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1. Company Snapshot

1.a. Company Description

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide.Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams.The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation.


In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool.Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform.Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products.


The company was founded in 2002 and is headquartered in Sydney, Australia.

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1.b. Last Insights on TEAM

Atlassian Corporation's recent performance was negatively impacted by increased sales and marketing spend outpacing revenue growth, low Fortune 500 penetration, and rising stock-based compensation leading to potential dilution. Despite strong Q2 results, with 21% YoY revenue growth and improved profit margins, management raised full-year revenue growth guidance to 19% with an implied Q4 acceleration to 20% YoY growth. The company's high-margin subscription-based model, supported by increased cloud migrations and rising product upsells, is a positive driver. However, concerns about the company's ability to sustain its growth momentum and maintain its competitive edge in the market remain.

1.c. Company Highlights

2. Atlassian's Q1 FY2026 Earnings: A Strong Start with Cloud Revenue Growth

Atlassian reported a robust first quarter, with total revenue growing 21% year-over-year to $1.4 billion, driven by a 26% increase in cloud revenue to $998 million. The company's earnings per share (EPS) came in at $1.04, beating estimates of $0.839. The strong revenue growth was largely attributed to the company's strategic priorities, including enterprise, AI, and the system of work. The cloud revenue growth was particularly notable, with significant growth in cloud revenue recognized ratably, which had an impact on the timing of revenue recognition.

Publication Date: Nov -01

📋 Highlights
  • Cloud Revenue Growth:: Cloud revenue rose 26% YoY to $998M, surpassing total revenue growth of 21% ($1.4B).<br>
  • AI Adoption Surge:: 3.5M monthly active users of AI capabilities, a 50% increase from Q4 2025.<br>
  • Cloud Migration Impact:: Stronger-than-expected cloud migrations caused a 0.5-point decline in organic revenue growth outlook for FY2026.<br>
  • Enterprise Expansion:: 80% of Fortune 500 companies use Atlassian, with large enterprise deals driving 120% NER growth.<br>
  • AI Workflow Growth:: AI interactions increased 150% in 6 months, with cloud revenue growth accelerating to 26%.<br>

Cloud Migration and AI-Driven Growth

The company's cloud migrations have been stronger-than-expected, with a significant increase in cloud revenue outlook. Atlassian's AI capabilities have also seen tremendous growth, with over 3.5 million monthly active users, a 50% increase since last quarter. The company's AI platform is delivering fantastic results, with a 26% cloud growth rate and accelerating RPO to over 40%. As Michael Cannon-Brookes noted, "We're seeing tremendous growth in our AI capabilities, particularly with customers using AI coding tools like GitHub Copilot and Cursor."

Valuation and Growth Prospects

Atlassian's current valuation metrics indicate a high-growth expectation. The company's P/S Ratio stands at 8.14, while the EV/EBITDA ratio is -599.67, indicating a potentially overvalued stock. Analysts estimate next year's revenue growth at 19.7%, which is slightly lower than the company's long-term 20% CAGR target. With a ROE of -13.91% and ROIC of -9.93%, the company's profitability metrics are negative, likely due to significant investments in growth initiatives.

Strategic Priorities and Future Outlook

Atlassian remains committed to its strategic priorities, including delivering a world-class AI platform, growing its enterprise capabilities, and expanding the system of work across customers' teams and enterprises. The company's go-to-market strategy is evolving, with a focus on improving customer engagement and partner relationships. With a massive $14 billion addressable market and 80% of the Fortune 500 already using their products, Atlassian is well-positioned for continued growth.

3. NewsRoom

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Scott Farquhar Sells 7,665 Shares of Atlassian (NASDAQ:TEAM) Stock

Dec -03

Source: defenseworld.net

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Atlassian Announces Availability of Cloud Apps on AWS Marketplace

Dec -02

Source: businesswire.com

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Figma vs. Atlassian: Which Collaboration Stock Is the Smarter Pick?

Nov -24

Source: zacks.com

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GitLab vs. Atlassian: Which DevOps Stock Should Investors Buy Now?

Nov -21

Source: zacks.com

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MAYFAIR STRENGTHENS MANAGEMENT TEAM

Nov -20

Source: prnewswire.com

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Artisan Global Discovery Fund: Q3 Delivers Strong Results Amid Trimming And Exits

Nov -20

Source: seekingalpha.com

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17 Capital Partners LLC Purchases New Position in Atlassian Corporation PLC $TEAM

Nov -20

Source: defenseworld.net

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Atlassian: The Teamwork Engine That's Growing Fast And Profitable

Nov -17

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (25.00%)

6. Segments

Software & Programming

Expected Growth: 25.0%

Atlassian's Software & Programming segment is expected to grow at a CAGR of 25% due to increasing demand for remote collaboration tools, driven by the shift towards digital transformation and remote work. Strong adoption of Jira, Confluence, and Trello will fuel growth, supported by expanding customer bases and continuous product innovation.

7. Detailed Products

Jira

Jira is a project management and issue tracking tool that helps teams plan, track, and manage their work.

Confluence

Confluence is a collaboration and content management platform that helps teams create, share, and store content.

Bitbucket

Bitbucket is a version control and source code management platform that helps teams manage their code.

Trello

Trello is a visual project management and collaboration tool that helps teams organize and prioritize their work.

Opsgenie

Opsgenie is an incident management and alerting tool that helps teams manage their alerts and incidents.

Statuspage

Statuspage is a status and incident communication platform that helps teams communicate with their customers during incidents.

8. Atlassian Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Atlassian's products, such as Jira and Trello, have become an integral part of many businesses' workflows, making it difficult for substitutes to fully replace them. However, there are alternative project management and collaboration tools available, such as Asana, Microsoft Teams, and Slack, which can be considered substitutes. The threat of substitutes is medium because while there are alternatives, Atlassian's products have a strong brand presence and a wide range of features that make them a popular choice.

Bargaining Power Of Customers

Atlassian has a large customer base across various industries, and its products are widely used. While individual customers may have some bargaining power, the company's scale and market presence give it a strong position in negotiations. Additionally, Atlassian's products often become deeply ingrained in customers' workflows, making it difficult for them to switch to alternative solutions.

Bargaining Power Of Suppliers

Atlassian's suppliers are likely to be software developers, cloud infrastructure providers, and other technology companies. While these suppliers may have some bargaining power, Atlassian's scale and market presence give it a strong position in negotiations. The company also has a diverse range of suppliers, which reduces its dependence on any one supplier.

Threat Of New Entrants

The barrier to entry in the software industry is relatively high, particularly in the areas of project management and collaboration tools. New entrants would need to invest significant amounts in product development, marketing, and sales to compete with established players like Atlassian. However, the market is still growing, and new entrants with innovative solutions could potentially disrupt the market.

Intensity Of Rivalry

The software industry is highly competitive, and Atlassian faces intense rivalry from established players like Microsoft, Google, and Salesforce, as well as newer entrants like Notion and Airtable. The competition is particularly fierce in the areas of project management and collaboration tools, where many vendors offer similar solutions. Atlassian must continually innovate and differentiate its products to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.74%
Debt Cost 4.33%
Equity Weight 45.26%
Equity Cost 9.49%
WACC 6.67%
Leverage 120.96%

11. Quality Control: Atlassian Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Karooooo

A-Score: 6.8/10

Value: 2.7

Growth: 7.7

Quality: 9.0

Yield: 5.8

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Intuit

A-Score: 5.5/10

Value: 1.2

Growth: 8.2

Quality: 8.6

Yield: 1.0

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Grab

A-Score: 5.5/10

Value: 0.5

Growth: 8.6

Quality: 6.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Atlassian

A-Score: 4.7/10

Value: 4.7

Growth: 7.1

Quality: 4.1

Yield: 0.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Constellation Software

A-Score: 4.4/10

Value: 1.2

Growth: 8.8

Quality: 6.1

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
FICO

A-Score: 4.0/10

Value: 2.0

Growth: 8.1

Quality: 7.6

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

161.73$

Current Price

161.73$

Potential

-0.00%

Expected Cash-Flows