TEAM

Atlassian Corporation maintains a Strong Buy rating, driven by robust cloud migration, AI adoption, and improving margins. Q4 revenue and non-GAAP EPS both beat expectations, with subscription revenue now 95% of the total and cloud revenue up 31% year-over-year. AI features, particularly Rovo, are fueling accelerated ARR growth and deeper enterprise penetration, with Rovo adopters growing ARR at over twice the rate of non-adopters.

AI agents could reshape the software industry, disrupting seat-based models while creating new revenue opportunities. Here's what lies ahead.

It's been just over a year since the iShares Software ETF peaked on September 22, 2025, and getting back to that level has been a work in progress. The ETF has since rallied 43%, bringing it back above both its 50- and 200-DMA, but it's still 9.4% below last September's peak.

Atlassian is initiated with a buy rating, driven by its strong competitive moat and AI-driven growth catalysts. TEAM's addressable market is $140 billion, growing at 14% annually, with current penetration below 5%, highlighting significant expansion potential. AI tools like Rovo and the teamwork graph are accelerating adoption, with Rovo's assisted actions up 50% QoQ and 5M+ monthly active users.

Enterprise software stocks are rising in Wednesday morning trading while the broader large-cap technology group falls. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) is up 1%.

TEAM Anywhere/SAN FRANCISCO--(BUSINESS WIRE)--Atlassian Corporation (NASDAQ: TEAM), a leading provider of AI-powered collaboration and team productivity software, today announced accelerated timelines for Impact Level 5 (IL5) authorization and plans for an air-gapped cloud deployment. Accelerated IL5 Timelines Atlassian is pulling forward its IL5 submission in direct response to demand from public sector customers. The company will now submit for IL5 authorization in July 2028, six months ahead.

TEAM's cloud growth, cross-sell gains and agentic automation are driving momentum, while subscription ARR growth is expected to moderate.

Early in 2026, markets saw software stocks as among the biggest losers from AI adoption. The advent of “vibe coding" largely drove this, as it significantly increased software development productivity.

TEAM's AI adoption, cloud momentum and lower valuation give it an edge over NOW despite both benefiting from enterprise AI demand.

Atlassian NASDAQ: TEAM CFO James Chuong told investors at Citi's TMT conference that artificial intelligence is becoming a tailwind for the company, citing increased adoption of its Rovo AI capabilities, expanding cloud usage and demand for its bundled product collections.