Jira Lives—and AI Is Now Paying Rent
Scores at time of recommendation (June 1, 2026)
5-year stock timeline
2026-08-06 — Q4 FY2026 earnings beat; cloud acceleration; GAAP profitability
Atlassian reported Q4 FY2026 results for the quarter ended June 30, 2026: revenue reached approximately $1.8B, up 28% year-over-year, with cloud revenue climbing roughly 31% to approximately $1.2B. Subscription ARR stood at $6.6B. The company returned to GAAP profitability, posting operating income of roughly $10M for the full fiscal year and a GAAP operating margin near 12% for the quarter [6][3].
Investors interpreted the quarter as validation that Atlassian's multi-year investments in cloud transition and AI were producing durable growth while the company restored margin discipline. Sentiment shifted from growth-at-all-costs toward growth paired with financial restraint. The strong earnings surprise triggered a breakout rally off prior consolidation into a new uptrend [1][4].
2026 (H1) — Management emphasizes AI and disciplined guidance for FY27
Management highlighted strong AI adoption across products and set more conservative FY27 subscription ARR growth guidance at roughly 18%, signaling prudence amid macro uncertainty while maintaining confidence in enterprise momentum [3].
Market perception became more balanced—positive on product-led AI adoption and enterprise traction, yet cautious on near-term ARR growth cadence. Analysts adjusted from aggressive upside models to forecasts emphasizing growth with discipline. Price action showed volatile gap-ups on product and AI news, but respect for guidance kept moves measured; consolidation formed after the initial post-earnings rally [3][1].
2025 — Continued cloud migration and improving margins
Atlassian reported sustained strong cloud revenue growth and margin improvement through FY25, demonstrating narrowing net losses and improving operating leverage. RPO and Subscription ARR growth remained healthy [6].
Investors increasingly framed Atlassian as a scalable SaaS compounder benefiting from cloud migration. The narrative evolved from transition risk to execution on cloud monetization and enterprise upsell. The stock sustained an uptrend with intermittent pullbacks as fundamentals improved, though occasional drawdowns occurred during broader macro and tech sell-offs.
2024-08-31 — Scott Farquhar steps down as co-CEO
Co-founder Scott Farquhar announced his resignation as co-CEO effective August 31, 2024. Mike Cannon-Brookes became sole CEO while Farquhar remained on the board as an advisor [8][10].
The market watched the leadership transition closely. Initial investor concern about the loss of the co-CEO structure gave way to acceptance because Cannon-Brookes maintained leadership continuity and Farquhar retained board oversight. Perception shifted toward a single-CEO execution story with founders still influential. The stock experienced uncertainty-driven choppiness around the announcement, then resumed its prior trend as leadership clarity solidified [10][9].
2023 — Product investments and scale; execution scrutiny
Atlassian continued heavy investment in cloud products and early AI integrations while scaling enterprise sales and partnerships. Investors tracked the mix shift from server and data center to cloud subscriptions and judged the cadence of monetization.
Perception split between believers in long-term upside from cloud and AI, and skeptics concerned about near-term margin dilution from continued investment. The stock narrative centered on a long-term compounder with execution risk. Price action reflected a prolonged consolidation with occasional rallies as the market priced a premium for long-term growth while discounting uncertainty in margins and execution.
2022 — Pandemic tailwinds fade; focus on subscription ARR and enterprise
As pandemic-related remote-work demand normalized, Atlassian emphasized Subscription ARR growth, enterprise wins, and product-led pricing and motion. Management reported steady cloud adoption but faced tougher comparisons against 2020 and 2021.
Investor view shifted from pandemic-driven acceleration toward sustainable product-market fit and ARR-driven valuation. Growth expectations moderated but retained a premium for recurring revenue quality. The stock experienced a pullback from 2021 highs and formed a base while fundamentals stabilized.
2021 — Strong growth, cloud transition in progress
Atlassian posted strong revenue and ARR growth as customers moved from server to cloud. The company announced strategies to monetize cloud and migrate legacy customers.
The market labeled Atlassian a large SaaS growth name and a durable compounder benefiting from digital collaboration secular trends. An earlier uptrend culminated in higher valuations through 2021 before the normalization phase of 2022 and 2023.
Key Points
- Revenue Q2 FY2026: $1.59 billion, +25% YoY, above analyst expectations
- Rovo AI Platform: 1.5 million users, deeply integrated into Jira and Confluence
- Cloud growth +22.5%, land-and-expand model with stable pricing power
- Share buyback program of $2.5 billion initiated
- Revenue growth FY2026 at +31.7% — PEG of 0.68 points to relative valuation attractiveness
- GAAP operating loss burdened by stock-based compensation of $452.6 million (40% of revenue) – structural headwind persists
- Equity ratio improving steadily: 15.9% (2023) → 19.8% (2024) → 22.3% (2025)
Investment Thesis
Atlassian isn't riding on AI hype—the company is embedding AI directly into the workflows that development teams already use every day. The bear case, that AI will render Jira and Confluence obsolete, is losing ground. Snowflake's strong quarterly results and the broader enterprise AI wave suggest companies are expanding their software footprints, not shrinking them. With 1.5 million Rovo users, solid cloud growth, and a PEG below 1, the growth narrative holds up for now—assuming you're willing to accept stock-based compensation as a legitimate cost of that growth.
