Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is identified as one of the oversold software stocks with significant upside potential despite current market pressures on SaaS companies [1][3]. Group 1: Analyst Ratings and Price Targets - Wells Fargo analyst Ryan MacWilliams reaffirmed an Overweight rating for Atlassian, lowering the price target from $216 to $155, indicating an adjusted upside potential of nearly 84% [1]. - Oppenheimer analyst Ittai Kidron also lowered the price target for Atlassian from $275 to $150 while maintaining an Outperform rating, suggesting a potential upside of approximately 78% [4]. Group 2: Financial Performance - Atlassian's recent quarterly results were solid, with a minor beat in second-quarter cloud revenue, although the guidance for Q3 cloud revenue was softer [3]. - Kidron noted that the company's second-quarter results exceeded expectations across all metrics, supporting its long-term growth targets despite near-term challenges [5]. Group 3: Company Overview - Atlassian provides collaboration, project management, and IT service tools through a subscription-based model, with offerings including Jira, Confluence, Trello, and Loom [6]. - The company covers a wide range of solutions such as project management, document sharing, video communication tools, service management, and Chat & Agent capabilities [6].

Core Insights - The S&P North American Technology Software Index has declined by 20% in 2026, driven by investor concerns over the impact of artificial intelligence (AI) on enterprise software tools [1] - Atlassian's stock has experienced a significant drop of 39% in 2026 and is down 80% from its peak in 2021, indicating severe market pressure [2] - Despite stock performance, Atlassian's annualized revenue has reached a record high, suggesting that the negative market sentiment may be exaggerated [3] Company Overview - Atlassian offers software products aimed at enhancing organizational productivity through improved collaboration and streamlined workflows [2] - The company's main products, Jira and Confluence, are increasingly being adopted by non-technical departments, expanding their usage beyond software development teams [4] AI Integration - Atlassian launched an AI platform named Rovo in 2024, which enhances Jira and Confluence with advanced search capabilities and integration with third-party applications [5] - Rovo facilitates collaboration among employees through a chat function and allows the creation of custom AI agents for specific tasks, demonstrating its versatility [6] - As of the end of Atlassian's fiscal 2026 second quarter, Rovo has achieved over 5 million monthly active users, marking a significant milestone for a product that is less than two years old [6]

Core Insights - ServiceNow's product expansion is accelerating, leading to measurable growth and reinforcing the case for continued upside [1] - Major fourth-quarter growth drivers include Now Assist, Workflow Data Fabric, Raptor, and CPQ, which have outperformed expectations and gained widespread adoption in large enterprise deals [1][2] Product Expansion and Adoption - Growing attach rates and multi-product adoption are enhancing ServiceNow's expansion, with Workflow Data Fabric included in most large deals and Raptor achieving triple-digit growth in new contract value [2] - Now Assist has surpassed $600 million in annual contract value, indicating strong AI monetization and faster multi-module deployments as customers scale AI for productivity and cost efficiency [2] Enterprise Deal Activity - The product-led momentum is translating into stronger enterprise deal activity, with major contract wins and a rising base of high-value customers [3] - The Zacks Consensus Estimate forecasts revenue growth of over 20% in 2026, supporting a favorable outlook for ServiceNow [3] Competitive Landscape - ServiceNow faces competition from Salesforce and Atlassian in its product expansion efforts [4] - Salesforce is extending its Agentforce into IT service and workflow automation, challenging traditional workflow tools with a unified data platform and embedded AI [5] - Atlassian is accelerating its product expansion with an AI-powered "system of work," integrating various tools and extending service capabilities into HR and finance [6] Financial Performance and Valuation - ServiceNow shares have declined 45.8% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 23.7% [7] - The forward 12-month price/sales ratio for ServiceNow is 6.84X, compared to the sector's 6.54X, indicating that the stock may be overvalued [11] - The Zacks Consensus Estimate for ServiceNow's 2026 earnings is $4.12 per share, reflecting a 17.38% year-over-year increase [14]

