TEAM AI Stock Analysis – Buy, Hold, or Avoid?
Atlassian Corporation (TEAM)
Atlassian (TEAM) offers compelling long-term growth potential at a significant discount from prior highs, but persistent operating losses and deteriorating liquidity create near-term risks. Technical momentum has turned positive, yet sentiment and fundamentals remain conflicted, making TEAM suitable only for risk-tolerant investors with a long horizon. Short-term volatility and unresolved profitability concerns warrant caution for traders and swing investors.
Fundamentals
Atlassian (TEAM) demonstrates robust revenue growth, high gross margins, and enduring demand for its collaboration software, but persistent operating losses and negative EPS have capped profitability. Recent momentum in growth has been accompanied by notable operational leverage, though the company remains structurally unprofitable. The risk/reward calculus is nuanced given TEAM’s depressed share price alongside strong topline fundamentals and strategic product positioning.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
23.31% YoY
Q4 2025
Net Income
-11.61% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.6B | 1.4B | 1.4B | 1.4B | 1.3B | 1.2B | 1.1B | 1.2B |
| Revenue Growth YoY | +23.31% | +20.61% | +22.34% | +14.09% | +21.35% | +21.48% | +20.50% | +29.90% |
| Net Income | -42.6M | -51.9M | -23.9M | -70.8M | -38.2M | -123.8M | -196.9M | 12.8M |
| Net Income Growth YoY | -11.61% | +58.09% | +87.86% | -655.26% | +54.77% | -288.20% | -234.03% | +106.10% |
| EPS | -$0.16 | -$0.20 | -$0.09 | -$0.27 | -$0.15 | -$0.48 | -$0.76 | $0.05 |
| EPS Growth YoY | -6.67% | +58.33% | +88.04% | -649.90% | +54.55% | -300.00% | -230.43% | +106.06% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 85.02% | 82.00% | 83.07% | 83.81% | 82.66% | 81.68% | 80.78% | 82.05% |
| Operating Margin | -3.07% | -6.72% | -2.06% | -0.92% | -4.47% | -2.69% | -5.92% | 1.50% |
| Net Margin | -2.69% | -3.62% | -1.73% | -5.22% | -2.97% | -10.42% | -17.40% | 1.07% |
| Return on Equity (ROE) | -2.68% | -3.76% | -1.78% | -5.17% | -3.13% | -12.03% | -19.07% | 1.12% |
| Return on Assets (ROA) | -1.27% | -1.24% | -0.53% | -1.63% | -0.98% | -3.63% | -5.43% | 0.37% |
Technical Analysis
Technical indicator data for TEAM is currently unavailable from our internal source. However, leveraging available market data and recent trading activity, TEAM has shown a strong bullish price action with a notable 5.85% rise and volume supporting the move. The stock is trading near its recent highs, indicating a potential momentum-driven rally.
No extreme reading
Price in downtrend
Strong trend active
50 below 200 - bearish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Atlassian (TEAM) demonstrates robust revenue growth, high gross margins, and enduring demand for its collaboration software, but persistent operating losses and negative EPS have capped profitability. Recent momentum in growth has been accompanied by notable operational leverage, though the company remains structurally unprofitable. The risk/reward calculus is nuanced given TEAM’s depressed share price alongside strong topline fundamentals and strategic product positioning.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$1.22
Estimated
$1.12
Surprise
+$0.10
Surprise %
+8.93%
Revenue
Actual
$1.59B
Estimated
$1.65B
Surprise
-$64.16M
Surprise %
-3.89%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.22 | $1.04 | $0.98 | $0.97 | $0.96 | $0.77 | $0.66 | $0.89 |
| EPS (Estimated) | $1.12 | $0.84 | $0.83 | $0.90 | $0.75 | $0.64 | $0.58 | $0.62 |
| EPS Surprise | +$0.10 | +$0.20 | +$0.15 | +$0.07 | +$0.21 | +$0.13 | +$0.08 | +$0.27 |
| % Diff | +8.9% | +24.0% | +17.5% | +7.4% | +27.3% | +20.7% | +13.6% | +43.5% |
| Revenue | ||||||||
| Revenue (Actual) | $1.59B | $1.43B | $1.38B | $1.36B | $1.29B | $1.19B | $1.13B | $1.19B |
| Revenue (Estimated) | $1.65B | $1.4B | $1.36B | $1.35B | $1.24B | $1.16B | $1.13B | $1.1B |
| Revenue Surprise | -$64.16M | +$30.36M | +$28.16M | +$3.52M | +$46.67M | +$32.41M | +$1.27M | +$91.41M |
| % Diff | -3.9% | +2.2% | +2.1% | +0.3% | +3.8% | +2.8% | +0.1% | +8.3% |
Valuation
Atlassian (TEAM) appears to be trading at a significant discount relative to its intrinsic value and sector peers, driven by strong revenue growth and improving operating margins despite current negative earnings and challenging market sentiment. Analyst consensus reflects optimism with moderate buy ratings and price targets indicating potential upside exceeding 100%. However, the valuation is elevated compared to historical norms, reflecting growth expectations balanced against some operational risks and market volatility.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | -250.38 | -202.43 | -558.39 | -196.81 | -415.87 | -83.56 | -58.91 | 984.58 |
