Atlassian Raises Fiscal 2026 Revenue Forecast Amid AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy TEAM?
Source: Newsfilter
- Revenue Growth Outlook: Atlassian raised its fiscal 2026 revenue growth forecast to approximately 22%, up from the previous 20.8%, reflecting strong confidence in demand for enterprise software services amid increasing AI adoption by clients.
- Cloud Revenue Milestone: The company achieved its first-ever quarter with over $1 billion in cloud revenue, growing 26% year-over-year, with customer count surpassing 350,000, indicating the competitive strength and appeal of its cloud services in the market.
- User Engagement Surge: Rovo surpassed 5 million monthly active users, demonstrating clients' strong reliance on its team management and data analysis tools, further solidifying Atlassian's market position in the enterprise software sector.
- Cash Flow Decline: 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.
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Analyst Views on TEAM
Wall Street analysts forecast TEAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEAM is 235.57 USD with a low forecast of 185.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 98.410
Low
185.00
Averages
235.57
High
320.00
Current: 98.410
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.
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