Core Viewpoint - Atlassian Corporation (NASDAQ:TEAM) is recognized as one of the best beaten-down growth stocks to buy, despite a slight reduction in its target price by Bernstein due to concerns over the impact of artificial intelligence on the company [1]. Financial Performance - Atlassian's Q2-2026 results showed a revenue growth acceleration to 23.3% year-over-year, reaching a total quarterly revenue of $1.59 billion, up from 20.6% in Q1-2026 [2]. - The data center and marketplace segments contributed significantly to this acceleration, with growth rates of 20.4% (up from 11.0% in Q1-2026) and 9.1% (up from 3.3% in Q1-2026) year-over-year, respectively. The cloud segment maintained steady growth at 26.0% year-over-year [2]. Future Guidance - Following the strong performance in Q2, Atlassian's management has raised its revenue growth guidance for FY2026 to an average of approximately 22%, with specific segment expectations of 24.3% for Cloud, 20.0% for Data Center, and 6.0% for Marketplace [3]. Company Overview - Atlassian Corporation is a software-as-a-service company specializing in team collaboration and productivity software, including products like Jira, Confluence, and Loom. The company is headquartered in San Francisco, California, and was founded in October 2002 by Michael Cannon-Brookes and Scott Farquhar [4].

Core Viewpoint - Software stocks have experienced a significant sell-off, but not all are considered good investment opportunities, with specific recommendations for buying and avoiding certain stocks [1][2]. Group 1: Axon Enterprise (Buy Recommendation) - Axon Enterprise has seen its stock decline approximately 50% from its peak six months ago and 25% from two weeks ago, making it a potential buy [4]. - The company combines hardware and software, creating a resilient ecosystem that retains customers, particularly law enforcement agencies, which are less likely to develop custom AI software [5][7]. - Axon is expected to grow rapidly, with projected revenue growth of 31% for 2025, reaching $2.74 billion, despite a high price-to-sales ratio of 14 [8]. Group 2: Atlassian (Avoid Recommendation) - Atlassian has a large customer base, including over 350,000 customers and 80% of the Fortune 500, but its stock has dropped 72% over the past year due to AI-related fears [9][10]. - The company reported a 23% revenue growth to $1.6 billion in the fiscal second quarter, but it has been GAAP unprofitable for the last 10 years, raising concerns about its long-term viability [10][14]. - Atlassian's products are seen as vulnerable to AI disruption, and the company has been heavily reliant on share-based compensation, which could dilute shareholder value [13][15].

Atlassian (NasdaqGS:TEAM) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsAlex Zukin - Managing Director of Software Equity ResearchGregg Moskowitz - Managing Director of Enterprise SoftwareItay Kidron - Managing DirectorJason Celino - Managing DirectorJoe Binz - CFOKarl Keirstead - Managing Director of Software Equity ResearchKoji Ikeda - Director of Enterprise Software Equity ResearchMartin Lam - Head of Investor RelationsMike Cannon-Brookes - CEO and Co-FounderRaimo Lenschow - Man ...

Atlassian (NasdaqGS:TEAM) Q2 2026 Earnings call February 05, 2026 05:00 PM ET Company ParticipantsGregg Moskowitz - Managing Director of Enterprise SoftwareItay Kidron - Managing DirectorJason Celino - Managing DirectorJoe Binz - CFOKarl Keirstead - Managing Director of Software Equity ResearchKoji Ikeda - Director of Enterprise Software Equity ResearchMartin Lam - Head of Investor RelationsMike Cannon-Brookes - CEORaimo Lenschow - Managing DirectorRyan MacWilliams - VP of Business Performance and Global Tr ...

