Shares of Atlassian Corporation PLC (NASDAQ:TEAM – Get Free Report) have earned an average recommendation of “Moderate Buy” from the twenty-nine brokerages that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-four have issued a buy rating on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $213.35.
Several research firms have commented on TEAM. Guggenheim upped their price objective on shares of Atlassian from $165.00 to $280.00 and gave the company a “buy” rating in a report on Monday. FBN Securities reiterated an “outperform” rating and issued a $170.00 target price on shares of Atlassian in a research note on Monday, August 10th. Oppenheimer boosted their price target on shares of Atlassian from $200.00 to $275.00 and gave the company an “outperform” rating in a research report on Thursday. BMO Capital Markets upped their price target on shares of Atlassian from $95.00 to $175.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Finally, Royal Bank Of Canada upped their price target on shares of Atlassian from $215.00 to $235.00 and gave the company an “outperform” rating in a research note on Monday, October 12th.
Get Our Latest Stock Analysis on Atlassian
Insider Buying and Selling at Atlassian In other Atlassian news, CRO Brian Duffy sold 1,851 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $319,204.95. Following the sale, the executive owned 218,223 shares in the company, valued at $37,632,556.35. This represents a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Chuong sold 9,054 shares of the firm’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total value of $1,561,362.30. Following the completion of the transaction, the chief financial officer directly owned 279,218 shares of the company’s stock, valued at $48,151,144.10. The trade was a 3.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 22,475 shares of company stock valued at $3,822,643 in the last 90 days. 37.63% of the stock is currently owned by company insiders. Institutional Trading of Atlassian A number of hedge funds and other institutional investors have recently made changes to their positions in TEAM. Activest Wealth Management grew its holdings in Atlassian by 372.4% during the 3rd quarter. Activest Wealth Management now owns 137 shares of the technology company’s stock valued at $25,000 after buying an additional 108 shares in the last quarter. Reyes Financial Architecture Inc. bought a new stake in shares of Atlassian during the third quarter valued at about $49,000. Fortitude Family Office LLC increased its position in shares of Atlassian by 23.0% during the third quarter. Fortitude Family Office LLC now owns 289 shares of the technology company’s stock valued at $52,000 after buying an additional 54 shares during the period. Physician Wealth Advisors Inc. increased its position in shares of Atlassian by 142.4% during the third quarter. Physician Wealth Advisors Inc. now owns 337 shares of the technology company’s stock valued at $60,000 after buying an additional 198 shares during the period. Finally, Manning & Napier Advisors LLC purchased a new stake in shares of Atlassian in the second quarter worth about $27,000. 94.45% of the stock is currently owned by institutional investors.
Atlassian Price Performance Atlassian stock opened at $227.61 on Friday. The business’s 50 day simple moving average is $191.25 and its 200 day simple moving average is $125.51. Atlassian has a 12 month low of $56.01 and a 12 month high of $229.96. The company has a market cap of $57.76 billion, a price-to-earnings ratio of -1,197.95, a PEG ratio of 23.80 and a beta of 1.22. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.93.
Atlassian (NASDAQ:TEAM – Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The technology company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.37. Atlassian had a positive return on equity of 20.99% and a negative net margin of 0.82%. The company had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.66 billion. During the same quarter in the prior year, the company earned $0.98 EPS. The firm’s quarterly revenue was up 27.6% compared to the same quarter last year. Sell-side analysts forecast that Atlassian will post 0.69 EPS for the current year.
Atlassian Company Profile (Get Free Report)
Atlassian Corporation develops collaboration, project-management and workflow software for technology, business and service teams. Its products are designed to help organizations plan projects, manage software development, coordinate work and share knowledge across departments.
Its product portfolio includes Jira for project and issue tracking, Confluence for team collaboration and knowledge management, Jira Service Management for IT and enterprise service workflows, Trello for organizing tasks and projects, Loom for video messaging and screen recording, and Bitbucket for source-code management and collaboration.
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Atlassian Corporation PLC (NASDAQ:TEAM – Get Free Report) hit a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $214.77 and last traded at $208.04, with a volume of 2,608,178 shares trading hands. The stock had previously closed at $207.75.
More Atlassian News Here are the key news stories impacting Atlassian this week:
Positive Sentiment: Mizuho raised its price target for Atlassian from $215 to $235 and assigned an “outperform” rating. The new target suggests additional upside and signals confidence in TEAM’s growth prospects. Positive Sentiment: Wells Fargo increased its price target from $180 to $230, adding to a series of bullish Wall Street revisions and supporting investor sentiment. Wells Fargo Raises Target for Atlassian Stock Positive Sentiment: Atlassian’s software is being used extensively by Williams F1 Team to coordinate operations and pursue efficiency gains. The customer example provides evidence of adoption in performance-sensitive enterprise environments. Williams F1 Uses Atlassian Software Positive Sentiment: A Valiantys report produced with Atlassian found that 98% of surveyed technology leaders have an AI initiative, but only 3% consider their organizations fully ready. The readiness gap could create demand for Atlassian’s integrated workflow, collaboration and AI-management tools. Valiantys and Atlassian AI Readiness Report Positive Sentiment: Atlassian announced enhancements to Service Collection, including scheduling, automated setup and proactive device monitoring. These features may strengthen its IT-service offering and support broader enterprise expansion. Atlassian Expands Service Collection Neutral Sentiment: Coverage discussing whether TEAM can reclaim its 2021 high highlights the stock’s strong rally and substantial long-term upside potential, but also underscores elevated valuation and execution risks. Will Atlassian Stock Return to Its Old High? Negative Sentiment: Chief Accounting Officer Gene Liu sold 337 shares for approximately $70,770. The sale represented only 0.60% of his holdings, limiting its significance, but it is a modest negative signal following the stock’s sharp advance. Atlassian Insider Stock Sale Analyst Ratings Changes TEAM has been the topic of a number of analyst reports. Wells Fargo & Company lifted their price target on Atlassian from $180.00 to $230.00 and gave the stock an “overweight” rating in a report on Wednesday. Citizens Jmp reaffirmed a “market perform” rating on shares of Atlassian in a research report on Wednesday, July 1st. Wall Street Zen upgraded Atlassian from a “hold” rating to a “buy” rating in a report on Sunday, September 13th. Mizuho raised their target price on Atlassian from $215.00 to $235.00 and gave the stock an “outperform” rating in a research report on Thursday. Finally, TD Cowen boosted their target price on Atlassian from $105.00 to $145.00 and gave the stock a “hold” rating in a research note on Friday, August 7th. Twenty-five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $196.74.
Get Our Latest Analysis on Atlassian Atlassian Stock Up 6.1% The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $55.10 billion, a PE ratio of 204.66, a PEG ratio of 16.08 and a beta of 1.22. The firm’s fifty day moving average is $183.62 and its 200-day moving average is $119.50.
Atlassian (NASDAQ:TEAM – Get Free Report) last announced its quarterly earnings data on Friday, August 7th. The technology company reported $1.87 EPS for the quarter, beating the consensus estimate of $1.50 by $0.37. The firm had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.66 billion. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The business’s revenue for the quarter was up 27.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.98 earnings per share. On average, equities research analysts predict that Atlassian Corporation PLC will post 0.94 earnings per share for the current year.
Insider Buying and Selling at Atlassian In other news, CRO Brian Duffy sold 1,851 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total transaction of $319,204.95. Following the transaction, the executive directly owned 218,223 shares in the company, valued at $37,632,556.35. This represents a 0.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO James Chuong sold 9,054 shares of Atlassian stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the completion of the transaction, the chief financial officer owned 279,218 shares in the company, valued at approximately $48,151,144.10. This trade represents a 3.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 22,475 shares of company stock worth $3,822,643 in the last 90 days. 36.66% of the stock is owned by company insiders.
Institutional Investors Weigh In On Atlassian Several hedge funds have recently modified their holdings of TEAM. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its holdings in Atlassian by 69.4% in the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 62,000 shares of the technology company’s stock worth $4,232,000 after buying an additional 25,400 shares in the last quarter. Arizona State Retirement System grew its stake in shares of Atlassian by 6.5% during the second quarter. Arizona State Retirement System now owns 48,629 shares of the technology company’s stock valued at $3,783,000 after acquiring an additional 2,969 shares in the last quarter. Fluent Financial LLC purchased a new stake in shares of Atlassian during the second quarter worth about $2,239,000. IFP Advisors Inc increased its position in shares of Atlassian by 76.0% during the second quarter. IFP Advisors Inc now owns 9,428 shares of the technology company’s stock worth $733,000 after acquiring an additional 4,071 shares during the last quarter. Finally, Nykredit A S purchased a new stake in shares of Atlassian during the second quarter worth about $5,997,000. 94.45% of the stock is currently owned by hedge funds and other institutional investors.
Atlassian Company Profile (Get Free Report)
Atlassian Corporation develops collaboration, productivity and workflow-management software for technology, business and enterprise teams. Its products are designed to help organizations plan projects, manage software development, document and share knowledge, provide IT and customer support, and coordinate work across distributed teams.
Its product portfolio includes Jira for project and issue management, Confluence for team collaboration and knowledge sharing, Jira Service Management for IT service and support operations, and Trello for organizing tasks and projects.
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Is It Too Late to Buy Atlassian Corp (TEAM) After 6.1% Rally? GF Value Says Undervalued
On October 15, 2026, Atlassian Corp TEAM shares rose 6.1%, closing at $217.12. The stock has seen considerable movement recently, trading within a 52-week range of $56.01 to $214.77.
GF Value™ verdict: Current price of $217.12 is 24.6% below GF Value™ of $288.13. GF Score™ of 79/100 indicates the stock is rated above average based on several factors. Notable signal: Insider activity shows net selling of $191.0M over the past 12 months. Is TEAM Overvalued or Undervalued? The current price of Atlassian Corp TEAM at $217.12 is significantly lower than the GF Value™ estimate of $288.13, suggesting that the stock is undervalued by approximately 24.6%. The GF Value™ is GuruFocus' proprietary intrinsic value estimate, which takes into account historical trading multiples, past business growth, and future performance estimates. However, it is important to note that the GF Value™ may not be entirely reliable for companies that are unprofitable or cash-flow-negative, as is the case with TEAM. Therefore, while the marked difference between the current price and GF Value™ indicates a potential opportunity, caution should be exercised.
Given that Atlassian is operating at a loss, traditional earnings-based valuation methods like P/E may not be applicable. Instead, a Price-to-Sales (P/S) analysis should be considered, especially since TEAM trades at a P/S ratio that is quite a bit lower than its historical median of approximately 15.9x. This could signal that the stock is indeed undervalued, although investors should be aware of the inherent risks associated with investing in a company not generating profits.
