Atlassian Raises Revenue Forecast Amid AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy TEAM?
Source: Newsfilter
Atlassian Corp's stock fell 6.67% and hit a 52-week low amid broader market gains, with the Nasdaq-100 up 0.67% and the S&P 500 up 0.42%.
The company raised its fiscal 2026 revenue growth forecast to approximately 22%, up from 20.8%, reflecting strong confidence in demand for enterprise software services amid increasing AI adoption by clients. Despite reporting second-quarter revenue of $1.59 billion, exceeding market expectations, free cash flow fell by approximately 51% to $168.5 million, which may exert pressure on investor confidence and impact stock performance.
While Atlassian's revenue growth outlook is positive, the significant decline in free cash flow raises concerns about its financial health. Investors are closely monitoring the company's ability to maintain its growth trajectory in a competitive landscape increasingly influenced by AI technologies.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TEAM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TEAM
Wall Street analysts forecast TEAM stock price to rise
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 83.610
Low
185.00
Averages
235.57
High
320.00
Current: 83.610
Low
185.00
Averages
235.57
High
320.00
About TEAM
Atlassian Corporation is a provider of team collaboration and productivity software. The Company specializes in software development, work management, and enterprise service management software, which enables enterprises to connect their business and technology teams with an artificial intelligence (AI)-powered system of work. Its interconnected portfolio of apps, AI agents, and Collections, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams. Its apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model: a common technology foundation that connects teams, information, and workflows throughout an organization. Its apps include Jira, Confluence, Loom, Jira Service Management, Rovo, Bitbucket, Compass, Jira Product Discovery, Jira Align, Focus and Talent. It offers team collaboration products on its Data Center deployment option. It operates the Dia and Arc browsers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Atlassian Appoints New CFO James Chuong Effective March 2026
- Executive Appointment: Atlassian has appointed James Chuong as Chief Financial Officer, effective March 30, 2026, bringing valuable financial management experience from his previous role as CFO at LinkedIn, which is expected to provide new strategic insights for the company.
- Financial Growth Target: The company aims for over 20% annual revenue growth through FY27, driven by accelerating AI adoption and enterprise expansion, reflecting strong confidence amid current market volatility in the software sector.
- Market Analysis: Analysts highlight selective opportunities within the software sell-off, suggesting that Atlassian's strategic positioning may allow it to stand out in a competitive landscape, further solidifying its market position.
- Future Outlook: With the rapid development of AI, Atlassian's growth strategy will focus on enterprise expansion, which is anticipated to drive continued growth and innovation in the SaaS sector.
See More
Atlassian Appoints New CFO James Chuong
- Executive Appointment: Atlassian has announced the appointment of James Chuong as Chief Financial Officer, effective March 30, 2026, which is expected to enhance the company's financial management capabilities through his 20 years of finance leadership experience.
- Extensive Experience: James Chuong previously served as CFO at LinkedIn, where he drove the company to over 1 billion members and $18 billion in revenue, showcasing his strong background and leadership in the technology sector.
- Strategic Mindset: Atlassian CEO Mike Cannon-Brookes stated that James is the strategic thinker the company needs right now, capable of understanding the technology industry and market, and is expected to support the company's rapid growth in the AI era.
- Educational Background: James holds an MBA from The Wharton School at the University of Pennsylvania and a Bachelor of Arts in Business Administration from the University of San Diego, and his educational background combined with his professional experience is expected to inject new vitality into Atlassian's future development.
See More
Disruption in Software Creates New Opportunities
- Strong Housing Starts: The latest data shows housing starts at 1.404 million, exceeding the expected 1.320 million, indicating a robust recovery in the real estate market that could drive demand for related construction materials and services.
- Increase in Building Permits: Building permits issued reached 1.448 million, surpassing the forecast of 1.412 million, signaling positive future construction activity that may boost investments and job growth in the construction sector.
- Money Flows in Magnificent Seven: In early trading, positive money flows were observed in Amazon, Microsoft, and NVIDIA, reflecting investor confidence in these tech giants, which could drive their stock prices higher and influence overall market sentiment.
- Negative Flows for Meta: In contrast to other Magnificent Seven stocks, Meta experienced negative money flows, potentially indicating market concerns about its future growth, which may impact its stock performance and prompt investors to reassess their positions.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
Figma Launches AI Design Conversion Feature
- AI Design Conversion Feature: Figma has partnered with Anthropic to launch the 'Code to Canvas' feature, which converts code generated by AI tools into editable designs, aiming to enhance team efficiency despite the risk of AI tools potentially replacing design roles.
- Market Reaction: Since its IPO last summer, Figma's stock has plummeted approximately 85% from its 52-week high of $142.92, reflecting the broader malaise in the SaaS sector amid what traders are calling the 'SaaSpocalypse'.
