Atlassian Corporation (TEAM): A Bull Case Theory

We came crossed a bullish thesis connected Atlassian Corporation connected Compounding Your Wealth’s Substack by Sergey. In this article, we volition summarize the bulls’ thesis connected TEAM. Atlassian Corporation's stock was trading astatine $149.52 arsenic of November 28th. TEAM’s guardant P/E was 30.67 according to Yahoo Finance.

Charts connected the computer

Atlassian Corporation provides collaboration bundle that enables organizations to link each teams done a strategy of enactment that unlocks productivity astatine standard worldwide. TEAM delivered a beardown 4th with $1.43 cardinal successful revenue, up 20.6% twelvemonth implicit twelvemonth and up of expectations, driven chiefly by subscription and unreality momentum.

Cloud gross grew 26% to $998 cardinal arsenic endeavor migrations accelerated nether programs similar Ascend and FastShift, doubling migrated seats and deepening partnerships with planetary strategy integrators. Remaining Performance Obligations surged 42% to $3.3 billion, reinforcing management’s assurance successful sustained maturation and prompting an summation successful unreality guidance to 22.5% for FY2026.

Despite short-term accounting headwinds from the displacement to ratable unreality billing and little unreality marketplace instrumentality rates, fundamentals strengthened crossed bookings, CRPO, and nett expansion, which held dependable astatine astir 120%. AI adoption continued to standard rapidly, with 3.5 cardinal monthly progressive AI users and tripled token consumption. The Rovo platform precocious enterprise-grade AI workflows, portion integrations with Jira, Confluence, Loom, and Service Management expanded usage cases crossed development, design, and enactment teams.

Loom surpassed $100 cardinal ARR 2 years post-acquisition, and upcoming acquisitions specified arsenic DX and The Browser Company further reenforce Atlassian’s ambition to physique an AI-first strategy of work. Customer adoption broadened crossed ample enterprises, with 80% of the Fortune 500 and 60% of the Forbes AI 50 utilizing Atlassian’s products, and large brands specified arsenic Databricks, Ford, and Wells Fargo deepening level reliance.

While nett caller ARR dipped somewhat and CAC payback lengthened, the institution maintained beardown margins, delivered a sizable EPS beat, and issued Q4 guidance supra consensus. With migrations expected to highest successful FY2028–2029 and absorption reaffirming a semipermanent 20% CAGR target, Atlassian enters FY2026 with strengthened momentum and expanding cloud- and AI-driven visibility.

Previously, we covered a bullish thesis connected Atlassian Corporation (TEAM) by Deep Value Returns successful May 2025, which highlighted its beardown escaped currency travel engine, disciplined disbursal management, and semipermanent 20% CAGR target. The company’s banal terms has depreciated by astir 28.07% since our coverage. This is due to the fact that the thesis didn’t afloat play out. The thesis inactive stands arsenic absorption maintains durable maturation expectations. Sergey shares a akin presumption but emphasizes accelerating unreality and AI momentum.