How Does TEAM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) Not applicable Not available Forward P/E 39.5x Not available Since there is no applicable P/E ratio due to the company's unprofitability, this section can be considered limited. The forward P/E of 39.5x suggests that analysts expect significant growth, but without a historical benchmark to compare this to, it is difficult to draw concrete conclusions. This lack of comprehensive data aligns with the earlier GF Value™ discussion, indicating a need for caution given the company's current financial state.
What Does TEAM's GF Score™ Tell Us? The GF Score™ is a composite score that evaluates a stock based on various factors, including financial strength, profitability, growth, valuation, and momentum. Atlassian's GF Score™ of 79/100 indicates an above-average rating, with particular strengths in growth and valuation metrics.
Metric Rating GF Score™ 79/100 Financial Strength 7/10 Profitability 4/10 Growth 8/10 Valuation 8/10 Momentum 6/10 The strongest areas for TEAM are its growth and valuation ranks, both rated at 8/10, suggesting that while growth prospects are favorable, there are concerns regarding profitability, as evidenced by the low profitability rank of 4/10. This mixed performance indicates that while Atlassian has potential for future growth, current earnings figures and financial performance present challenges.
What Are Gurus and Insiders Doing with TEAM? Currently, 7 gurus hold shares of TEAM stock, with 2 adding to their positions and 9 trimming their holdings. This implies a cautious sentiment among experienced investors, as many are choosing to reduce their exposure. Additionally, insider activity reveals that over the past 12 months, insiders have sold $191.5M worth of shares while only buying $0.5M, resulting in a net selling of $191.0M, which may signal a lack of confidence in the company's near-term prospects.
The net selling by insiders raises questions about the company's future performance and may suggest that those closest to the company are not optimistic about its immediate growth trajectory. This insider behavior, coupled with the guru activity, highlights a critical aspect of the investment landscape surrounding Atlassian.
What This Means for Investors Overall, Atlassian Corp TEAM appears to be undervalued based on the GF Value™ analysis, yet the significant insider selling and P/S valuation metrics indicate that caution is warranted. Investors should be aware of the risks associated with investing in a company that is currently unprofitable, despite its favorable growth prospects. For more detailed insights, you can visit the Atlassian Corp (TEAM) stock page.
Frequently Asked Questions What is TEAM's GF Score™?
TEAM's GF Score™ is 79/100, indicating that the stock is rated above average based on its financial strength, profitability, growth, and valuation metrics.
Is TEAM overvalued or undervalued?
TEAM is currently undervalued, with a GF Value™ of $288.13 compared to its current price of $217.12, suggesting a 24.6% upside potential.
What is TEAM's P/E ratio?
Currently, TEAM does not have a trailing P/E ratio due to its unprofitability. The forward P/E is 39.5x, indicating expected growth, but this is not directly comparable to historical data.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Tim Bohen (@Stockstotrade) is not deferring from his bullishness on the AI trade, which he has repeatedly called the "theme of 2026." He labels Wolfspeed (WOLF) as an unsung stock to benefit from fab expansions, believes Atlassian (TEAM) is a rising giant in the software space, and sees HPE (HPE) continuing to benefit from the AI data center buildout.
Team 26 Europe--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI collaboration and productivity software for teams, today announced AMP: The Agent
Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI collaboration and productivity software for teams, today announced the launch of its [url="]Forwa
TEAM Anywhere & AMSTERDAM--(BUSINESS WIRE)--Team 26 Europe--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI collaboration and productivity software for teams, today announced AMP: The Agentic Multiplayer Protocol at its Team '26 Europe conference. Other announcements include a new Atlassian MCP Server, enhancements to the Teamwork Graph, and capabilities that allow customers to collaborate with agents in richer, more visible ways. The most significant shift in human-AI collaborat.
TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI collaboration and productivity software for teams, today announced the launch of its Forward Deployed Engineering program to scale enterprise AI transformation for its customers. The program embeds senior applied AI engineers directly into customer environments to deploy production-ready AI solutions, including enriching the organizational context that powers the Teamwork Graph, building.
Software investors often choose between high-growth disruptors and stable, cash-generating powerhouses. Intuit (INTU +1.28%) and Atlassian (TEAM +4.66%) represent two ends of the technology spectrum, but which is the better buy today?
Both companies provide essential tools for businesses, but they serve different needs. Intuit focuses on financial and tax management for millions of users. Atlassian makes the collaboration and service platforms that power modern development and business teams.
The case for IntuitIntuit offers a financial technology platform featuring TurboTax, QuickBooks, Credit Karma, and Mailchimp. According to its fiscal 2026 annual report, it serves about 93 million customers worldwide, positioning itself as a central hub for personal and small-business finance. Intuit is folding AI agents into its products to automate bookkeeping and tax work, a key part of how it competes among tech stocks.
In fiscal 2026, which ended July 31, 2026, revenue reached about $21.4 billion, up about 13.9% from the previous year. Net income for the period was about $4.6 billion, for a net margin of roughly 21.3%. Net income rose about 18% from fiscal 2025, and it has grown every year since fiscal 2022. Results included a $293 million restructuring charge tied to a plan announced in May 2026 to cut about 17% of the workforce.
As of its July 31, 2026, balance sheet, the total debt-to-equity ratio is approximately 0.4x, showing the company uses more equity than debt to fund its assets.
The current ratio, which measures the ability to pay short-term debts, is about 1.5x, and free cash flow (operating cash flow minus purchases of property and equipment and capitalized software) was roughly $8.6 billion.
Note that stock-based compensation accounted for roughly 23.3% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
The case for AtlassianAtlassian provides a suite of collaboration and project management tools like Jira, Confluence, and Loom. The company serves over 350,000 customers, including more than 85% of the Fortune 500. It relies heavily on a partner network, with more than half of its fiscal 2026 revenue coming from channel partners' sales efforts.
In fiscal 2026, which ended June 30, 2026, revenue reached nearly $6.6 billion, up about 26% year over year. Despite this growth, the company reported a net loss of roughly $53.8 million, for a net margin of about -0.8%. Atlassian earned about $22 million before taxes, and a $76 million income tax provision turned that into a net loss. Results also absorbed roughly $285 million in restructuring charges.
As of its June 30, 2026, balance sheet, the total debt-to-equity ratio is about 0.9x. The current ratio stands at approximately 0.8x, meaning short-term liabilities exceed short-term assets, though the largest current liability is about $2.5 billion of deferred revenue from customers who paid in advance.
Free cash flow was about $1.3 billion for the year. Note that stock-based compensation represented roughly 118.7% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparisonIntuit faces intense competition from large tech firms and start-ups offering similar financial services. The IRS suspended its free Direct File program, but Intuit still flags the risk that government-run filing tools return and eat into TurboTax's market share.
Tax revenue is heavily concentrated between November and April, so quarterly results swing through the year. Additionally, the company must successfully integrate its AI initiatives while managing cybersecurity and data privacy regulations.
Management expects revenue growth to slow to 9% to 10% in fiscal 2027, down from 14% in fiscal 2026, and guides Mailchimp, now reported as its own segment, to roughly flat revenue. Two shareholder class actions filed in July and August 2026 allege that Intuit made misleading statements in 2025 and 2026, and Intuit says it has strong defenses.
Atlassian competes with large technology vendors as well as AI-native companies and emerging start-ups. The company is navigating a transition to the cloud, including a phased end of its Data Center products, which carries risks of service disruptions or customer churn.
Management targets total revenue growth of about 13% in fiscal 2027 as Data Center revenue declines. It also faces pressure to effectively monetize its new AI offerings in a crowded market.
Finally, the co-founders hold significant voting power through a dual-class share structure, which may limit everyday investors' influence.
Valuation comparisonIntuit trades at significantly lower earnings and sales multiples, making it the more conservatively priced option between the two companies today.
MetricIntuitAtlassianForward P/E12.3x34.6xP/S ratio3.6x7.6xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd lean toward Intuit, with the caveat that buying it today means betting that AI will strengthen its tax and bookkeeping franchise. That outcome is far from settled, and management's own outlook calls for slower growth in fiscal 2027. Even so, the shares trade at less than half their 52-week high, while the business continues to generate billions in profit and free cash flow.
That gap between the stock price and the business is what draws me in. At about 12 times forward earnings, Intuit is priced as if its best years are behind it. TurboTax and QuickBooks remain woven into how millions of households and small businesses manage their money.
That stickiness has limits, since management said at its September Investor Day that price was the top reason customers left in fiscal 2026. Still, moving your books or tax history to a new provider takes effort, which gives Intuit time to fold AI into products customers already pay for.
Atlassian is the faster grower, and its cloud business is expanding quickly. My hesitation is the starting price after a sharp rebound from its 52-week low. Stock-based compensation also exceeded its operating cash flow last fiscal year, so reported cash generation overstates what flows to shareholders.
For investors with a five-year horizon, I'd consider starting a position in Intuit and adding to it over time, as one holding among plenty in a diversified portfolio.
TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI collaboration and productivity software for teams, today announced that it will release financial results for its first quarter of fiscal year 2027 ended September 30, 2026 after market close on Thursday, November 5, 2026. Atlassian will host a conference call to discuss the financial results at 2:00 P.M. Pacific Time. In conjunction with its earnings press release, Atlassian will post a.
Pony AI (NASDAQ:PONY – Get Free Report) and Atlassian (NASDAQ:TEAM – Get Free Report) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Risk and Volatility Pony AI has a beta of 3.87, suggesting that its share price is 287% more volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership 94.5% of Atlassian shares are owned by institutional investors. 36.7% of Atlassian shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations This is a breakdown of recent ratings and recommmendations for Pony AI and Atlassian, as reported by MarketBeat.com. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Pony AI 1 2 7 0 2.60 Atlassian 1 4 25 0 2.80 Pony AI currently has a consensus target price of $19.57, indicating a potential upside of 199.31%. Atlassian has a consensus target price of $191.56, indicating a potential upside of 8.86%. Given Pony AI’s higher possible upside, analysts clearly believe Pony AI is more favorable than Atlassian.
Profitability This table compares Pony AI and Atlassian’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Pony AI -118.47% -14.86% -13.97% Atlassian -0.82% 20.99% 4.36% Valuation and Earnings This table compares Pony AI and Atlassian”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Pony AI $90.00 million 31.57 -$133.97 million ($0.36) -18.17 Atlassian $6.57 billion 6.79 -$53.83 million ($0.19) -926.11 Atlassian has higher revenue and earnings than Pony AI. Atlassian is trading at a lower price-to-earnings ratio than Pony AI, indicating that it is currently the more affordable of the two stocks.
