Is Atlassian Corporation (TEAM) A Good Stock To Buy Now?

<p>Is TEAM a good stock to buy? We came across a <a href="https://sergeycyw.substack.com/p/amazon-atlassian-earnings-and-reddit">bullish thesis </a>on Atlassian Corporation on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on TEAM. Atlassian Corporation's share was trading at $78.01 as of March 10th. TEAM’s forward P/E was 13.97 according to Yahoo Finance.</p>
<p>Computer with charts</p>
<p>Atlassian Corporation provides collaboration software that enables organizations to connect all teams through a system of work that unlocks productivity at scale worldwide. TEAM delivered a strong fourth quarter, reinforcing its position as a leading provider of collaboration and workflow software while demonstrating continued momentum in its cloud transition and AI-driven product ecosystem. The company reported revenue of $1.59 billion, growing 23.4% year-over-year and exceeding expectations, supported primarily by subscription revenue of $1.51 billion, which increased 24.3%.</p>
<p>Cloud revenue reached a major milestone with its first $1 billion quarter, rising 26% year-over-year as enterprises increasingly standardize operations on Atlassian’s cloud platform through multi-year agreements. Remaining Performance Obligations climbed to $3.8 billion, up 44% year-over-year, signaling stronger long-term customer commitments and expanding contract durations. Growth was further supported by strong customer expansion within the installed base, with net revenue retention exceeding 120% and enterprise adoption accelerating across products such as Jira, Confluence, and Jira Service Management, which now serves more than 65,000 customers including over half of the Fortune 500.</p>
<p>Atlassian’s AI initiatives are also gaining traction, with its Rovo platform surpassing five million monthly active users and powering millions of AI-driven workflows, while the Teamwork Collection bundle has already exceeded one million seats in less than nine months, driving higher product adoption and increased average revenue per user.</p>
<p>Profitability improved as gross margin expanded to 87.5% and operating margin reached 27.1%, reflecting operating leverage despite higher AI infrastructure costs. Although free cash flow margin declined due to elevated investments and stock-based compensation, Atlassian’s strong ARR growth, accelerating enterprise adoption, expanding cloud platform, and increasing AI integration position the company for sustained 20%+ growth and improving profitability over the medium term, supporting a constructive long-term outlook for the business.</p>
<p>Previously, we covered a <a href="https://www.insidermonkey.com/blog/atlassian-corporation-team-a-bull-case-theory-1526536/">bullish thesis</a> on Atlassian Corporation (TEAM) by Deep Value Returns in May 2025, which highlighted the company’s strong free cash flow generation, scalable enterprise software model, and management’s target of achieving a 20% CAGR through fiscal 2027. TEAM’s stock price has depreciated by approximately 62.47% since our coverage due to concerns regarding AI disruptions. Sergey shares a similar view but emphasizes Atlassian’s accelerating cloud growth, AI-driven ecosystem, and rising enterprise adoption.</p>