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what it is
Atlassian sells the software your team uses to track work, write docs, and keep projects from turning into group-chat archaeology.
how it gets paid
Last year Atlassian made $5.2B in revenue. Americas was the main engine at $2.50B, or 48% of sales.
why it's growing
Revenue grew 19.7% last year. The clean read is simple. Demand stayed strong and gross margin was 83.6%.
what just happened
Latest quarter revenue hit $3.0B, up 90% vs. prior year, even as EPS stayed negative at -$0.36.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
40/100 earnings predictability — expect surprises
25.5x trailing p/e — priced about right
73.0% return on capital — a money-printing machine
xvary composite: 51/100 — below average
What they do
Atlassian sells the software your team uses to track work, write docs, and keep projects from turning into group-chat archaeology.
80% of the Fortune 500 use Atlassian products. Switching costs → leaving means moving your tickets, docs, and workflows somewhere else → so what: once your team is in, getting out is painful. That stickiness helped push annual revenue to $5.2 billion.
How they make money
$5.2B
annual revenue · their business grew +19.7% last year
Americas
$2.50B
EMEA
$2.13B
Asia-Pac
$0.57B
The products that matter
work management and documentation
Jira and Confluence
core to the $5.2B revenue base
this pair anchors the core workflow stack, and the latest warning sign is simple: company growth slowed to 4.2% last quarter.
core stack
code collaboration and team productivity
Bitbucket and Trello
used across 80% of Fortune 500
standalone revenue is not broken out here, which tells you the bet is the suite. the proof is reach: 80% of the Fortune 500 use company products.
suite breadth
AI search and workflow layer
Rovo search
early, but strategically important
the disclosed number to watch is behavior, not revenue: customers using external AI code-generation tools with Jira expanded suite growth by over 5% more than those without.
AI response
Key numbers
27.0%
sales outlook
The stock case leans on revenue growing from $5.2 billion toward $6.0 billion. If that pace breaks, the multiple has less to stand on.
2.5%
operating margin
Operating margin → profit left after running the business → so what: Atlassian is still losing money on operations while being priced like a proven machine.
73.0%
return on capital
Return on capital → profit generated from money put into the business → so what: when Atlassian does scale, it can be absurdly efficient.
$151
18-month target
That target is 27% above $118.55. The market is pricing in doubt, not zero growth.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 10 / 100
- long-term debt $988M (3% of capital)
- net profit margin 21.6% — keeps 22 cents of every dollar in revenue
- return on equity 87% — $0.87 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TEAM 3 years ago → it's now worth $8,010.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue hit $3.0B, up 90% vs. prior year, even as EPS stayed negative at -$0.36.
The clean read is simple. Demand stayed strong and gross margin was 83.6%, but Atlassian still has to convert that software margin into durable operating profit.
$3.0B
revenue
-$0.36
eps
83.6%
gross margin
the number that mattered
Revenue growth of 90% mattered most because it shows customers are still buying, even while the market punishes any software stock with a messy profit picture.
-
management sees total revenue growth approximating 20.8%, and operating margins around 25.5%, implying non-gaap earnings per share in the vicinity of $4.65 (versus roughly $3.68 in non-gaap earnings per share in the prior fiscal year), or $0.50 above our prior call.long-term questions about the threat of artificial intelligence (ai) continue to keep a lid on the share price.
-
team suffered a 48% collapse in value during calendar 2025.like several other software providers, atlassian is dealing with concerns over demand for its enterprise software products, as well as the integration of its own internal ai agents with increasingly more powerful ai coding solutions. it is not hard to envision a future where a number of software engineers that deploy various atlassian work-flow enhancing solutions are displaced. ceo michael cannon-brookes addressed such lingering concerns during the last conference call, stating that he believes that there will be even more software developers in five years’ time.
-
his optimism is based on atlassian’s current installed base (80% of the fortune 500 use company products).
-
the core jira solution is mission critical to operating and technical functions; it and other new products, such as rovo search, are being complemented by internally-created ai applications.
-
most importantly, customers using external ai cogeneration tools with jira were actually expanding their suite growth by over 5% than those without.still, it is difficult to tell if this sort of healthy coexistence can continue as ai advancements persist.
source: company earnings report, 2026
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What could go wrong
the #1 risk is AI changing how developers use Jira-centered workflows.
med
AI compresses workflow seats
Management is arguing AI helps usage, but the market is worried smarter coding tools reduce the need for some workflow layers. That is why a company with 19.6% net margins can still trade like a problem child.
If quarterly growth stays near 4.2% instead of moving toward the roughly 20.8% outlook, investors will assume the slowdown is structural.
med
regulatory scrutiny of the core suite
The same embedded workflow position that makes Atlassian sticky also attracts attention. The page data is thin on remedy detail, but the exposure is obvious: this is effectively one suite-led business, not a loose collection of unrelated segments.
Any regulatory action that changes product bundling or workflow integration would hit the same $5.2B revenue base investors are paying for.
med
guidance has to do real work now
A stock that trailed the market by $6,760 on a $10,000 starting investment does not get much benefit of the doubt. The business can be solid and the shares can still disappoint if growth and margin targets slip.
The current setup leans on about $4.65 in non-GAAP EPS and 25.5% operating margins. Miss both, and the valuation debate gets harsher.
These risks sit over essentially all of the $5.2B revenue base because Atlassian is still one workflow-platform story in practice, and the latest 4.2% growth print already showed how quickly sentiment can break.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
whether AI is helping or replacing the stack
The company says Jira customers using external AI code-generation tools expanded suite growth by over 5% more than those without. You want that gap to persist.
metric
quarterly revenue growth
Last quarter's 4.2% growth is the weak spot. A move back toward the roughly 20.8% full-year outlook would calm the story fast.
trend
suite expansion inside the installed base
80% of the Fortune 500 already use company products. From here, the bull case is less about winning logos and more about expanding usage inside accounts you already have.
calendar
the next guidance check
Watch the next earnings update for two numbers: about 25.5% operating margin and about $4.65 non-GAAP EPS. Those are the promises on the table.
Analyst rankings
short-term outlook
below average
momentum score 4. in human-speak, analysts think this likely lags unless the growth story firms up.
risk profile
average
stability score 3. You are not buying a disaster balance sheet. You are buying a stock the market likes to argue about.
chart momentum
average
technical score 3. There is no rescue signal in the chart right now.
earnings predictability
40 / 100
The forecast range is wider than you want for a company still trying to re-earn trust.
source: institutional data
Institutional activity
361 buyers vs. 439 sellers in 3q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$85
$216
$119
current price
$151
target midpoint · +27% from current · 3-5yr high: $216
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