Summary Atlassian beats Pony AI on 10 of the 14 factors compared between the two stocks.
About Pony AI (Get Free Report)
Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.
About Atlassian (Get Free Report)
Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways AI agents could disrupt seat-based SaaS models while creating new revenue streams. Software stocks have rebounded as AI fears give way to a potential renaissance. IGV and XSW have recovered, but AI agents could pressure traditional software demand. The rise of artificial intelligence (AI) agents is changing how businesses use and pay for software. Gartner estimates that up to $234 billion of enterprise application spending could be at risk from agentic AI through 2030, as agents perform tasks across multiple software systems and reduce the need for traditional user interfaces. By 2030, this will make up roughly 20% of enterprise application software-as-a-service (SaaS) spending.
The ongoing shift toward an AI agent economy is a structural inflection point for software stocks—creating both disruption risks and new growth avenues. In the near term, software stocks could face renewed pressure as AI agents become more capable.
Software Stocks Were Hard-Hit in Early 2026In early 2026, a wave of concerns swept across the software industry, triggering a sharp repricing of the sector. The Dow Jones U.S. Software Index, a benchmark for the U.S. software sector, fell about 36% from a record high on Oct. 28, 2025, to April 10, 2026, due to concerns about the impact of widespread AI adoption on software-as-a-service companies.
By Aug. 31, 2026, the index had recovered about 42.5% from its April low, per KraneShares. What drove such a dramatic swing, and has the software industry moved from fears of an AI-driven disruption to a potential renaissance?
Let’s delve a little deeper.
AI Agents Shake Up the Traditional SaaS ModelIn early 2026, software stocks sold off sharply on fears that AI agents would cannibalize traditional seat-based licenses. The core concern: if AI agents do the work, fewer human users need logins — eroding the per-seat subscription revenue that underpins much of the SaaS sector.
The Renaissance Thesis: Agents as Co-UsersA counter-narrative is emerging: agents won’t replace software — they’ll become co-users that expand total workflow value. Applications designed as “agent environments” (usable by both humans and agents) are positioned to win, per the same KraneShares article.
Early data supports this: Salesforce reported that Agentforce and Data 360 ARR reached nearly $3.9 billion, up more than 210% year over year in Q2 FY27, while Agentforce ARR exceeded $1.5 billion, up more than 240%. Deloitte expects software pricing to increasingly move toward hybrid models combining subscriptions, usage and outcomes.
AI Can Create New Revenue StreamSoftware companies that successfully embed AI agents into their platforms could create new revenue streams. Microsoft, for example, said it had more than 30 million paid Microsoft 365 Copilot seats, with Copilot increasingly incorporating agentic capabilities. Meanwhile, its Azure business continued to benefit from strong demand for AI services.
Focus on Selective Stocks?Recent results show that AI is already helping some software businesses. Reuters reported that Snowflake's (SNOW - Free Report) AI offerings made up for about half of the recent acceleration in its growth, helping lift shares of several software peers like ServiceNow (NOW - Free Report) and Atlassian Corp (TEAM - Free Report) .
Snowflake CEO Sridhar Ramaswamy linked the growth acceleration to a broad range of AI products, including CoCo and CoWork, which are driving new AI workloads, agent adoption and higher overall platform consumption.
In this regard, ETFs like Dana Unconstrained Equity ETF (DUNK - Free Report) , Global X Cloud Computing ETF (CLOU - Free Report) and Themes Cloud Computing ETF (CLOD - Free Report) should gain ahead.
Software ETFs in FocusThe iShares Expanded Tech-Software Sector ETF (IGV - Free Report) fell more than 30% from its peak during the first half of the year. Although many software stocks have recovered, the expansion of autonomous AI agents could once again raise questions about demand for traditional software services. The fund IGV has added over 26% over the past six months while it is up only 4% so far this year (as of Sept. 22, 2026).
State Street SPDR S&P Software & Services ETF (XSW - Free Report) has added about 34% over the past six months while the fund is up about 9% in the year-to-date (as of Sept. 22, 2026).
However, companies could face renewed scrutiny in the near term if AI agents increasingly perform tasks that currently require users to interact directly with software platforms.
NewEdge Advisors LLC raised its holdings in shares of Atlassian Corporation PLC (NASDAQ:TEAM – Free Report) by 86.7% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 8,377 shares of the technology company’s stock after acquiring an additional 3,890 shares during the quarter. NewEdge Advisors LLC’s holdings in Atlassian were worth $652,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other hedge funds have also recently modified their holdings of TEAM. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in shares of Atlassian by 69.4% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 62,000 shares of the technology company’s stock worth $4,232,000 after buying an additional 25,400 shares during the period. Fluent Financial LLC bought a new position in shares of Atlassian during the 2nd quarter valued at approximately $2,239,000. National Pension Service grew its stake in shares of Atlassian by 15.5% during the 4th quarter. National Pension Service now owns 280,720 shares of the technology company’s stock valued at $45,516,000 after acquiring an additional 37,607 shares during the period. Arizona State Retirement System increased its holdings in Atlassian by 6.5% in the 2nd quarter. Arizona State Retirement System now owns 48,629 shares of the technology company’s stock worth $3,783,000 after acquiring an additional 2,969 shares in the last quarter. Finally, Ilmarinen Mutual Pension Insurance Co raised its stake in Atlassian by 164.3% during the 4th quarter. Ilmarinen Mutual Pension Insurance Co now owns 92,500 shares of the technology company’s stock worth $14,998,000 after acquiring an additional 57,500 shares during the period. Institutional investors own 94.45% of the company’s stock.
Atlassian Trading Down 1.3% TEAM stock opened at $192.61 on Friday. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.78 and a quick ratio of 0.78. Atlassian Corporation PLC has a 1-year low of $56.01 and a 1-year high of $200.00. The business has a 50 day simple moving average of $154.34 and a two-hundred day simple moving average of $106.59. The company has a market capitalization of $48.88 billion, a price-to-earnings ratio of -1,013.74, a PEG ratio of 14.82 and a beta of 1.15.
Atlassian (NASDAQ:TEAM – Get Free Report) last released its quarterly earnings data on Friday, August 7th. The technology company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.37. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The firm had revenue of $1.77 billion for the quarter, compared to analysts’ expectations of $1.66 billion. During the same quarter last year, the business posted $0.98 earnings per share. The company’s revenue for the quarter was up 27.6% compared to the same quarter last year. Research analysts anticipate that Atlassian Corporation PLC will post 0.94 EPS for the current fiscal year. Analyst Upgrades and Downgrades Several brokerages have weighed in on TEAM. Wells Fargo & Company lifted their price target on shares of Atlassian from $140.00 to $180.00 and gave the company an “overweight” rating in a report on Friday, August 7th. BMO Capital Markets increased their price objective on shares of Atlassian from $95.00 to $175.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Oppenheimer raised their price objective on shares of Atlassian from $110.00 to $200.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. Morgan Stanley upped their target price on shares of Atlassian from $120.00 to $180.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Finally, BTIG Research increased their price target on Atlassian from $180.00 to $230.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Twenty-five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Atlassian presently has a consensus rating of “Moderate Buy” and an average price target of $189.89.
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Insider Activity at Atlassian In other Atlassian news, CAO Gene Liu sold 1,125 shares of Atlassian stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $175.00, for a total value of $196,875.00. Following the sale, the chief accounting officer directly owned 56,807 shares in the company, valued at approximately $9,941,225. The trade was a 1.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO James Chuong sold 9,054 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $172.45, for a total transaction of $1,561,362.30. Following the completion of the sale, the chief financial officer owned 279,218 shares in the company, valued at approximately $48,151,144.10. The trade was a 3.14% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 22,138 shares of company stock valued at $3,751,873. Corporate insiders own 36.66% of the company’s stock.
Atlassian News Roundup Here are the key news stories impacting Atlassian this week:
Positive Sentiment: Public-sector cloud expansion: Atlassian accelerated timelines for Impact Level 5 authorization and announced plans for an air-gapped cloud deployment. The initiatives could improve its ability to win contracts from government agencies and regulated customers. Atlassian Accelerates Public Sector Cloud Investments, Pulls Forward IL5 Timelines Positive Sentiment: AI research strengthens positioning: Researchers from Atlassian’s DX subsidiary and several technology and academic partners published CAFE(S), a framework for evaluating and improving the context supplied to AI coding agents. The work supports Atlassian’s credibility in AI-powered software development and collaboration tools. ACM Queue Publishes CAFE(S) Positive Sentiment: Analyst and sector momentum: An analyst upgrade helped TEAM reach a new 52-week high, while enterprise software stocks broadly rallied even as the wider large-cap technology group weakened. This indicates continued investor interest in software companies exposed to AI and recurring enterprise spending. Atlassian Sets New 52-Week High Following Analyst Upgrade Positive Sentiment: Large addressable market: Recent analysis highlights a roughly $140 billion market growing at an estimated 14% annually, while another article argues that AI adoption and enterprise growth make Atlassian’s valuation more compelling. These themes reinforce the long-term growth narrative. Atlassian Market Opportunity Neutral Sentiment: Short-interest data: A report listed short interest at zero shares and a zero-day short-interest ratio, suggesting no meaningful measurable bearish positioning, although the data may be incomplete or inconsistent. Atlassian Short Interest Information Negative Sentiment: Valuation risk: TEAM has rallied substantially from its 52-week low and trades at a demanding valuation. Investors may require continued strong AI monetization, enterprise growth, and execution, increasing the risk of volatility if results or guidance disappoint. Atlassian Profile (Free Report)
Atlassian Corporation develops collaboration, productivity and workflow software for software development, information technology, business and other teams. Its products are designed to help organizations plan projects, manage work, share knowledge, improve service delivery and coordinate across departments.
Its product portfolio includes Jira for project and issue tracking, Confluence for collaboration and knowledge management, Jira Service Management for IT and business service workflows, Trello for organizing tasks and projects, Bitbucket for source-code management, and Loom for video messaging.
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TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced that researchers from DX (a subsidiary of Atlassian Corporation), Capital One, GitHub, the University of Victoria, and Google published CAFE(S), a diagnostic framework designed to evaluate the context provided to AI agents. Published in ACM Queue, the research establishes an industry standard for diagnosing, designing,.
