AI-Driven DX Acquisition and Strong Cloud Growth Might Change The Case For Investing In Atlassian (TEAM)

• In November 2025, Atlassian completed its acquisition of DX, an engineering intelligence firm specializing in developer productivity and AI-based insights, and reported fiscal first-quarter results that exceeded expectations, driven by robust growth in cloud revenue and products like Jira and Confluence.
• This combination of accelerating AI innovation and strong financial performance reinforces Atlassian's leadership in cloud-based collaboration tools for over 300,000 organizations worldwide.
• We'll explore how the expanded AI capabilities from the DX acquisition may influence Atlassian's investment narrative and growth outlook.

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Atlassian Investment Narrative Recap

Atlassian shareholders are generally betting on the company's ability to drive long-term revenue growth through continued enterprise cloud migration, expanding addressable markets, and differentiated AI-powered features. While recent announcements like the acquisition of DX and strong earnings reinforce Atlassian's technological leadership, they do not yet materially resolve the key risk of cloud migration delays among the company’s largest and most complex customers, which could impact near-term growth and free cash flow. The latest push into AI-powered collaboration and enterprise features supports the core growth catalysts, but the challenge of converting these innovations into sustained margin expansion remains central to the story.

Read the full narrative on Atlassian (it's free!)

Atlassian's narrative projects $8.7 billion in revenue and $310.2 million in earnings by 2028. This requires 18.7% yearly revenue growth and an increase of $567 million in earnings from the current level of -$256.7 million.

Uncover how Atlassian's forecasts yield a $245.23 fair value, a 67% upside to its current price.

Exploring Other Perspectives

Six individual fair value estimates from the Simply Wall St Community put Atlassian’s worth between US$204.74 and US$250.31 per share. The ongoing need for successful cloud migration remains critical to future growth, yet investors should also be aware that...

Explore 6 other fair value estimates on Atlassian - why the stock might be worth as much as 71% more than the current price!

Build Your Own Atlassian Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Atlassian research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Atlassian research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Atlassian's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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