Atlassian (TEAM) offers collaboration tools like Jira, Confluence, Trello, and Loom, used by over 300,000 customers, including 80% of Fortune 500 companies. TEAM stock is down 60% from its high, trading at $131 per share, underperforming the Nasdaq Composite. Despite this, TEAM reported Q1 revenue of $1.43 billion, up 21% YOY, with strong cloud growth.
Atlassian’s non-GAAP operating margin is at 23% with an 82% gross margin. Q2 revenue guidance is $1.535 billion to $1.543 billion, exceeding estimates. The company aims for 20.8% revenue growth in fiscal 2026 and introduces a $2.5 billion share buyback program. Analysts see potential in TEAM stock, with a consensus “Strong Buy” rating and a $226.80 price target.
Morgan Stanley views the 25% YTD drop in TEAM stock as a buying opportunity, citing AI as a growth driver. Despite concerns about AI impacting Atlassian’s model, the company’s diverse products, enterprise momentum, and solid IT budgets support a positive outlook. Analysts expect over 22% revenue growth and a 26% operating margin in Q2.

Read more at Yahoo Finance: Down 25% in 2026, Morgan Stanley Says You Should Buy the Dip in This 1 Tech Stock