TLDR
- Atlassian (TEAM) hit a 52-week high of $198.60, with the stock up around 165% over the past six months.
- Q4 adjusted EPS came in at $1.87, beating the $1.50 consensus estimate; revenue of $1.77 billion topped expectations of $1.66 billion.
- Cloud revenue grew 31% year-over-year to $1.21 billion; remaining performance obligations surged 44% to $4.8 billion.
- BTIG maintained its Buy rating and $230 price target, keeping Atlassian as its top sector pick.
- 21 analysts have revised earnings estimates upward, with multiple firms raising price targets following strong Q4 results.
Atlassian hit a 52-week high of $198.60 this week, with the stock trading around $198.77. That puts it up roughly 165% over the past six months.
The run comes on the back of strong fiscal fourth-quarter results. Atlassian posted adjusted EPS of $1.87, well above the $1.50 consensus. Revenue came in at $1.77 billion, beating expectations of $1.66 billion and marking 28% year-over-year growth.
Cloud revenue was a standout, accelerating 31% to $1.21 billion. Remaining performance obligations surged 44% to $4.8 billion, pointing to solid future revenue commitments.
The company also recorded its first GAAP operating profit in over two years, posting a 12% margin. That’s a milestone that got noticed on Wall Street.
Analyst Targets on the Move
Multiple firms moved their price targets higher following the results. BTIG kept its Buy rating and set a $230 target, citing Atlassian’s pricing power and AI monetization potential. The firm named Atlassian its top pick in the sector.
Cantor Fitzgerald also has a $220 target, pointing to confidence in cloud growth and AI-driven opportunities. Bank of America upgraded the stock to Buy and raised its target to $175. FBN Securities moved its target to $170, up from $110, while maintaining an Outperform rating.
TD Cowen adjusted its target to $145 and flagged the CEO’s $250 million buyback plan as part of the broader picture.
In total, 21 analysts have revised their earnings estimates upward ahead of the next reporting period.
What’s Coming Next
BTIG highlighted a few specific drivers in a note following a meeting with Atlassian management. The firm’s fiscal 2027 Cloud revenue growth guidance sits 350 basis points above last year’s initial guidance.
The Collections feature, set to launch December 3, 2026, includes 10 times as many Rovo Credits as previous offerings. BTIG’s own analysis of Atlassian’s pricing calculator suggests customer spending could increase severalfold in many cases.
Atlassian counts roughly 85% of the Fortune 500 as customers, but those customers account for only 10% of revenue. Average annual spending sits around $1.5 million per enterprise customer, which analysts see as room for growth.
Customers using both Jira and Confluence who move to Team Anywhere Contracts typically see a mid-teens pricing uplift.
BTIG expects Rovo Credits to become a bigger revenue driver in fiscal 2028 rather than fiscal 2027. The firm estimates around 100 basis points of inorganic contribution from DX this year, with the rest driven by seat expansion and cross-sell activity.
InvestingPro’s Fair Value calculation currently puts the stock as slightly undervalued at these levels.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment