Company Reports

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with other solutions like Confluence, a collaboration tool, or included in the Teamwork collection. The company has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Atlassian reported fourth-quarter results that once again crushed guidance, with revenue up 28% year over year to $1.766 billion and non-GAAP operating margin of 36.0%, versus the high end of guidance at $1.661 billion and 30.5%, respectively.

Atlassian hosted an investor session at its Team 2026 conference that showcased its artificial intelligence solutions and overall innovation, announced a variety of new products, addressed broader AI fears head-on, and assessed the addressable market in an evolving software market.

Atlassian reported third-quarter results that crushed guidance, with revenue up 32% year over year to $1.787 billion and non-GAAP operating margin of 31.7%, versus the high end of guidance at $1.697 billion and 27.5%, respectively.

The pace of change in the software industry has accelerated in recent months, leading to heightened uncertainty and prompting us to reassess our moat ratings.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The company has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Atlassian reported second-quarter results that once again easily topped guidance, with revenue up 23% year over year to $1.586 billion and non-GAAP operating margin of 27.1%, versus the high end of guidance at $1.539 billion and 24.5%, respectively.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The company has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Atlassian reported first-quarter results that easily topped guidance, with revenue up 21% year over year to $1.433 billion and non-GAAP operating margin of 22.6%, versus the high end of guidance at $1.403 billion and 20.5%, respectively.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The company has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Atlassian reported fourth-quarter results that handily topped guidance, with revenue up 22% year over year to $1.384 billion and non-GAAP operating margin of 24.3%, versus the midpoint of guidance at $1.354 billion and 22.0%, respectively.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The firm has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Atlassian reported third-quarter results that handily topped guidance. Revenue grew by 14% year over year to $1.357 billion, while non-GAAP operating margin was 25.7%, versus the midpoint of guidance at $1.35 billion and 23.5%, respectively.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The firm has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Narrow-moat Atlassian delivered strong second-quarter results that crushed our revenue and profitability expectations, while providing guidance that was also better than we or the street anticipated. We therefore are raising our fair value estimate to $270 per share, from $220 previously based on better growth and profitability through the medium term. Based on the surging stock in after-hours trading, we see shares as overvalued. However, if we based our model off of similar levels of outperformance for the rest of the year as we see in the second quarter, we could make a case for the stock being fairly valued.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The firm has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

Narrow-moat Atlassian delivered strong first-quarter results, exceeding our revenue and profitability expectations. We attribute the firm's upside to improvements in the macroeconomic environment, as well as the stabilization of small and medium customer spending. The company’s cloud segment continues to be a bright spot, and we believe the jump in the after-hours share price is related to management’s updated guidance of total revenue growth from 16% to now 16.75% at the midpoint along with a compelling artificial intelligence portfolio, serving as a revenue expansion opportunity. Given growing outperformance and better-than-anticipated guidance, we increased our estimates, primarily for profitability, and accordingly are raising our fair value estimate to $220 per share from $195 previously. Despite this increase, we see shares as fairly valued, given the spike on results.

Narrow-moat Atlassian reported solid fourth-quarter results, including an upside to our top and bottom-line expectations. While guidance fell short of our model for both the first quarter and the full year for fiscal 2025, the sharp selloff in the aftermarket indicates investors were similarly disappointed. As a result of guidance, we lowered our estimates, particularly for revenue growth, over the next five years. Therefore, we are lowering our fair value estimate to $195 from $225. While we see an upside to the stock from here, we struggle to reconcile the meaningful slowdown in guidance for revenue growth throughout this year, coupled with the acceleration required to hit the firm’s 2027 goal.

Atlassian endeavors to “unleash the potential of teams” through better planning, project management, and workflow software, and we think its strong momentum is likely to continue in the coming years as the transition to the cloud continues. Atlassian’s original product, Jira, was designed as a workflow solution for software developers that has grown into a richly featured, easy-to-use, inexpensive, easy-to-buy application. The software is often bundled with Confluence, a collaboration tool. The firm has also gradually moved upmarket toward enterprise customers, even as it continues to serve customers of all sizes.

We maintain our narrow moat rating for Atlassian after it hosted its 2024 investor day where it focused on its medium-term financial targets, growth vectors, and its research and development efforts. We make no changes to our model and thus maintain our fair value estimate of $225 per share. We appreciate the granular disclosures by management and think they support a positive story around the firm. We see shares as undervalued, especially in light of management’s new financial targets.