Core Insights - Atlassian (TEAM) is set to report its first-quarter fiscal 2026 results on October 30, with projected revenues between $1.395 billion and $1.403 billion, indicating a year-over-year growth of 17.8% [1][10] Revenue Estimates - The Zacks Consensus Estimate for revenues is $1.40 billion, aligning with Atlassian's projections [1] - Cloud deployment revenues are estimated at $969.1 million, reflecting a 22.3% increase year-over-year, while Data Center deployment revenues are expected to grow 7.9% to $362.2 million [4][10] Earnings Expectations - The consensus estimate for earnings per share has been revised upward to 83 cents, compared to 77 cents in the same quarter last year [2] - Atlassian has consistently surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 19.9% [2] Growth Drivers - The strong adoption of cloud-based offerings and the trend towards digitalization and hybrid work models are expected to positively impact Atlassian's performance [3] - Demand for key products like Jira Software and Confluence Cloud, along with advanced solutions such as Jira Product Discovery Premium, is anticipated to drive growth [5] - The integration of AI features into collaboration software and a partnership with Google Cloud are likely to enhance revenue [6] Challenges - Despite strong demand, Atlassian's performance may be tempered by a soft IT spending environment and macroeconomic challenges, including high interest rates and inflation [7][10]

Core Thesis - Atlassian Corporation is viewed positively due to its foundational role in enterprise collaboration software and its strategic pivot towards AI and video collaboration, despite recent stock declines and competitive pressures [1][5]. Company Overview - Atlassian Corporation, founded in 2002, has established itself as a key player in enterprise collaboration with products like Jira and Confluence, utilized by over 300,000 companies including major clients such as NASA, Netflix, and Spotify [2][3]. - The company's stock was trading at $168.71 as of October 21st, with a forward P/E ratio of 34.01 [1]. Market Position and Challenges - Despite its central role, Atlassian's stock has dropped over 30% year-to-date due to margin pressures, cautious guidance, and increased competition from companies like Microsoft, GitLab, and newer platforms such as Monday.com and Asana [2]. - The company's product-led growth strategy has created a high-switching-cost ecosystem, but this competitive moat is currently being challenged [3]. Strategic Initiatives - Atlassian is implementing a strategic pivot focused on artificial intelligence, video collaboration, and enterprise expansion, including the development of the AI agent Rovo and the acquisition of Loom for video integration [4]. - The company reported $1.36 billion in quarterly revenue, with cloud revenue increasing by 25% year-over-year, and generated $638 million in free cash flow despite GAAP losses due to strategic investments [4]. Investment Opportunity - The investment thesis suggests that Atlassian's AI-driven transformation could unlock new competitive advantages and accelerate growth, presenting a compelling long-term opportunity for investors at the current share price [5].

Core Insights - Atlassian Corporation has completed the acquisition of The Browser Company of New York Inc., which is known for its Dia and Arc browsers [1] - The objective of this acquisition is to reimagine the browser for knowledge work in the AI era, targeting hundreds of millions of knowledge workers who rely on browsers for their work [1] Company Summary - Atlassian Corporation is a leading provider of team collaboration and productivity software [1] - The Browser Company of New York Inc. is recognized for developing innovative web browsers [1] Industry Context - The acquisition highlights a strategic move to enhance browser capabilities specifically for knowledge work, indicating a shift in how productivity tools are being developed in response to advancements in AI [1]

Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is identified as a strong investment opportunity with over 50% upside potential, supported by a Buy rating and a price target of $235 set by Mizuho Securities analyst Gregg Moskowitz [1]. Group 1: Company Overview - Atlassian Corporation specializes in team collaboration and productivity software, offering products such as Jira Software, Confluence, Jira Service Management, and Loom [3]. Group 2: Recent Developments - On September 18, Atlassian Corporation announced a definitive agreement to acquire DX, a leader in engineering intelligence, aiming to enhance enterprises' understanding of AI investments and improve engineering team productivity [2].