- Industry Impact: As AI tools continue to advance, the design refinement step may be skipped altogether, posing a challenge to Figma's market positioning and potentially affecting its future user retention and market share.
- Upcoming Earnings Report: Figma is set to release its earnings report after market close on Wednesday, with high investor interest in how the company plans to navigate current market pressures and competitive dynamics.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Atlassian Appoints New CFO James Chuong Effective March 2026
- Executive Appointment: Atlassian has appointed James Chuong as Chief Financial Officer, effective March 30, 2026, bringing valuable financial management experience from his previous role as CFO at LinkedIn, which is expected to provide new strategic insights for the company.
- Financial Growth Target: The company aims for over 20% annual revenue growth through FY27, driven by accelerating AI adoption and enterprise expansion, reflecting strong confidence amid current market volatility in the software sector.
- Market Analysis: Analysts highlight selective opportunities within the software sell-off, suggesting that Atlassian's strategic positioning may allow it to stand out in a competitive landscape, further solidifying its market position.
- Future Outlook: With the rapid development of AI, Atlassian's growth strategy will focus on enterprise expansion, which is anticipated to drive continued growth and innovation in the SaaS sector.
See More
Atlassian Appoints New CFO James Chuong
- Executive Appointment: Atlassian has announced the appointment of James Chuong as Chief Financial Officer, effective March 30, 2026, which is expected to enhance the company's financial management capabilities through his 20 years of finance leadership experience.
- Extensive Experience: James Chuong previously served as CFO at LinkedIn, where he drove the company to over 1 billion members and $18 billion in revenue, showcasing his strong background and leadership in the technology sector.
- Strategic Mindset: Atlassian CEO Mike Cannon-Brookes stated that James is the strategic thinker the company needs right now, capable of understanding the technology industry and market, and is expected to support the company's rapid growth in the AI era.
- Educational Background: James holds an MBA from The Wharton School at the University of Pennsylvania and a Bachelor of Arts in Business Administration from the University of San Diego, and his educational background combined with his professional experience is expected to inject new vitality into Atlassian's future development.
See More
Disruption in Software Creates New Opportunities
- Strong Housing Starts: The latest data shows housing starts at 1.404 million, exceeding the expected 1.320 million, indicating a robust recovery in the real estate market that could drive demand for related construction materials and services.
- Increase in Building Permits: Building permits issued reached 1.448 million, surpassing the forecast of 1.412 million, signaling positive future construction activity that may boost investments and job growth in the construction sector.
- Money Flows in Magnificent Seven: In early trading, positive money flows were observed in Amazon, Microsoft, and NVIDIA, reflecting investor confidence in these tech giants, which could drive their stock prices higher and influence overall market sentiment.
- Negative Flows for Meta: In contrast to other Magnificent Seven stocks, Meta experienced negative money flows, potentially indicating market concerns about its future growth, which may impact its stock performance and prompt investors to reassess their positions.
See More
U.S. Stocks Close Mixed, Apple Shares Rise on Product Launch News
- Market Performance Fluctuates: On Tuesday, the S&P 500 rose by 0.10%, the Dow Jones increased by 0.07%, while the Nasdaq 100 fell by 0.13%, indicating a mixed market recovery from early losses, with the Nasdaq 100 hitting a 2.75-month low, reflecting investor caution towards tech stocks.
- Apple Product Launch Boost: Apple shares surged over 3% after announcing a product launch on March 4, with several new devices expected in the coming weeks, which not only boosted Apple's market performance but also generated positive sentiment across the tech sector.
- Airline Stocks Rally: Airline stocks showed strong performance on Tuesday, led by a 6% increase in Southwest Airlines after UBS upgraded its rating from neutral to buy with a price target of $73, which not only enhanced the overall performance of airline stocks but also contributed to a more optimistic market outlook.
- Mixed Economic Data: The U.S. February NAHB housing market index unexpectedly fell to a 5-month low of 36, below the expected 38, while the February Empire manufacturing survey slightly declined to 7.1, indicating uncertainty in economic recovery, as the market remains focused on upcoming corporate earnings and economic news.
See More
Figma Launches AI Design Conversion Feature
- AI Design Conversion Feature: Figma has partnered with Anthropic to launch the 'Code to Canvas' feature, which converts code generated by AI tools into editable designs, aiming to enhance team efficiency despite the risk of AI tools potentially replacing design roles.
- Market Reaction: Since its IPO last summer, Figma's stock has plummeted approximately 85% from its 52-week high of $142.92, reflecting the broader malaise in the SaaS sector amid what traders are calling the 'SaaSpocalypse'.
- Industry Impact: As AI tools continue to advance, the design refinement step may be skipped altogether, posing a challenge to Figma's market positioning and potentially affecting its future user retention and market share.
- Upcoming Earnings Report: Figma is set to release its earnings report after market close on Wednesday, with high investor interest in how the company plans to navigate current market pressures and competitive dynamics.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
