Atlassian Corporation (TEAM): A Bull Case Theory 

We came across a bullish thesis on Atlassian Corporation on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on TEAM. Atlassian Corporation’s share was trading at $118.18 as of January 30th. TEAM’s forward P/E was 24.69 according to Yahoo Finance.

Atlassian Corporation provides a collaboration software that enables organizations to connect all teams through a system of work that unlocks productivity at scale worldwide. TEAM began FY2026 with robust growth and improving forward visibility, although revenue recognition is being reshaped by ongoing migration dynamics. Q1 revenue grew 21% YoY to $1.4 billion, with cloud revenue rising 26% to $998 million, representing nearly three-quarters of total revenue. Remaining performance obligations (RPO) increased 42% YoY to $3.3 billion, reflecting strong enterprise execution and elevated migration activity.

AI adoption is accelerating rapidly, with 3.5 million monthly active users of AI features—up over 50% sequentially—and AI interactions rising approximately 150% over six months, alongside a threefold increase in tokens processed quarter-over-quarter. Atlassian’s CRM capabilities are adjacent rather than core, with competitive advantage rooted in workflow orchestration and service coordination rather than traditional sales automation. Jira and Jira Service Management serve as central rails for cross-team execution, enabling consolidation of point tools through bundling and integrations.

By becoming the work system of record for engineering, IT, and increasingly business teams, Atlassian raises switching costs without direct feature competition against legacy CRM suites. Agentic AI reinforces operational coordination, routing work across technical ecosystems and third-party vendors, with customer data indicating AI-enabled teams expand Jira seats roughly 5% faster and manage over 20% more projects than peers. Timing remains the key challenge, as accelerated Data Center migrations shift revenue into ratable cloud recognition, moderating near-term reported growth despite stronger bookings.

While cloud revenue guidance was raised to 22.5% growth—driven entirely by migration—organic growth was reduced by 50 basis points, and Marketplace take rates face pressure due to lower cloud app margins. Execution of the multi-year migration runway through the March 2029 Data Center end-of-life is critical, creating both near-term volatility and significant long-term upside for Atlassian’s cloud-led expansion.

Previously, we covered a bullish thesis on Atlassian Corporation (TEAM) by Deep Value Returns in May 2025, which highlighted the company’s resilient free cash flow engine, disciplined expense management, and long-term growth ambitions targeting a 20% CAGR through fiscal 2027. TEAM’s stock price has depreciated by approximately 43.15% since our coverage due to broader market volatility and near-term growth timing. Sergey shares a similar thesis but emphasizes FY2026 cloud migration dynamics, AI adoption, and workflow orchestration as key drivers of long-term upside.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.