Atlassian (TEAM) Drops 11.6% After Announcing Google Cloud AI Partnership and Upbeat 2026 Outlook

• Atlassian reported its full-year 2025 results, showing revenue of US$5.22 billion, reduced net loss to US$256.69 million, issued upbeat 2026 guidance, and unveiled a multi-year partnership with Google Cloud focused on integrating AI capabilities and expanding cloud adoption.
• The collaboration with Google Cloud will enable Atlassian to bring its leading apps, advanced AI-powered workflows, and productivity tools to Google Cloud's infrastructure, deepening integration across both ecosystems and potentially broadening its global reach.
• We'll examine how Atlassian's Google Cloud partnership and strong guidance could reshape its investment narrative and growth prospects.

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Atlassian Investment Narrative Recap

To be a shareholder in Atlassian, you need conviction in its ability to drive sustained cloud adoption and monetize a broadening set of AI-powered collaboration tools. The latest results, with strong revenue growth and upbeat 2026 guidance, reinforce this vision, while the company’s new partnership with Google Cloud could further fuel adoption, though the primary short-term catalyst remains the successful migration of complex enterprise customers to the cloud. Near-term, the biggest risk continues to be delays or challenges in these enterprise migrations, which could affect recurring revenue visibility.

Among the recent developments, the expanded partnership with Google Cloud stands out as most relevant. It aligns closely with Atlassian’s strategy to accelerate cloud transformation and embed advanced AI features in its products, creating deeper ecosystem integrations that could help attract larger enterprise customers, a crucial factor underpinning both cloud migration progress and engagement with AI-driven workflows.

But while new partnerships can strengthen long-term potential, investors should be aware that if complex customers hesitate to migrate to the cloud, …

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

Atlassian's outlook anticipates $8.7 billion in revenue and $272.3 million in earnings by 2028. This requires 18.7% annual revenue growth and a $529 million increase in earnings from the current loss of $-256.7 million.

Uncover how Atlassian's forecasts yield a $261.52 fair value, a 59% upside to its current price.

Exploring Other Perspectives

Fair value targets from three Simply Wall St Community members span US$204.74 to US$261.52, reflecting wide differences among individual investors. As cloud migration remains the key driver for future recurring revenue, explore multiple views to get the full picture.

Explore 3 other fair value estimates on Atlassian - why the stock might be worth just $204.74!

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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