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TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced accelerated timelines for Impact Level 5 (IL5) authorization and plans for an air-gapped cloud deployment. Accelerated IL5 Timelines Atlassian is pulling forward its IL5 submission in direct response to demand from public sector customers. The company will now submit for IL5 authorization in July 2028, six months ahead.
Key Takeaways Atlassian's cloud revenues rose 31% to $1.2 billion, outpacing 28% total revenue growth in fiscal 2026.Service Collection's agentic automation more than tripled as customers expanded usage beyond IT teams.Atlassian expects subscription ARR growth of 18% in fiscal 2027, down from 23% in fiscal 2026. Atlassian (TEAM - Free Report) is seeing strong momentum in its cloud business, which remains a key driver of overall growth. In the fourth quarter of fiscal 2026, cloud revenues rose 31% year over year to $1.2 billion, faster than the company’s 28% total revenue growth to $1.8 billion. Management said cloud performance was helped by strong cross-sell and seat expansion, while data center-to-cloud migrations remained in line with expectations.
The company is also seeing higher adoption of its collections, particularly Teamwork Collection and Service Collection. Service Collection revenue growth accelerated in the quarter, supported by growing use of AI and agentic automation. Atlassian said agentic automation in Service Collection increased more than threefold as customers expanded usage beyond IT teams into HR, legal, finance and marketing. Teamwork Collection also saw strong demand as customers increased Rovo credits and expanded seats.
Another positive factor is the broader expansion of customers across the Atlassian platform. Management said customers are increasingly consolidating their collaboration tools onto Atlassian, with Teamwork customers having four to five times more paid seats per instance than standalone Jira or Confluence customers. Strong seat growth among both technical users and knowledge workers is helping support cloud revenues and gives Atlassian more opportunities to expand within existing accounts.
Still, sustaining this pace could become more challenging. Atlassian expects subscription ARR growth of 18% in fiscal 2027 compared with 23% in fiscal 2026, as management takes a more cautious view of macroeconomic, fiscal policy and geopolitical uncertainty. Even so, continued cloud adoption, cross-sell and seat expansion could help Atlassian maintain solid revenue growth as it expands its enterprise customer base.
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 second quarter of fiscal 2027, Agentforce’s ARR exceeded $1.5 billion, up 240% 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 18.4% in the year-to-date period compared with the Zacks Internet - Software industry’s return of 2.2%.
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 6.35X compared with the industry’s 4.17X. 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, unchanged 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.
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Sequoia Financial Advisors LLC lifted its position in Atlassian Corporation PLC (NASDAQ:TEAM – Free Report) by 61.7% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 13,532 shares of the technology company’s stock after buying an additional 5,162 shares during the period. Sequoia Financial Advisors LLC’s holdings in Atlassian were worth $1,053,000 as of its most recent SEC filing.
Several other hedge funds have also added to or reduced their stakes in TEAM. MV Capital Management Inc. acquired a new position in Atlassian in the fourth quarter valued at about $25,000. Basepoint Wealth LLC acquired a new stake in shares of Atlassian during the fourth quarter worth about $32,000. Reflection Asset Management bought a new position in shares of Atlassian during the 4th quarter valued at about $44,000. Manning & Napier Advisors LLC acquired a new position in shares of Atlassian in the 2nd quarter valued at approximately $27,000. Finally, MassMutual Private Wealth & Trust FSB grew its position in shares of Atlassian by 139.2% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 378 shares of the technology company’s stock valued at $29,000 after purchasing an additional 220 shares during the period. Institutional investors and hedge funds own 94.45% of the company’s stock.
Insider Buying and Selling In related news, CFO James Chuong sold 9,054 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $172.45, for a total value of $1,561,362.30. Following the completion of the transaction, the chief financial officer owned 279,218 shares of the company’s stock, valued at approximately $48,151,144.10. This trade represents a 3.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Gene Liu sold 1,125 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $175.00, for a total transaction of $196,875.00. Following the completion of the transaction, the chief accounting officer directly owned 56,807 shares of the company’s stock, valued at approximately $9,941,225. This trade represents a 1.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 22,138 shares of company stock worth $3,751,873. 36.66% of the stock is owned by insiders.
Atlassian Trading Up 0.2% NASDAQ TEAM opened at $190.28 on Thursday. The stock has a market capitalization of $48.29 billion, a price-to-earnings ratio of -1,001.47, a PEG ratio of 14.92 and a beta of 1.15. The stock’s 50 day moving average price is $142.19 and its two-hundred day moving average price is $101.75. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.78 and a current ratio of 0.78. Atlassian Corporation PLC has a 52 week low of $56.01 and a 52 week high of $198.60. Atlassian (NASDAQ:TEAM – Get Free Report) last issued its quarterly earnings results on Friday, August 7th. The technology company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.37. Atlassian had a negative net margin of 0.82% and a positive return on equity of 20.99%. The company had revenue of $1.77 billion during the quarter, compared to analysts’ expectations of $1.66 billion. During the same period last year, the business earned $0.98 EPS. The business’s quarterly revenue was up 27.6% on a year-over-year basis. As a group, analysts anticipate that Atlassian Corporation PLC will post 0.94 earnings per share for the current fiscal year.
Analysts Set New Price Targets Several analysts have commented on the stock. Guggenheim raised their target price on shares of Atlassian from $115.00 to $165.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Royal Bank Of Canada assumed coverage on shares of Atlassian in a report on Tuesday, August 25th. They issued an “outperform” rating and a $215.00 price target for the company. BMO Capital Markets increased their price objective on shares of Atlassian from $95.00 to $175.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Bank of America raised their price objective on shares of Atlassian from $175.00 to $210.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Finally, Oppenheimer boosted their price objective on shares of Atlassian from $110.00 to $200.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. Twenty-five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $186.41.
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Atlassian Company Profile (Free Report)
Atlassian Corporation develops collaboration, productivity and workflow software for software development, information technology, business and other teams. Its products are designed to help organizations plan projects, manage work, share knowledge, improve service delivery and coordinate across departments.
Its product portfolio includes Jira for project and issue tracking, Confluence for collaboration and knowledge management, Jira Service Management for IT and business service workflows, Trello for organizing tasks and projects, Bitbucket for source-code management, and Loom for video messaging.
See Also Five stocks we like better than Atlassian 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector Jackson’s Record Quarter Powers the Bull Case Holiday Shopping Is Almost Here—And Target May Be Ready to Win Big AI Panic Hit Tech Stocks—But NVIDIA’s Growth Engine Is Intact Want to see what other hedge funds are holding TEAM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Atlassian Corporation PLC (NASDAQ:TEAM – Free Report).
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Key Takeaways Atlassian's cloud revenues rose 31%, driven by Rovo, larger deals and seat expansion.NOW's AI ACV topped $1 billion, but rising AI consumption and hyperscaler reliance pressured gross margins.Atlassian trades at 5.96X forward sales, below ServiceNow's 7.48X, offering a more attractive valuation. Atlassian (TEAM - Free Report) and ServiceNow (NOW - 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 increased 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. 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. 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.
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%.
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.
The above-mentioned factors show that rising AI adoption, cross-selling and seat expansion should support Atlassian's growth prospects in the upcoming quarters. The Zacks Consensus Estimate for TEAM's fiscal 2027 and 2028 revenues indicates year-over-year growth of 13.01% and 14.78%, respectively.
Image Source: Zacks Investment Research
The Case for ServiceNow StockServiceNow is seeing strong demand for its Agentic AI products, which could become an important growth driver for the company. In the second quarter of 2026, ServiceNow’s AI annual contract value (ACV) crossed $1 billion and beat management’s expectations. AI net new ACV growth also accelerated more than 40% sequentially. The company said it is already tracking ahead of its goal to have AI account for 30% of ACV by 2030.
Customer adoption is also increasing quickly. The number of customers with Agentic AI in production has grown 9x over the past nine months. ServiceNow is also seeing more customers adopt AI for the first time. Deal volume among first-time Agentic AI buyers increased more than 45% year over year in the second quarter. This shows that AI growth is not coming only from existing customers expanding their use. New customers are also starting to adopt ServiceNow’s AI products.
ServiceNow is also using AI-native products to make adoption easier. The company said these new products are helping bring Agentic AI to a broader customer base. Customers upgrading to the new AI-native SKUs are generating pricing increases in the 20-30% range, in line with the company’s target. This gives ServiceNow an opportunity to increase both AI adoption and revenue per customer as more workloads move to its platform.
The growth opportunity could become larger as customers expand their AI use cases. ServiceNow said customers are moving beyond basic generative AI toward areas such as incident management, resolution planning, triage and case management. As customers use AI across more departments and workflows, the company sees additional cross-sell opportunities. This could help increase AI consumption over time and strengthen ServiceNow’s position as a broader workflow and orchestration platform. The Zacks Consensus Estimate for NOW's 2026 and 2027 revenues indicates year-over-year growth of 22.02% and 18.52%, respectively.
Image Source: Zacks Investment Research
However, ServiceNow expects accelerating AI consumption and greater reliance on hyperscalers to put some pressure on gross margins in the near term. In the second quarter of 2026, ServiceNow’s non-GAAP total gross margin was 78%, down from 81% a year earlier. Although management expects scale, lower infrastructure costs and more efficient AI models to ease this pressure over time, a faster-than-expected shift toward AI workloads could limit margin expansion in the near term.
TEAM vs. NOW: Price Performance and ValuationYear to date, shares of TEAM have surged 18.8%, while NOW shares have plunged 7.1%.
TEAM Vs. NOW: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, TEAM is trading at a forward sales multiple of 5.96X, lower than NOW’s forward sales multiple of 7.48X. TEAM’s reasonable valuation makes it more attractive for investors looking for value and stability.
NOW vs. TEAM: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: TEAM Has an Edge Over NOWBoth Atlassian and ServiceNow are well-positioned to benefit from the AI wave. However, ServiceNow faces near-term pressure on gross margins as rising AI consumption and greater reliance on hyperscalers increase infrastructure costs, which could weigh on the company’s prospects in the near term.
In contrast, Atlassian shows steadier execution, where the company is witnessing strong momentum in its cloud business, driven by robust adoption of its AI products. TEAM’s reasonable valuation offers some downside protection as well, giving TEAM a clear edge over NOW.
Currently, TEAM carries a Zacks Rank #3 (Hold), giving the stock a clear edge compared to NOW, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Flash in the Pan or Sustained Rally Contender? 3 Momentum Stocks to WatchAtlassian NASDAQ: TEAM CFO James Chuong told investors at Citi’s TMT conference that artificial intelligence is becoming a tailwind for the company, citing increased adoption of its Rovo AI capabilities, expanding cloud usage and demand for its bundled product collections.