Key risks and downside factors
Atlassian maintains a diversified product suite spanning Jira, Confluence, Trello, Bitbucket, and Opsgenie across team collaboration, DevOps, and ITSM—markets where no single competitor dominates by category. It faces pressure from large platform consolidators like Microsoft, ServiceNow, and Salesforce that can bundle similar tools or undercut on price, alongside focused SaaS competitors such as GitLab, monday.com, and Asana doing the same. Smaller, faster-growing private companies like Linear and ClickUp are also gaining traction through product-led acquisition strategies. The business carries real exposure to several structural headwinds. Competitive intensity and margin compression remain persistent concerns. The company depends on sustained momentum in cloud adoption and its partner ecosystem staying healthy. Enterprise sales execution and monetization strategy carry execution risk—these aren't trivial at scale. Any material security breach, privacy incident, or regulatory action could damage customer trust and retention more than most SaaS businesses, given the centrality of these tools to customer operations.
- Large platform vendors like Microsoft, ServiceNow, and Salesforce, alongside specialized SaaS competitors, present real pressure on pricing power, net retention rates, and the company's ability to hold market share.
- Customer concentration and monetization risk: the company faces headwinds if it cannot convert free and small-business users into paid tiers or expand seat and license adoption among enterprise customers. This dynamic could constrain revenue growth momentum.
- Security breaches, data privacy violations, or service outages carry material consequences: reputational damage, customer loss, regulatory penalties, and expensive remediation costs.
- Regulatory shifts around data protection, cross-border data flows, export controls, and tax treatment carry real potential to raise compliance expenses or limit where products can operate in important markets.
Competitive landscape
Atlassian (TEAM) operates across software development, IT service management, and work collaboration. Its competitive landscape includes large platform vendors that bundle development tools with workflow automation—Microsoft and ServiceNow chief among them—alongside specialist SaaS competitors like GitLab, monday.com, and Smartsheet. The company faces material headwinds from larger incumbents whose integrated ecosystems create switching costs, execution uncertainty around monetizing cloud and AI capabilities, concentration risk in enterprise accounts with attendant retention pressures, and regulatory and data-security exposure that could elevate operating costs or constrain cross-border activity.
| Company | Ticker |
|---|---|
| Microsoft Corporation | MSFT.NASDAQ |
| ServiceNow, Inc. | NOW.NYSE |
| GitLab Inc. | GTLB.NASDAQ |
| monday.com Ltd. | MNDY.NASDAQ |
| Smartsheet Inc. | SMAR.NYSE |
| Asana, Inc. | ASAN.NYSE |
Private competitors
- Notion Labs
- ClickUp
- Wrike (if still private depending on timeline)
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Performance Figures of Atlassian Corp Plc
Relative Performance vs Benchmarks
| Period | Atlassian Corp Plc | vs DAX | vs S&P 500 (SPY) |
|---|---|---|---|
| 1M | +73.89% | +67.41% | +69.44% |
| 3M | +81.38% | +72.61% | +76.01% |
| 6M | +97.47% | +91.70% | +83.17% |
| 1Y | -2.86% | -11.40% | -24.85% |
| 3Y | -12.47% | -81.13% | -97.17% |
| 5Y | -51.82% | -117.88% | -138.89% |
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Start Free TrialHistorical valuation trends
How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.
| Period | P/E Ratio | P/S Ratio | P/B Ratio | P/CF Ratio |
|---|---|---|---|---|
| Current | -763.7 | 6.3 | 38.8 | 30.4 |
| 1Y ago | -323.4 | 8.3 | 31.5 | 29.9 |
| 3Y ago | -105.7 | 14.6 | 78.6 | 59.3 |
| 5Y ago | -121.9 | 40.6 | 287.9 | 100.7 |
Frequently Asked Questions
Is Atlassian Corp Plc a good investment?
What does Atlassian Corp Plc do?
What are the key metrics for TEAM.NASDAQ?
How has Atlassian Corp Plc's stock price performed?
How is TEAM.NASDAQ valued?
What are the key risks when investing in TEAM.NASDAQ?
- Large platform vendors like Microsoft, ServiceNow, and Salesforce, alongside specialized SaaS competitors, present real pressure on pricing power, net retention rates, and the company's ability to hold market share.
- Customer concentration and monetization risk: the company faces headwinds if it cannot convert free and small-business users into paid tiers or expand seat and license adoption among enterprise customers. This dynamic could constrain revenue growth momentum.
- Security breaches, data privacy violations, or service outages carry material consequences: reputational damage, customer loss, regulatory penalties, and expensive remediation costs.
- Regulatory shifts around data protection, cross-border data flows, export controls, and tax treatment carry real potential to raise compliance expenses or limit where products can operate in important markets.
Who are the main competitors of Atlassian Corp Plc?
- Microsoft Corporation (MSFT.NASDAQ)
- ServiceNow, Inc. (NOW.NYSE)
- GitLab Inc. (GTLB.NASDAQ)
- monday.com Ltd. (MNDY.NASDAQ)
- Smartsheet Inc. (SMAR.NYSE)
- Asana, Inc. (ASAN.NYSE)
Key Metrics
Valuation Metrics
Profitability Metrics
Growth Metrics
Dividend history
Long-term record of paid dividends (amount per share and dividend yield at the time of payment).
Earnings history & estimates
Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.
Historical earnings performance
Analyst estimates for upcoming periods
Key financial figures
Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.
| 2026 | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| Revenue | 6.57B | 5.22B | 4.36B | 3.53B | 2.80B |
| Operating income (EBIT) | 10.36M | -130.39M | -117.08M | -345.22M | 70.08M |
| Net income | -53.83M | -256.69M | -300.52M | -486.76M | -519.51M |
| Free cash flow | 1.32B | 1.42B | 1.42B | 842.30M | 750.46M |
| Total assets | 6.10B | 6.04B | 5.21B | 4.11B | 3.33B |
| Equity | 1.06B | 1.35B | 1.03B | 654.67M | 327.37M |
| Net debt | -6.60M | -1.27B | -927.59M | -820.19M | -70.77M |
PWP Leeway UG (haftungsbeschränkt)
