Atlassian Stock Plummets Despite Record Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy TEAM?
Source: Fool
- Stock Decline: Atlassian's stock has plummeted 39% in 2026 and is down 80% from its 2021 peak, reflecting investor panic over AI potentially rendering enterprise software tools obsolete, despite the company achieving record revenue.
- Accelerating Revenue Growth: In Q2 of fiscal 2026, Atlassian generated $1.6 billion in total revenue, a 23% year-over-year increase, marking the fastest quarterly growth rate in nearly two years, showcasing strong performance driven by its AI platform.
- Significant User Growth: Atlassian's AI platform Rovo has surpassed 5 million monthly active users within less than two years of launch, indicating rapid customer adoption of new technology and further solidifying the company's market position.
- Market Opportunities Remain: Despite AI competition, Atlassian's addressable market is estimated at $67 billion with an annual growth rate of approximately 13%, and management believes that AI technology will add value to its business rather than pose a threat.
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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: 92.920
Low
185.00
Averages
235.57
High
320.00
Current: 92.920
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 Stock Plummets Despite Record Revenue Growth
- Stock Decline: Atlassian's stock has plummeted 39% in 2026 and is down 80% from its 2021 peak, reflecting investor panic over AI potentially rendering enterprise software tools obsolete, despite the company achieving record revenue.
- Accelerating Revenue Growth: In Q2 of fiscal 2026, Atlassian generated $1.6 billion in total revenue, a 23% year-over-year increase, marking the fastest quarterly growth rate in nearly two years, showcasing strong performance driven by its AI platform.
- Significant User Growth: Atlassian's AI platform Rovo has surpassed 5 million monthly active users within less than two years of launch, indicating rapid customer adoption of new technology and further solidifying the company's market position.
- Market Opportunities Remain: Despite AI competition, Atlassian's addressable market is estimated at $67 billion with an annual growth rate of approximately 13%, and management believes that AI technology will add value to its business rather than pose a threat.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
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US Stocks Mixed as Software Sector Declines
- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
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Atlassian Corp Falls 6.5%, Intuit Declines 5.7%, Adobe Decreases 2.6%, CrowdStrike Dips 0.9%
Atslassian Corp Performance: Atlassian Corp's stock has decreased by 6.5%.
Intuit Financial Results: Intuit's stock has seen a decline of 5.7%.
Adobe Stock Movement: Adobe's stock has dropped by 2.6%.
CrowdStrike Performance: CrowdStrike's stock has fallen by 0.9%.
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US Software Companies Experience Decline in Stock Prices
Software Firms' Challenges: Many software firms are facing significant challenges, leading to a decline in their market performance and overall stability.
Impact of Economic Conditions: The current economic conditions are contributing to the struggles of these firms, affecting their growth and profitability.
Market Reactions: Investors are reacting to the downturn in the software sector, with many reassessing their portfolios and investment strategies.
Future Outlook: The future of software firms remains uncertain, with potential for recovery depending on market adjustments and economic improvements.
See More
Freshworks Stock Plummets 18.4% Following Company’s Annual Profit Forecast Below Expectations
Company Performance: Freshworks shares have tumbled by 18.4% following disappointing annual profit forecasts.
Profit Estimates: The company's projected profits fell below market expectations, leading to a significant drop in share value.
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Atlassian Stock Plummets Despite Record Revenue Growth
- Stock Decline: Atlassian's stock has plummeted 39% in 2026 and is down 80% from its 2021 peak, reflecting investor panic over AI potentially rendering enterprise software tools obsolete, despite the company achieving record revenue.
- Accelerating Revenue Growth: In Q2 of fiscal 2026, Atlassian generated $1.6 billion in total revenue, a 23% year-over-year increase, marking the fastest quarterly growth rate in nearly two years, showcasing strong performance driven by its AI platform.
- Significant User Growth: Atlassian's AI platform Rovo has surpassed 5 million monthly active users within less than two years of launch, indicating rapid customer adoption of new technology and further solidifying the company's market position.
- Market Opportunities Remain: Despite AI competition, Atlassian's addressable market is estimated at $67 billion with an annual growth rate of approximately 13%, and management believes that AI technology will add value to its business rather than pose a threat.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
US Stocks Mixed as Software Sector Declines
- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
See More
Atlassian Corp Falls 6.5%, Intuit Declines 5.7%, Adobe Decreases 2.6%, CrowdStrike Dips 0.9%
Atslassian Corp Performance: Atlassian Corp's stock has decreased by 6.5%.
Intuit Financial Results: Intuit's stock has seen a decline of 5.7%.
Adobe Stock Movement: Adobe's stock has dropped by 2.6%.
CrowdStrike Performance: CrowdStrike's stock has fallen by 0.9%.
See More
US Software Companies Experience Decline in Stock Prices
Software Firms' Challenges: Many software firms are facing significant challenges, leading to a decline in their market performance and overall stability.
Impact of Economic Conditions: The current economic conditions are contributing to the struggles of these firms, affecting their growth and profitability.
Market Reactions: Investors are reacting to the downturn in the software sector, with many reassessing their portfolios and investment strategies.
Future Outlook: The future of software firms remains uncertain, with potential for recovery depending on market adjustments and economic improvements.
See More
Freshworks Stock Plummets 18.4% Following Company’s Annual Profit Forecast Below Expectations
Company Performance: Freshworks shares have tumbled by 18.4% following disappointing annual profit forecasts.
Profit Estimates: The company's projected profits fell below market expectations, leading to a significant drop in share value.
See More