Chuong, who said he had been in the CFO role for about five and a half months, said his early experience has largely reinforced the company’s existing strategy. Atlassian’s priorities include AI, its “system of work” strategy, enterprise expansion and durable profitable growth, he said.
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MarketBeat Week in Review – 08/10 - 08/14“AI is going to be a tailwind for Atlassian,” Chuong said, pointing to the company’s Teamwork Graph, which connects enterprise work, context and workflows across its platform. He said the graph can power AI use cases across organizations rather than only individual productivity tools.
Recent Results and Cloud Momentum Chuong highlighted Atlassian’s fiscal fourth-quarter results, including $1.8 billion in revenue, up 28% year over year. Annual recurring revenue grew 23%, while remaining performance obligations rose 44%, he said.
Atlassian Just Pulled Off the Software Comeback Wall Street WantedStandalone seat growth in Jira, Confluence and Jira Service Management exceeded the company’s expectations during the quarter, according to Chuong. He also said revenue growth reaccelerated in Atlassian’s Service Collection business.
Cloud revenue growth accelerated from 26% to 31% in the fourth quarter, driven primarily by customer expansion and cross-selling, Chuong said. He said the company continues to see growth in both individual applications and its Teamwork Collection, which was introduced within the past year.
The Data Center-to-cloud migration also remains a multiyear growth opportunity, he said. Atlassian has found that customers who migrate from Data Center to cloud spend, on average, 1.75 times more after three years than they did previously. Cloud customers can access additional applications, collections, Rovo AI and the Teamwork Graph, capabilities that are not available in Data Center, Chuong said.
Atlassian expects Data Center customers to require substantial support during their cloud transitions because many have extensive customizations. Chuong said the company’s solution partners, global systems integrators and marketplace vendors will remain important to managing those migrations and helping customers adopt cloud capabilities.
Collections and Enterprise Opportunity Chuong said Atlassian has five collections across the company, including Teamwork Collection, Service Collection, Software Collection and Product Collection. The collections are designed around work performed by different parts of an organization, rather than solely around individual software products.
Jira is a $2.5 billion ARR business with about 150,000 customers. Service Collection recently surpassed $1 billion in ARR and is growing more than 30% year over year. Confluence is a $1.5 billion business with 100,000 customers. He said the company sees significant cross-sell potential between Jira’s 150,000 customers and Service Collection’s 65,000 customers. Atlassian’s cohort of customers generating more than $3 million in ARR grew 50% year over year to about 164 customers, while its more-than-$5-million ARR cohort grew 70% to roughly 69 customers.
Chuong also sought to address concerns that AI could reduce the need for software-development seats. Lower costs of coding and building software are resulting in more innovation, more software being built and additional seats, he said. He added that Atlassian’s user base extends well beyond developers: 65% of Jira users are knowledge workers who are not software engineers, while the comparable figures are close to 70% for Confluence and above 70% for Jira Service Management and Service Collection.
AI Adoption and Monetization Teamwork Collection is currently the primary way customers purchase and deploy AI from Atlassian, Chuong said. The package includes Confluence, Loom and Jira and provides customers with 10 times more Rovo credits. He said the company has intentionally offered generous credits to reduce barriers to AI adoption and usage.
According to Chuong, 80% of Fortune 500 companies use Rovo. Rovo-assisted actions increased 50% quarter over quarter, a measure he said reflects users asking the system to complete tasks rather than simply conduct searches or chats.
Atlassian is also seeing increasing agent usage. Agentic automations in Service Collection have tripled over the past six months, Chuong said. Monthly active users of MCP servers and command-line interface tools have surpassed 1 million, while MCP calls have increased 400% quarter over quarter. MCP-driven creation of Jira items and Confluence pages has grown fourfold, he said.
The company plans to begin enforcing consumption on those metered capabilities in December. Simple queries into the Teamwork Graph will not be charged, Chuong said, while longer-horizon or more complex use cases that draw on the graph will consume credits.
Customers using Rovo have ARR growth that is twice as high as comparable customers not using the AI product, according to Chuong. Teamwork Collection customers also develop and deploy twice as many agents and use twice as many Rovo credits, he said.
Profitability and Fiscal 2027 Outlook Chuong said Atlassian has invested heavily in research and development to build an enterprise-grade cloud offering and its AI architecture. The company is seeking to offset AI-related costs through platform optimization and by working with seven model providers and more than 70 models across its platform.
He acknowledged that growing use of Rovo credits could pressure gross margins, but said Atlassian is focused on GAAP operating profitability. The company has guided for a positive 4.5% GAAP operating margin in fiscal 2027.
Atlassian is continuing to add enterprise sales capacity, with its salesforce growing from about 115 representatives two to three years ago toward 400, Chuong said. The company also plans continued investment in AI. Internally, 99% of Atlassian employees use Rovo, and the company has deployed 15,000 agents that collectively complete about 40 tasks per day, he said.
For fiscal 2027, Chuong said execution in sales capacity, Teamwork Collection adoption and Service Collection adoption could provide upside to subscription ARR performance. He said the company is balancing those opportunities against macroeconomic and fiscal-policy uncertainty.
About Atlassian (NASDAQ:TEAM)Atlassian Corporation develops collaboration, productivity and workflow software for software development, information technology, business and other teams. Its products are designed to help organizations plan projects, manage work, share knowledge, improve service delivery and coordinate across departments.
Its product portfolio includes Jira for project and issue tracking, Confluence for collaboration and knowledge management, Jira Service Management for IT and business service workflows, Trello for organizing tasks and projects, Bitbucket for source-code management, and Loom for video messaging.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Atlassian's Teamwork Graph now spans 200 billion objects and connections to support AI workflows.Teamwork Graph can deliver up to 44% more accurate answers while using 48% fewer tokens.Teamwork Collection adoption boosts Rovo credits, ARPU and paid seats, supporting broader cross-sell. Atlassian Corporation (TEAM - Free Report) is seeing growing customer interest in its Teamwork Graph as businesses look to use AI across more workflows. The Teamwork Graph connects data from Atlassian applications and other sources to provide context for AI tools. The company says the graph now spans more than 200 billion objects and connections, giving Atlassian a large base of enterprise work data to support its AI strategy.
Atlassian believes the Teamwork Graph can improve the quality and cost of AI responses. Agents using the graph can deliver up to 44% more accurate answers while using 48% fewer tokens. Here, lower token usage can help reduce AI costs, while better answers can improve the usefulness of AI tools. This value is already showing up in customer discussions, with AI and the Teamwork Graph now among the top two reasons customers cite for upgrading to the cloud and adopting the Teamwork Collection.
The Teamwork Graph is also supporting Atlassian's AI monetization efforts. The Teamwork Collection is becoming an important way for customers to adopt AI features, including Rovo. Atlassian said customers are upgrading to get more Rovo credits, which is helping drive higher average revenue per user. Teamwork Collection customers also have four to five times more paid seats per instance than stand-alone Jira or Confluence customers. This suggests that broader adoption of the graph and AI could lead to more seats, higher ARPU and greater cross-sell opportunities.
Atlassian estimates about $14 billion of opportunity within its existing customer base without changing products or pricing. If Atlassian can keep improving Teamwork Graph and use it to drive wider AI adoption, customer upgrades and seat growth, it could support the company's next phase of expansion. 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 second quarter of fiscal 2027, Agentforce’s ARR exceeded $1.5 billion, up 240% 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 11% in the year-to-date period against the Zacks Internet - Software industry’s return of 0.5%.
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 5.96X compared with the industry’s 4.08X. 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, unchanged 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.
TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced new capabilities across Jira and DX to help engineering organizations adopt and scale governed agentic workflows across the AI software development lifecycle. This launch addresses a critical enterprise scaling gap. According to Atlassian's 2026 AI SDLC study, while 94% of engineering leaders report using AI, only 6% h.
Atlassian Corporation (TEAM) Citi's 2026 Global TMT Conference September 9, 2026 4:35 PM EDT
Company Participants
James Chuong - CFO & Principal Financial Officer
Conference Call Participants
Fatima Boolani - Citigroup Inc., Research Division
Presentation
Fatima Boolani
Citigroup Inc., Research Division
We are putting a close to day 2 of Citi's TMT Conference today. I'm Fatima Boolani. I jointly head up our software equity research team here. And I'm very happy to end the day with James Chuong, CFO of Atlassian. Thank you so much for being here and joining me.
James Chuong
CFO & Principal Financial Officer
Yes. Thanks for having me, Fatima.
Question-and-Answer Session
Fatima Boolani
Citigroup Inc., Research Division
Excellent. Well, before we get into kind of the meat and potatoes of our discussion, 5.5 months in the seat, almost 6. Biggest surprises, James, in the last 5 months as CFO of Atlassian.
James Chuong
CFO & Principal Financial Officer
Yes, 5.5 months, so I must have all the answers at this point. But in terms of the biggest surprises, honestly, I would say that a lot of it is more about reinforcing the thesis as I came into Atlassian. When we really thought about the opportunity that AI presents, I think there was a lot of questions, a lot of noise in the market about whether that was going to be a headwind or a tailwind for Atlassian. And I think we've proven over the last couple of quarters and really even before that as well, right, with our strategy that AI is going to be a tailwind for Atlassian as customers look to really drive more and more value out of AI, understanding that Atlassian delivers an incredible graph, our Teamwork Graph, that's what's really going to be powering AI across the enterprise. And I'm excited to get into that today. But again, I would say not a lot of major surprises, but
Gene Liu, Chief Accounting Officer at Atlassian(TEAM +0.75%), sold 939 shares of Class A common stock on Aug. 28, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$178,410Shares sold939Post-transaction shares (directly held)55,868Post-transaction shares (indirectly held)120Post-transaction value$10.7 millionTransaction value based on SEC Form 4 weighted average sale price ($190); post-transaction value based on Aug. 28, 2026, market close ($190.42).
Key questionsHow does this transaction align with the insider's established trading schedule?
The disposition was executed automatically under a Rule 10b5-1 trading plan established on Dec. 5, 2025, which allows insiders to diversify their holdings through pre-planned transactions.What is the context of the insider's remaining equity stake?
Following the sale, Liu retains a total beneficial interest of 55,988 shares, representing an ownership stake of 0.02% of the company's shares outstanding.What has been the recent performance environment for the security?
The sale occurred after the stock recorded an 8% one-year total return as of the Aug. 28, 2026, transaction date, with the equity valued at approximately $10.7 million based on the market close that same day.Company OverviewMetricValueShare Price (as of market close 2026-08-28)$190.42Market Capitalization$44.9 billionRevenue (TTM)$6.6 billionNet Income (TTM)-$53.8 millionCompany SnapshotAtlassian develops and distributes a comprehensive portfolio of software solutions, including Jira Software, Jira Work Management, Confluence, and Trello, which serve as the primary revenue drivers across technical and business teams globally.The company operates a subscription-based software-as-a-service (SaaS) business model, generating recurring revenue through cloud and server licensing arrangements while maintaining a global distribution network across multiple subsidiaries.Atlassian serves enterprise and mid-market customers across the technology, finance, healthcare, and professional services sectors, with particular strength among development teams, project managers, and knowledge workers who require collaboration and project management capabilities.Atlassian is a leading enterprise software provider with a $44.9 billion market capitalization and $6.6 billion in TTM revenue, positioning it as a significant player in the application software segment. The company's integrated product ecosystem creates substantial switching costs and cross-selling opportunities that drive customer retention and expansion revenue. With 13,301 employees and a presence across global markets, Atlassian maintains competitive advantages through deep product integration, strong developer community engagement, and a proven ability to scale its SaaS platform across diverse customer segments.
What this transaction means for investorsOn Aug. 28, Liu sold 939 shares for approximately $178,000. However, while the TEAM stock price is down 2.5% over the past 12 months, this sale isn't an indication of there being anything amiss with Atlassian. The sale was already established under a trading plan created in December 2025, so this wasn't a spur-of-the-moment decision. In addition, while Liu sold 939 shares, the insider still holds nearly 56,000 shares directly and 120 shares indirectly. That demonstrates continued alignment with the company's current and future success.
For what's ahead for Atlassian, analysts generally view the stock favorable. Of the 35 analysts who cover the stock, 83% rate it as a buy, according to CNN. The analysts, however, even with a favorable view, appear to suggest that the upside for the stock price over the next 12 months may be limited. The median one-year price target from the group is $180, representing a gain of just 1.2% from the current price of $177.74. The most bullish price target in the group, $480, represents a 170% gain. And the most bearish price target from the group, $144, represents a loss of nearly 19%.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.
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.
Premium Feature
Moneyball Superscore
73/100
Today's Change
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Current Price
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189.58
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.
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Renewed partnership expands opportunities to advance engineering collaboration, develop future talent and share technical expertise across two world-class engineering organizations
KOMATSU CITY, Japan--(BUSINESS WIRE)--Komatsu and Atlassian Williams F1 Team have extended their award-winning, global partnership beyond 2026, continuing a collaboration between two organizations that thrive in some of the world's most challenging engineering environments. Building on a relationship that spans decades, the renewed agreement creates a platform for advanced engineering initiatives, shared learning and knowledge exchange, and the continued development of future engineering talent. It underscores Komatsu's commitment to driving innovation by bringing its engineering expertise to further enhance this technical partnership.
Komatsu and Atlassian Williams F1 Team are extending their award-winning, global partnership and Komatsu will become Williams’ Official Hydraulic Innovation Partner, a new designation that reflects the company's decades of engineering leadership.
Share Under the partnership, Komatsu becomes Williams’ Official Hydraulic Innovation Partner, a new designation that reflects the company's decades of engineering leadership in critical technologies. For more than a century, Komatsu has been developing advanced technologies, including hydraulic systems, that power some of the world's most demanding equipment, from autonomous mining trucks to precision construction and forestry machinery operating in extreme environments. That expertise, built through continuous engineering, testing and innovation, aligns closely with the technical challenges of motorsport, where performance, precision and reliability are fundamental to success on track.
Komatsu’s technical expertise in advanced manufacturing will be a feature of the extended partnership, with Komatsu engineers helping to develop key components of Williams’ future F1 cars. This deeper technical collaboration underscores the shared mindset between Komatsu and Williams, with both organizations committed to advancing engineering excellence through innovation, precision and continuous improvement.
The engineering relationship began in the 1990s, when Komatsu manufactured gear components for Williams' 1996 and 1997 Formula 1 World Championship-winning cars. After renewing their partnership in 2024, Komatsu and Atlassian Williams F1 Team are now taking the next step by further expanding opportunities for technical collaboration and people development. Rather than marking a new direction, the partnership's evolution reflects a relationship that has always been rooted in engineering, with today's expanded collaboration carrying that technical foundation forward.
Komatsu and Williams share a commitment to developing the next generation of STEM talent through the Komatsu Williams Engineering Academy (KWEA), which each year welcomes 10 engineering students from around the world for an immersive program of mentorship, hands-on experience, and access to a library of technical learning modules. Under the extension, the academy will continue to recruit exceptional students from Formula Student and Formula SAE initiatives worldwide. Complementing the engineering academy, the organizations will also introduce the Komatsu Williams Leadership Academy, a leadership development program focused on building the next generation of Komatsu leaders from around the world.
Together, these bespoke programs demonstrate how the partnership extends beyond sponsorship by creating opportunities for students, employees and emerging leaders to learn from the complementary strengths of two world-class engineering organizations. Further details of the technical collaboration, academy activity and leadership program will be announced as the initiatives are developed.
Beginning in 2027, Komatsu will expand its involvement across Formula 2, Formula 3 and F1 Academy, supporting initiatives that inspire future engineers and strengthen connections between industry and motorsport.
Komatsu branding will continue to feature across Atlassian Williams F1 Team’s global platform, reflecting the partnership's shared commitment to engineering excellence and innovation.
The extension was formally marked by an announcement and signing ceremony in Komatsu City, Japan on September 2, 2026. The event was attended by senior leadership from both Komatsu and Williams, including Takuya Imayoshi, President and CEO, Komatsu Ltd, Yasuji Nishiura, Senior Executive Officer, Komatsu Ltd., Matthew Savage, Chairman, Atlassian Williams F1 Team, and Peter Kenyon, Board Adviser, Atlassian Williams F1 Team.
Quotes:
Takuya Imayoshi, President and CEO, Komatsu Ltd: "Komatsu has always believed that the greatest engineering advances come from tackling complex challenges alongside trusted partners. Our relationship with Atlassian Williams F1 Team has been built on a shared commitment to perseverance, collaboration and authenticity; values that have connected our organizations for decades. As we deepen this partnership, we are creating new opportunities to exchange knowledge, develop future engineering talent and accelerate the ideas that will help shape the next generation of technology. This is a natural extension of Komatsu's commitment to engineering excellence and our ambition to create value for customers and society through innovation."
James Vowles, Team Principal, Atlassian Williams F1 Team: “After three successful seasons together and a relationship which dates back to our last Championship-winning cars, it is fantastic to be expanding our partnership with Komatsu as Atlassian Williams F1 Team approaches its 50th anniversary. The relationship with Komatsu is truly special and embodies our approach to working with partners who share our values, believe in our journey and can help deliver success on and off track. We look forward to taking the partnership to the next level in 2027 and beyond.”
About Atlassian Williams F1 Team
Atlassian Williams F1 Team is one of the world’s most iconic Formula 1 teams. Founded in 1977 by Sir Frank Williams and Sir Patrick Head, the team has won nine Constructors’ World Championships, seven Drivers’ World Championships and 114 Grand Prix races – making it one of the three most-successful teams in history. Based in Grove, Oxfordshire and competing at the pinnacle of motorsport, Williams continues to build for the future of Formula 1 through world-class engineering, racing excellence and a commitment to bringing fans closer to the sport than ever before.
About Komatsu
Komatsu is an industry-leading manufacturer and supplier of equipment, technologies and services for the construction, forklift, mining, industrial and forestry markets. For over a century, Komatsu equipment and services have been used by companies worldwide to develop modern infrastructure, extract fundamental minerals, maintain forests, and create technology and consumer products. The company's global service and distributor networks support customer operations, tapping into the power of data and technology to enhance safety and productivity while optimizing performance. To learn more, visit www.komatsu.com.
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 is positioned as a potential AI winner among SaaS companies, with rapid AI adoption and a differentiated Teamwork Graph platform. TEAM's Q4 FY2026 results significantly beat expectations, with $1.77B revenue and $1.87 adjusted EPS, driving a 35% stock rally. Despite strong recovery, TEAM trades at 5.0x FY2028E revenue and 18.9x non-GAAP operating income, offering 25% upside to a $212 price target.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Needham analyst Serge Belanger initiated coverage on Evommune Inc (NYSE:EVMN) with a Buy rating and announced a price target of $28. Evommune closed at $13.79 on Tuesday. See how other analysts view this stock. Daiwa Capital analyst Bintuo Ni initiated coverage on ACM Research Inc (NASDAQ:ACMR) with a Buy rating and announced a price target of $136. ACM Research shares closed at $79.77 on Tuesday. See how other analysts view this stock. Wolfe Research analyst Rudy Li initiated coverage on Harmony Biosciences Holdings Inc (NASDAQ:HRMY) with an Outperform rating and announced a price target of $60. Harmony Biosciences closed at $38.95 on Tuesday. See how other analysts view this stock. RBC Capital analyst Matthew Hedberg initiated coverage on Atlassian Corp (NASDAQ:TEAM) with an Outperform rating and announced a price target of $215. Atlassian shares closed at $166.49 on Tuesday. See how other analysts view this stock. RBC Capital analyst Matthew Hedberg initiated coverage on JFrog Ltd (NASDAQ:FROG) with an Outperform rating and announced a price target of $118. JFrog closed at $89.48 on Tuesday. See how other analysts view this stock. Considering buying ACMR stock? Here’s what analysts think:
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Atlassian (NASDAQ:TEAM – Get Free Report) and Scientific Learning (OTCMKTS:SCIL – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Earnings and Valuation This table compares Atlassian and Scientific Learning”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Atlassian $6.57 billion 7.17 -$53.83 million ($0.19) -976.95 Scientific Learning N/A N/A N/A N/A N/A Scientific Learning has lower revenue, but higher earnings than Atlassian. Insider & Institutional Ownership 94.5% of Atlassian shares are held by institutional investors. 36.7% of Atlassian shares are held by company insiders. Comparatively, 16.1% of Scientific Learning shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability This table compares Atlassian and Scientific Learning’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Atlassian -0.82% 20.99% 4.36% Scientific Learning N/A N/A N/A Analyst Recommendations This is a summary of current recommendations and price targets for Atlassian and Scientific Learning, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Atlassian 1 4 25 0 2.80 Scientific Learning 0 0 0 0 0.00 Atlassian currently has a consensus price target of $178.63, indicating a potential downside of 3.77%. Given Atlassian’s stronger consensus rating and higher probable upside, equities analysts clearly believe Atlassian is more favorable than Scientific Learning.