| Price to Sales | 26.92 | 29.32 | 38.57 | 41.09 | 49.41 | 34.83 | 41.01 | 42.23 |
| Price to Book | 26.85 | 30.46 | 39.68 | 40.72 | 52.12 | 40.21 | 44.93 | 44.28 |
| Enterprise Value to EBITDA | -7156.98 | -1751.36 | 3036.33 | 2298.59 | -3737.97 | -2134512.07 | -1952.24 | 957.96 |
| Enterprise Value to Revenue | 27.07 | 28.55 | 37.65 | 40.03 | 48.65 | 34.14 | 40.19 | 41.64 |
Sentiment & Analyst Ratings
TEAM stock has experienced significant price weakness recently, dropping over 13% in the last 10 days and down about 55% year-to-date. Despite this near-term weakness, Wall Street analysts maintain a broadly bullish outlook with a strong buy-to-buy consensus and median price targets more than doubling the current price. Social media sentiment appears muted, with limited retail buzz detected.
Analyst Recommendations
Risk Assessment
Atlassian (TEAM) currently exhibits moderate financial risk characterized by liquidity constraints and manageable leverage amid strong revenue growth and positive analyst sentiment. While liquidity ratios indicate short-term pressures, the company's capital structure remains balanced with sustainable debt levels, supported by robust cloud revenue growth and improving cash flow. However, competition intensifies and valuation normalization risks persist, complicating the investment risk profile.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.89 | 1.26 | 1.22 | 1.26 | 1.24 | 1.18 | 1.18 | 1.18 |
| Quick Ratio | 0.89 | 1.26 | 1.22 | 1.26 | 1.24 | 1.18 | 1.18 | 1.18 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.87 | 0.89 | 0.92 | 0.90 | 1.02 | 1.21 | 1.21 | 1.10 |
| Debt-to-Assets | 0.23 | 0.21 | 0.21 | 0.21 | 0.23 | 0.25 | 0.24 | 0.25 |
Liquidity Assessment
Current Ratio: 0.89(Weak)
Quick Ratio: 0.89(Adequate)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 0.87(Moderate)
Debt-to-Assets: 0.23(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about TEAM
AI Answers: Common Questions About TEAM
Get AI-powered answers to the questions investors ask most about Atlassian Corporation
TEAM is trading at $78.12, down 55% YTD and well below its 52-week high of $278.11, with a P/S ratio of ~3.5x versus peers above 5x. While long-term upside is strong if growth and margin improvement continue, persistent operating losses and liquidity pressures mean it's only a good buy for risk-tolerant, long-term investors.
If you are a short-term trader or uncomfortable with volatility, consider reducing exposure given the lack of confirmed technical breakout and deteriorating sentiment. Long-term holders may want to maintain positions, as fundamentals and valuation still support recovery potential if execution improves.
The biggest risks are ongoing negative operating margins (~-2.5%), a current ratio below 1 (recently ~0.9), and intensifying competition from larger players. Share-based compensation and insider selling also threaten dilution and sentiment.
Analyst median price targets range from $152.50 to $189, more than double the current price. Technical resistance is near $78.50-$79, with support at $67.85; a breakout above $79 could target $85 short-term, but long-term targets depend on margin improvement.
TEAM is undervalued relative to historical and peer P/S multiples (3.5x vs. 5x+), but negative P/E (-108.5) and EV/EBITDA reflect ongoing losses. If growth and margin trends persist, current levels offer a margin of safety for long-term investors.
TEAM's fundamentals are strong on the top line, with 19.7% YoY revenue growth and gross margins above 80%, but profitability remains elusive and liquidity has deteriorated (current ratio <1). The business is sticky and recurring, but the lack of GAAP profits is a concern.
Recent price action is bullish with a 5.85% jump and volume support, but confirmation above $78.50-$79 is needed for a sustained breakout. Support is at $67.85; lack of RSI/MACD data limits conviction, so traders should be cautious.
Key catalysts include upcoming earnings (potential for margin inflection or guidance raise), acceleration in cloud revenue, and any evidence of cost control or profitability. Macro trends in enterprise IT spending and competitive developments (AI, Microsoft) are also critical.
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