Update shared on08 Oct 2025
Fair value Decreased 2.79%Analysts have revised their price target for Atlassian downward from $256.66 to $249.51. This reflects slightly lower fair value estimates and ongoing evaluation of revenue growth and profit margin expectations.
What's in the News
- Atlassian completed a share repurchase of 1,578,484 shares, representing 0.6% of outstanding shares, for $328.76 million under its buyback program announced in October 2024 (Key Developments).
- Between April 1 and April 30, 2025, the company repurchased 295,516 shares for $60.62 million, finalizing that tranche of its February 2023 buyback plan (Key Developments).
- The company issued earnings guidance for the first quarter ending September 30, 2025, expecting total revenue between $1,395 million and $1,403 million. The company projected annual revenue growth of approximately 18% for the fiscal year ending June 30, 2026 (Key Developments).
- Atlassian announced a multi-year partnership with Google Cloud to enhance cloud transformation and deliver advanced AI capabilities. This partnership will enable deeper integration between Atlassian apps and Google Cloud services (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Decreased from $256.66 to $249.51, reflecting a slightly lower assessment of fair value.
- Discount Rate: Edged down marginally from 8.04% to 8.02%, indicating a minor adjustment in risk evaluation.
- Revenue Growth: Increased slightly from 18.74% to 18.87%, which suggests a modestly more optimistic outlook for top-line expansion.
- Net Profit Margin: Declined minimally from 3.55% to 3.54%, showing a very small downward revision of profit expectations.
- Future P/E: Lowered from 279.67x to 271.75x. This points to marginally reduced forward-looking valuation multiples.
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