Summary Atlassian beats Scientific Learning on 8 of the 9 factors compared between the two stocks.
About Atlassian (Get Free Report)
Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.
(Get Free Report)
Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.
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Atlassian Corp. (NASDAQ:TEAM) shares are extending Thursday’s rally on Friday, touching a new all-time high today. Here’s what you need to know.
Atlassian stock is approaching key resistance levels. Why are TEAM shares at highs? Salesforce’s Strong Quarter Continues to Lift Enterprise SoftwareSalesforce Inc.’s (NYSE:CRM) second-quarter report, released after the close Wednesday, set off yesterday’s rally across enterprise software names, and that lift has carried into today. Revenue came in at $11.35 billion, topping the $11.32 billion analysts expected and marking an 11% increase from a year earlier, while adjusted earnings of $5.90 per share far exceeded the $3.27 estimate.
Looking ahead, Salesforce guided third-quarter revenue to $11.42 billion to $11.50 billion, above the $11.41 billion estimate, with adjusted earnings expected between $3.42 and $3.44 per share, ahead of the $3.37 consensus.
The company also raised its full-year revenue outlook to $46.1 billion to $46.4 billion from a prior $45.9 billion to $46.2 billion range, and lifted its full-year adjusted earnings guidance to $16.67 to $16.71 per share from an earlier $14.06 to $14.12 range.
Beyond the Salesforce connection, Atlassian shares are setting fresh records today. The stock surpassed $194 today, passing its 52-week high of $185.73 to mark a new all-time high for the company.
Atlassian’s Rally Looks Stretched On the ChartsThat fresh high comes with a technical picture that reflects just how far the stock has run. Shares are trading roughly 24% above their 20-day moving average of $155.14 and about 78% above their 200-day average of $108.34, an extension typical of a strong trend that has gotten ahead of itself. A golden cross that formed in August, when the 50-day average moved above the 200-day, reinforces the bullish backdrop and tends to draw in trend-following buyers.
Momentum is the bigger story right now. The relative strength index sits at 79.87, deep into overbought territory, signaling the rally has outpaced its recent typical pace. That doesn’t necessarily mean a reversal is coming, but it does raise the odds of a pause, pullback or choppier trading if buying momentum fades.
Traders are watching $157.50 as support, a level close to the 20-day average that has often served as an early buying zone during strong uptrends like this one.
TEAM Shares Are ClimbingTEAM Price Action: Atlassian shares were up 4.40% at $193.79 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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Chief Accounting Officer Gene Liu reported a sale of 1,125 shares of Class A Common Stock in Atlassian Corporation (TEAM -1.77%) at $175 per share on August 19, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold1,125Transaction value$196,875Post-transaction shares (directly held)56,807Post-transaction shares (indirectly held)120Post-transaction value$9.92 millionTransaction value based on SEC Form 4 weighted average sale price ($175.00); post-transaction value based on August 19, 2026 market close ($174.23).
Key questionsWhat prompted this disposition?
The sale was conducted pursuant to a Rule 10b5-1 trading plan adopted by Gene Liu on December 5, 2025, which allows insiders to execute pre-arranged trades to satisfy personal financial objectives without violating insider trading laws.What remains of the insider's total equity position?
Following the sale, the executive retains 56,927 total shares including both direct and indirect holdings, representing a market valuation of $9.92 million based on the August 19, 2026 market close.How has the stock performed relative to the transaction price?
Atlassian shares were priced at $174.23 at the market close on the day of the transaction, and the security has generated a 5% return over the 12 months ending August 19, 2026.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$174.23Market Capitalization$45.8 billionRevenue (TTM)$6.6 billionNet Income (TTM)-$53.8 millionCompany SnapshotAtlassian develops and distributes a comprehensive suite of software solutions including Jira Software, Jira Work Management, Confluence, and Trello, which serve as core platforms for project management, team collaboration, and knowledge management across technical and business organizations.The company operates a subscription-based software-as-a-service (SaaS) business model, generating recurring revenue through cloud-hosted solutions and on-premise licensing arrangements that scale with customer adoption and organizational growth.Atlassian serves a diverse customer base spanning software development teams, enterprise organizations, and business teams globally, with particular strength in the developer and technical operations segments where its products have achieved significant market penetration.Atlassian Corporation is a global leader in team collaboration and project management software. The company's platform-based approach enables customers to integrate multiple solutions across their organizations, creating a sticky ecosystem that drives customer lifetime value and retention.
Atlassian's competitive advantages include its established brand recognition within developer communities, extensive product integration capabilities, and a large installed base that provides opportunities for cross-selling and upsell expansion.
What this transaction means for investorsChief Accounting Officer Gene Liu's sale of Atlassian stock on Aug. 19 came not long after the company's Aug. 6 earnings report for its fiscal fourth quarter, ended June 30, sent shares skyward by 30%. Even so, the disposition was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 trading plan.
Post-transaction, Liu retains a sizable equity stake of 56,807 directly held shares while his spouse has another 120 shares. This ensures his continued alignment with shareholder interests.
Atlassian stock rose after fiscal Q4 earnings thanks to strong results. The company reported a 28% year-over-year increase in sales to $1.8 billion. This growth helped it achieve Q4 net income of $139.1 million, an impressive reversal from the net loss of $23.9 million in the prior year.
Atlassian's share price took a beating earlier in 2026 due to the widespread sell-off of software stocks called the SaaSpocalypse, where Wall Street investors feared artificial intelligence would take business away from SaaS enterprises. The company's Q4 results showed Atlassian remains resilient in the face of AI.
Robert Izquierdo has positions in Atlassian. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TEAM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
James Chuong, the Chief Financial Officer of Atlassian Corporation (TEAM -1.77%), disposed of 9,054 shares of Class A Common Stock on Aug. 19, 2026, as disclosed in a recent SEC Form 4 filing.
Company snapshotAtlassian Corporation develops and distributes a suite of software solutions, including Jira Software, Confluence, and Trello, to facilitate team collaboration and project management globally.As of the Aug. 19, 2026 market close, the company had a market capitalization of $45.8 billion and reported trailing twelve-month revenue of $6.6 billion.Transaction summaryMetricValueTransaction value$1.6 millionShares sold9,054Post-transaction shares (directly held)279,218Post-transaction value$48.65 millionTransaction value based on SEC Form 4 weighted average sale price ($172.45); post-transaction value based on Aug. 19, 2026, market close ($174.23).
Key questionsHow should the CFO's disposition be interpreted in the context of ownership alignment?
The transaction was non-discretionary and primarily served an administrative function to satisfy tax liabilities. Because the liquidation was triggered automatically by the vesting of equity awards rather than a market-timed decision, it does not suggest a change in the CFO's outlook on company value.What remains of the insider's equity incentive following this sale?
Chuong remains a significant shareholder, holding 279,218 shares directly. This residual position, valued at $48.65 million as of the Aug. 19, 2026 market close, ensures continued alignment with long-term shareholder objectives through a substantial direct equity stake.What is the financial context of the company at the time of this filing?
Atlassian Corporation continues to scale its software ecosystem, reaching $6.6 billion in trailing twelve-month revenue. While the company reported a net loss of $53.8 million over the same period, its market capitalization remains robust at $44.2 billion as it serves a global client base through its collaboration platforms.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$174.23Market Capitalization$44.2 billionRevenue (TTM)$6.6 billionNet Income (TTM)-$53.8 millionCompany SnapshotAtlassian develops and distributes a comprehensive software portfolio, including Jira Software, Jira Work Management, Confluence, and Trello, generating revenue through subscription-based licensing and cloud-hosted solutions for enterprise and mid-market customers.The company operates a SaaS-driven business model, monetizing its products through recurring subscription fees, cloud infrastructure services, and premium support offerings that scale with customer adoption and team expansion.Atlassian serves technical teams, business operations groups, and enterprise organizations globally, with primary customers spanning software development, IT operations, project management, and knowledge management functions across industries.Atlassian Corporation is a global leader in team collaboration and project management software with a market capitalization of $44.2 billion and TTM revenue of $6.6 billion. The company maintains a diversified product ecosystem that addresses critical workflow needs across development, operations, and business teams, positioning it as an essential infrastructure provider for digital-first enterprises. With 13,301 employees and a presence across multiple geographies, Atlassian leverages its established platform network effects and high customer switching costs to sustain competitive advantages in the enterprise software market.
What this transaction means for investorsAs previously stated, CFO James Chuong's sale of Atlassian stock is likely not a move that should alarm investors.
Admittedly, the drop in the SaaS stock earlier this year occurred as many investors feared AI would render many software platforms obsolete. Atlassian subsequently recovered as the company showed AI was a growth driver rather than a threat. Amid those movements, Chuong's sale may have looked like a "sell the rally" decision.
However, the Form 4 explicitly stated that the sale occurred for tax withholding purposes. Such moves bear no relation to a stock's performance. Moreover, the fact that he sold only 3% of his shares implies a high degree of optimism in the company's future.
Today's Change
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Furthermore, investors should note that the stock never recovered from the 2022 bear market. However, Atlassian grew its revenue by 26% in fiscal 2026 (ended June 30) and even reported a modest operating profit for the year. Considering that its price-to-sales (P/S) ratio is 7, Chuong may have good reason to hold out for a long-awaited recovery in the stock.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.
Key Takeaways Atlassian's Q4 revenues grew 28%, while cloud revenues rose 31% and subscription ARR increased 23%.Rovo adoption is expanding, with more than 80% of Fortune 500 companies now using the AI offering.Atlassian's agentic automation increased threefold as customers deployed agents beyond software development. Atlassian Corporation (TEAM - Free Report) is seeing higher AI adoption help drive customer expansion. In the fourth quarter of fiscal 2026, revenues increased 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. This strong momentum should help TEAM strengthen its position against other key players in the cloud software industry such as ServiceNow (NOW - Free Report) and Salesforce (CRM - Free Report) .
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%.
Atlassian's AI opportunity also extends beyond software development. Service Collection revenue growth accelerated in the fourth quarter, while agentic automation increased more than threefold as customers deployed agents in HR, legal, finance and marketing. The above-mentioned factors show that continued AI adoption, cross-selling and seat expansion could help support Atlassian's growth prospects in the upcoming quarters. 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 CompetitionSalesforce 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 returned 0.5% in the year-to-date period against the Zacks Internet - Software industry’s decline of 3.6%.
