at $17.33 and $19.28 per share, respectively. The estimates remain in the low single-digit range of 1.11% and 2.61% over the past 60 days.
MSFT Estimate Revision Trend
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ConclusionBoth companies are well-positioned to benefit from the rising demand for collaboration software and AI-powered productivity tools. Microsoft remains the safer choice due to its unmatched scale, profitability and leadership in enterprise AI. However, Atlassian currently has the advantage in several key areas, including revenue growth, cloud momentum, earnings estimate revisions, recent stock performance and valuation. For investors seeking higher upside potential in the collaboration software space, TEAM looks like the more compelling bet at current levels.
Currently, TEAM sports a Zacks Rank #1 (Strong Buy), while MSFT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atlassian Service Collection překonala 1 mld. USD v ročních opakovaných tržbách a meziročně roste o více než 30 %. Uživatelé AI řeší problémy o 13 % rychleji a zvládnou o 20 % více případů.
Key Takeaways Atlassian's Service Collection topped $1B in ARR and is growing more than 30% YoY.AI users resolve issues 13% faster and handle 20% more issues than non-AI users on the platform.Salesforce and ServiceNow are intensifying competition with AI-powered service platforms. Atlassian Corporation’s (TEAM - Free Report) Service Collection momentum continues to build, reinforcing the view that the business can remain a key driver of growth in the coming years. The offering surpassed $1 billion in annual recurring revenue (ARR) in the third quarter of fiscal 2026 and is growing more than 30% year over year, making it one of Atlassian’s fastest-growing businesses. Demand remains strong across enterprises, with more than 65,000 customers, including over half of the Fortune 500, relying on the platform for IT, HR, legal, finance and customer service workflows.
The business is benefiting from Atlassian’s expanding AI capabilities. Customers using Service Collection’s AI tools resolve issues 13% faster and handle 20% more issues than non-AI users, while the segment accounts for roughly half of all agentic automation runs across Atlassian’s platform. The integration of Rovo AI and the Teamwork Graph is further enhancing productivity and creating a powerful data flywheel that improves customer outcomes and platform stickiness.
Another encouraging trend is the expansion of Service Collection beyond traditional IT use cases. More than 60% of deployments now support non-IT functions, significantly increasing Atlassian’s addressable market. Recent investments in AI agent orchestration and Rovo-powered service automation further strengthen the platform’s long-term opportunity.
With strong ARR growth, rising enterprise adoption and continued market-share gains, Service Collection appears well-positioned to support Atlassian’s revenue growth in the years ahead. The Zacks Consensus Estimate for TEAM’s fiscal 2026 and 2027 revenues is pegged at $6.46 and $7.32 billion, respectively, indicating year-over-year growth of 23.95% and 13.29%.
Competition Mounts for Atlassian’s Service PlatformSalesforce (CRM - Free Report) is intensifying pressure on Atlassian’s service platform through its AI-powered Service Cloud and Agentforce ecosystem. CRM highlighted strong service adoption, growing AI-driven service deployments and advantages in deep customer data integration. While Atlassian benefits from developer-centric workflows, CRM offers broader customer engagement capabilities and larger enterprise relationships, creating a formidable challenge as organizations consolidate service and support operations.
ServiceNow (NOW - Free Report) is emerging as the most formidable competitor to Atlassian's service management momentum. NOW emphasized its ITSM leadership, AI-native platform, governance controls, workflow automation and vast enterprise context engine. Unlike Atlassian’s collaborative approach, NOW promotes an end-to-end operating system for IT and business workflows. As enterprises seek unified service management and AI orchestration, NOW continues to leverage scale, automation and platform depth to gain share.
TEAM’s Price Performance, Valuation & EstimatesYear to date, TEAM shares have declined 49.9%, substantially underperforming both the Zacks Computer & Technology sector's 14.9% gain and the Internet – Software industry's 16.2% fall.
TEAM’s Price Performance
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In terms of valuation, TEAM is trading at a premium, as indicated by its Value Score D. The stock currently trades at a Price-to-Book (P/B) ratio of 23.49x, significantly above the industry average of 4.27x.
TEAM’s Valuation
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TEAM's earnings outlook continues to strengthen. The Zacks Consensus Estimate for fiscal 2026 earnings is currently pegged at $5.48 per share, remaining stable over the past month while rising 16.3% in the last 60 days. The projected figure represents a substantial 48.91% increase from the prior year.
EPS Trend of TEAM Stock
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TEAM stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