Group 1: Artisan Mid Cap Fund Performance - Artisan Mid Cap Fund's Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX also posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83% in Q3 2025, significantly outperforming the Russell Midcap Growth Index which returned 2.78% [1] - The strong performance was primarily driven by holdings in the health care sector [1] Group 2: Atlassian Corporation Overview - Atlassian Corporation (NASDAQ:TEAM) is recognized as a leading collaboration software provider, with a one-month return of -9.22% and a 52-week gain of 17.42% [2] - As of October 14, 2025, Atlassian's stock closed at $156.37 per share, with a market capitalization of $41.021 billion [2] Group 3: Artisan Mid Cap Fund's Position on Atlassian - Artisan Mid Cap Fund decided to exit its position in Atlassian due to concerns over its cloud revenue growth decelerating to 26% year-over-year and the challenges posed by its seat-based pricing model [3] - The fund expressed that Atlassian needs to transition from a traditional SaaS model to a usage-based or value-based monetization approach, but this shift lacks strong valuation support unless executed effectively [3] - The evolving perspective on SaaS fundamentals and the belief that significant upside is unlikely until Atlassian's AI investments yield substantial revenue contributed to the decision to exit [3] Group 4: Hedge Fund Interest in Atlassian - At the end of Q2 2025, 64 hedge fund portfolios held Atlassian Corporation, a decrease from 82 in the previous quarter [4] - While Atlassian is acknowledged for its potential, the focus has shifted towards certain AI stocks that are perceived to offer greater upside potential and lower downside risk [4]

Core Insights - RIT Capital Partners holds $30,403,742 worth of Atlassian Corporation (NASDAQ:TEAM) shares, representing 3.81% of its portfolio, indicating significant investment interest in the company [1] - Wells Fargo initiated coverage of Atlassian Corporation with an "Overweight" rating and a price target of $216, suggesting a positive outlook for the stock [2] Growth Drivers - Key growth drivers for Atlassian include expanding cloud adoption, AI integration, and strong positioning within enterprises, which are expected to enhance long-term revenue visibility [3] - The ongoing shift to the cloud and robust cross-sell potential across products like Jira, Trello, and Confluence are also highlighted as factors contributing to growth [3] Competitive Edge - Atlassian is viewed as a "control tower" in AI-driven development and collaboration, reinforcing its competitive advantage in the market [4] - The company is actively enhancing its AI capabilities and platform intelligence, evidenced by its recent acquisitions, including a $1 billion purchase of engineering intelligence company DX and a $610 million acquisition of The Browser Co. [4] Company Overview - Atlassian Corporation specializes in the design and sale of collaboration and project management software, positioning itself as a key player in the software industry [5]

Our first shareholder agreement did have actually in there that if we couldn't agree on something, we'd go to a game of scissors, paper, rock, best of three. We never got into any bigger disagreements when that shareholder agreement was actually governing the company. Don't worry, it's a large public company that's no longer in the bylaws, but it was for probably well over a decade.I think we look, we've disagreed over acquisitions. We've disagreed over strategic directions, etc. I've always lived by the ma ...

Core Viewpoint - Atlassian's stock price has experienced a significant decline, reaching its lowest level since August of the previous year, indicating a strong downtrend in the company's market performance [1]. Company Summary - Atlassian's stock, identified by the ticker TEAM, has dropped to a low of $149.40, representing a 55% decrease from its highest point this year [1].

Market Overview - A potential correction in the stock market is emerging, highlighting the vulnerability of gains, especially in large-cap tech stocks that have significantly contributed to this year's rally [1] Analyst Insights - Gary Alexander, with extensive experience in technology sectors and as an adviser to startups, provides insights into current industry themes and trends [1]

Core Viewpoint - Every analyst covering Atlassian believes the stock is undervalued, with price targets suggesting significant upside potential, including a forecast of a 118% increase within the next year [2][10]. Company Overview - Atlassian is transitioning to a cloud-first model, which is expected to drive its valuation significantly higher, with a target price of $320 per share suggested by Morgan Stanley analyst Keith Weiss [3][10]. - The company specializes in enterprise software for project planning, collaboration, and service management, serving over 300,000 customers [3]. Cloud Migration Strategy - Atlassian plans to phase out its data center software, requiring customers to migrate to its cloud platform starting March 2024, with the complete cessation of data center offerings by March 2029 [4]. - The company has seen a 60% year-over-year increase in customer migrations to the cloud during fiscal 2025, indicating strong momentum in this transition [5]. Advantages of Cloud Transition - Migrating to the cloud simplifies software development for Atlassian, allowing for quicker feature rollouts and upselling opportunities, which can enhance revenue [6]. - The integration of artificial intelligence into its cloud offerings has led to a 40% growth in annualized recurring revenue for premium products, with over 2.3 million AI users [7]. Financial Outlook - Management anticipates revenue growth of over 20% annually from 2025 to 2027, with fiscal 2025 revenue expected to be nearly 20% higher than the previous year [9]. - The stock currently trades at 6.5 times the fiscal 2026 sales outlook, with an attractive adjusted price-to-earnings ratio of 35, reflecting strong growth potential [11]. Market Position - Analysts have high expectations for Atlassian, suggesting that even if the company meets conservative management forecasts, the stock remains undervalued and could outperform the market [12].