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 5.46X compared with the industry’s 3.96X. 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 7.9% 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.
Brian Duffy, Chief Revenue Officer of Atlassian Corporation (TEAM +5.60%), disposed of 7,617 shares of Class A Common Stock on August 14, 2026 according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$1.2 millionShares sold7,617Post-transaction shares (directly held)220,074Post-transaction value$35.70 millionTransaction value based on SEC Form 4 weighted average sale price ($163.00); post-transaction value based on August 14, 2026 market close ($162.22).
Key questionsWas this a discretionary market transaction?
No, the disposal was non-discretionary and was executed specifically to satisfy tax obligations resulting from the vesting of equity awards, and does not reflect the insider's view on the stock.What is the scale of the remaining direct equity position?
Brian Duffy retains 220,074 shares of Class A Common Stock, which represents a direct ownership stake of 0.0838% in the company.Does the executive maintain additional equity exposure?
In addition to the common stock, the executive also holds derivative securities in the form of unvested equity awards that will settle in future periods.How has the stock performed relative to the transaction date?
The shares were priced at $163 at the time of the transaction, which occurred as Atlassian tracked a one-year return of -1% as of the August 14, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-14)$162.22Market Capitalization$42.6 billionRevenue (TTM)$6.6 billionNet Income (TTM)-$53.8 millionCompany SnapshotAtlassian develops and distributes a comprehensive software suite including Jira Software, Jira Work Management, Confluence, and Trello, which serve as core project management, collaboration, and workflow platforms that generate the majority of the company's recurring subscription revenue.The company operates a cloud-based SaaS business model, supplemented by on-premise and server deployment options, generating revenue through subscription licensing, professional services, and support offerings to enterprise and mid-market customers globally.Atlassian's primary customer base consists of technical teams, software development organizations, and business enterprises across multiple verticals that require integrated solutions for project planning, team collaboration, and knowledge management.Atlassian Corporation is a global leader in team collaboration and project management software, serving over 13,800 employees and commanding a $42.6 billion market capitalization. The company's differentiated product ecosystem addresses the full spectrum of team workflows, from software development to business operations, positioning it as a critical infrastructure provider for enterprise digital transformation.
With trailing 12-month revenue of $6.6 billion, Atlassian maintains a strong market position despite near-term profitability pressures, reflecting its continued investment in product innovation and market expansion.
What this transaction means for investorsThe Aug. 14 sale of Atlassian stock by CRO Brian Duffy is not a cause for investor concern. It was executed to fulfill tax withholding obligations in connection with the vesting of restricted stock units (RSUs). An RSU is a form of employee compensation where a company promises to give an employee shares of stock at a future date. When that vesting date arrives, as was the case here, a "sell to cover" transaction occurs to pay for the related taxes.
Duffy retains a sizable equity stake, post-transaction. His 220,074 directly held shares demonstrate he maintains continued alignment with shareholder interests.
Atlassian stock soared following the release of fiscal fourth quarter earnings on Aug. 6 thanks to strong business performance. Wall Street investors were worried artificial intelligence would hurt the company's sales, leading to shares falling to a 52-week low of $56.01 in April. Atlassian's fiscal Q4 proved that is not the case.
The software giant generated $1.8 billion in fiscal Q4 revenue, up an outstanding 28% year over year. Moreover, it posted net income of $139.1 million, a significant turnaround from a net loss of $23.9 million in the prior year.
Robert Izquierdo has positions in Atlassian. The Motley Fool has positions in and recommends Atlassian. The Motley Fool has a disclosure policy.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Should You Invest $1,000 in Atlassian Right Now?Before you consider Atlassian, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Atlassian wasn't on the list.
While Atlassian currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.
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.
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 Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced Code Context, a new capabil
TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced Code Context, a new capability in the Atlassian Teamwork Graph that gives developers, Rovo, and coding agents secure access to source code across large-scale, multi-repository codebases. As organizations adopt coding agents, their effectiveness depends on more than model intelligence. It depends on the context they hav.
Software stocks are staging a comeback in the second half of the year, according to Jefferies analysts, who pointed to strong results from ServiceNow Inc (NYSE:NOW, XETRA:4S0), SAP, Roper Technologies, Atlassian (NASDAQ:TEAM) and Cloudflare as evidence the sector is shaking off fears of AI-driven disruption.
Solid earnings beats, healthy margins and early signs of AI monetization through consumption growth and product up-tiering are easing investor concerns about software companies' long-term value, the analysts said.
Since an April 10 low, the iShares Expanded Tech-Software ETF has outperformed the VanEck Semiconductor ETF by four percentage points.
Jefferies analysts said the rally is highly selective. Atlassian (NASDAQ:TEAM) shares have surged more than 160% since the April low, while HubSpot has gained less than 10% over the same period. Demand continues to outpace supply, with power, labor and permitting now the primary bottlenecks rather than chip availability. National data center vacancy sits below 1.4%, and under 1% in Northern Virginia, with the buildout expected to run more than three years, the analysts said, adding they see no sign of a bubble forming.
Transformers and gas turbines now carry lead times of four to five years, with suppliers largely sold out through 2030 and 2031, the expert said, while utilities increasingly require data center operators to bring their own power. Skilled labor is also thinning and project cancellations are rising, adding further strain to permitting timelines.
The analysts said elevated capital expenditure across Microsoft, Amazon, Google and Meta should persist as a result.
Jefferies analysts also addressed recent leadership changes at Google parent Alphabet Inc (NASDAQ:GOOG), after Jeff Dean said on August 5 he would leave the company alongside several senior researchers to launch an AI startup called Discovery Loop. Demis Hassabis moved from his role as CEO of DeepMind to Chief Scientist at Google, with Koray Kavukcuoglu taking over leadership of DeepMind.
The analysts said the changes do not alter Google's AI trajectory, arguing the company's competitive advantage rests on its data assets, vertically integrated AI platform and global distribution rather than any individual researcher. Jefferies said its thesis remains that AI represents an infrastructure and monetization race, and that Google's scale, accelerating Gemini adoption, Cloud profitability and continued AI investment position it to remain a long-term winner.
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52-Week Range$56.01▼
$184.00Price Target$176.27
Sometimes you can call it a comeback. Shares of Atlassian Corp PLC NASDAQ: TEAM exploded 35% higher on Friday, Aug. 7, following an impressive earnings report that left investors thrilled and analysts scrambling to raise price targets.
The stock has completed an impressive turnaround in 2026, shrinking its year-to-date (YTD) loss after a brutal first-half sell-off. But unlike many of its peers posting impressive results, Altassian guided a revenue decline next year, dropping from 26% year-over-year (YOY) in fiscal 2026 to 13% YOY growth in fiscal 2027. How does a stock trading at 220 times forward earnings jump 35% on a declining revenue guide? Because it’s actually part of the plan.
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Atlassian’s Shifting Revenue Mix Explains Market ReactionAtlassian reported its Q4 fiscal year 2026 results after the market closed Aug. 6, and the headline numbers were impressive. Earnings-per-share (EPS) of $1.87 beat consensus estimates by 24.7%, and the revenue figure of $1.77 billion represented YOY growth of more than 27%. Annual recurring revenue (ARR) from subscriptions grew 23% YOY to $6.61 billion, and Remaining Performance Obligations (RPO) grew 44% YOY to $4.82 billion.
But the guidance, at least at first glance, appears tepid. Management expects total revenue to grow just 13% in fiscal 2027, half the rate of growth in fiscal 2026. The company also expects slightly slower Cloud revenue and Subscription ARR growth, while guiding for a 17% contraction in Data Center revenue. However, this is part of the company’s plan to migrate Data Center clients over to the Cloud. Atlassian announced plans to sunset the Data Center segment back in 2025, with End of Life (EOL) scheduled for March 2029. Revenue leaving the Data Center segment isn’t disappearing; it's simply shifting to another part of the business. Plus, Atlassian can sell Cloud customers premium AI features like Rovo, which offer the company more recurring revenue and a higher annual retention rate. Investors anchoring to the 13% headline are pricing in a business that is in the middle of a deliberate dismantling and replacement with a more lucrative one.
Current Price$154.78High Forecast$295.00Average Forecast$176.27Low Forecast$95.00Atlassian Stock Forecast Details
The breakdown between ARR and RPO is another important factor in the report. Subscription ARR is the current subscription base annualized, meaning it's one period extrapolated over the full 12 months. RPO is the backlog; money that’s been agreed to in contracts and that Atlassian is committed to delivering, but doesn’t yet show up as revenue. ARR looks backward, while RPO looks forward. And RPO growing at nearly twice the rate of ARR means contract duration and size are expanding, as management’s comments bear out. Inked contracts valued at $3 million and $5 million have grown by 50% and 70% YOY, setting company records and signaling that future revenue is becoming more visible and durable.
Analysts were quick to note the backlog expansion and the increasing durability of revenue. The stock received 17 new price targets following the Q4 2026 release, all of which were boosts or new coverage initiations, signaling increased demand for the stock. The average of the 14 new price targets is $176.27, representing upside of more than 14% from current levels. But while several of the price targets now sit at $200, analysts at TD Cowen and UBS Group maintained a Hold/Neutral rating on the stock, so not everyone covering the shares has conviction over the business mix shift.
Chart Hinted at Upward Momentum Building Before Earnings CallEven the U.S. Men’s soccer team would cringe at TEAM’s first-half performance. The drawdown was precipitous, and by April the share price was stuck far below the 50-day and 200-day moving averages. But investors who have been eying the TEAM chart over the last few weeks may have spotted the breakout before the earnings release.
The stock bottomed in early April, but the Moving Average Convergence Divergence (MACD) indicator flipped a bullish cross in early March, hinting that selling pressure was beginning to fade. TEAM shares retook the 50-day moving average shortly after the MACD signal and used it as support during three months of consolidation. Another bullish MACD cross reappeared in the weeks leading up to the Q4 results, and now the post-earnings pop is holding its gap.
The software apocalypse was always an overstated concern, and companies like Atlassian have proven that AI can be an asset, not a threat. However, this was a very quick repricing following a single earnings report. The market won’t be as generous next time now that valuation is no longer distressed and the stock is starting to look overbought. TEAM has recovered from the losses the SaaS panic triggered, and further upside depends on monetizing migrating Cloud customers and continued growth in large contract volume.
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Should You Invest $1,000 in Atlassian Right Now?Before you consider Atlassian, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Atlassian wasn't on the list.
While Atlassian currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