Financial Data and Key Metrics Changes - Atlassian closed Q2 with an annual run rate revenue surpassing $6 billion, achieving its first-ever $1 billion cloud revenue quarter, which represents a 26% year-over-year increase [5] - Remaining Performance Obligations (RPO) grew 44% year-over-year to $3.8 billion, indicating strong future revenue visibility [5] Business Line Data and Key Metrics Changes - The cloud revenue segment saw significant growth, contributing to the overall revenue increase, while the Data Center (DC) segment is expected to decline due to tough comparisons [31][30] - The Teamwork Collection, which includes AI capabilities, has seen over 1 million seats sold in under nine months, indicating strong adoption and demand [22] Market Data and Key Metrics Changes - Atlassian reported a net revenue retention (NRR) rate of over 120%, reflecting strong customer loyalty and expansion [19] - The company noted that customers using AI code generation tools experienced a 5% increase in task creation and monthly active users compared to those not using these tools [6][60] Company Strategy and Development Direction - Atlassian is focusing on enterprise, AI, and system-of-work transformations, positioning itself as a strategic partner for large enterprises [5][9] - The company is committed to enhancing its AI capabilities and integrating them into customer workflows, which is seen as a key driver for future growth [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, emphasizing the importance of AI in driving customer engagement and operational efficiency [9][35] - Despite market noise and concerns, management believes that Atlassian is well-positioned to help customers navigate challenges and improve their business processes [15][16] Other Important Information - Atlassian's service collection is growing rapidly, with over 65,000 customers and significant year-over-year growth in the enterprise segment [67] - The company is recognized as a leader in enterprise service management, with a strong focus on integrating AI into service workflows [69] Q&A Session Summary Question: Changes in customer conversations and AI's impact - Management noted that customer conversations have become more strategic, with clients seeking partnerships to leverage AI capabilities, which are driving upgrades to the Teamwork Collection [12][13] Question: Pricing evolution and customer preferences - Management indicated that current pricing models are delivering value, and customers prefer predictable, seat-based pricing, which aligns with their needs [20][21] Question: Competitive landscape and AI tools - Management acknowledged the emergence of new AI tools but emphasized the unique value of Atlassian's offerings and its integration capabilities with various platforms [25][27] Question: Cloud migration impact on revenue - Management reported healthy cloud migrations contributing mid- to high-single-digit impacts to cloud revenue growth rates [49] Question: Seat expansion dynamics - Management highlighted broad-based seat expansion across both tech and non-tech users, particularly in business functions, indicating strong demand for Atlassian's products [52][56] Question: JSM growth and competitive dynamics - Management confirmed that the service collection is performing well, with significant growth in HR and finance sectors, and emphasized the importance of integrating AI into service workflows [68][69]

智通财经APP获悉，进入新年仅一个月，软件板块的紧张情绪已迅速升温。在人工智能浪潮席卷之下， 市场担忧AI工具将侵蚀传统软件公司的市场份额，尤其是项目管理与工作流管理领域，被华尔街视为 最可能遭到"颠覆"的赛道之一。 不过，分析师认为，Atlassian(TEAM.US)与Monday.com(MNDY.US)或许并非AI威胁下的"受害者"，反 而可能成为赢家。 两家公司将在未来几天陆续公布财报,Atlassian将于周四美股收盘后发布第二财季业绩，Monday.com则 将在下周一开盘前披露第四财季数据。Cantor分析师Thomas Blakey预计，两家公司业绩有望缓解市场 对AI冲击的担忧。 过去12个月，由于投资者对AI替代风险的焦虑不断加剧，Atlassian与Monday.com股价均累计下跌超过 60%。市场担心，AI驱动的新型开发模式和自动化工具可能削弱项目管理软件的需求。 但Blakey指出，两家公司对自身产品与AI整合能力保持信心，尤其是在与Anthropic旗下Claude模型的集 成方面,这正是引发行业焦虑的核心AI平台之一。 Blakey预计，Atlassian云业务收入将在本季度 ...

Select Wall Street analysts think shares of Datadog and Atlassian are headed much higher in the next year.The S&P North American Technology Software Index, which tracks 111 software stocks, has fallen 24% from the record high it reached in September 2025. That puts the index in bear market territory. Investors are worried that artificial intelligence (AI) coding tools will limit demand for software in the future.I think the market is too pessimistic. Morgan Stanley's fourth-quarter CIO survey suggests softw ...