Atlassian Corporation (TEAM) Receives Lower Price Target from Bernstein Following Q4 Earnings Release

Bernstein reduced its price target on Atlassian Corporation (TEAM) from $310 to $296, maintaining an 'Outperform' rating. The company reported strong total revenue and cloud revenue, surpassing expectations by 2.2% and 2.7%, respectively. Atlassian expects 18% growth in FY26, exceeding Bernstein's 21% growth expectation. The company's collaboration software, including Jira and Confluence, helps teams connect and enhance productivity globally.

On August 8, 2025, Bernstein Research lowered its price target on Atlassian Corporation (TEAM) from $310 to $296, while maintaining an 'Outperform' rating. The decision comes following Atlassian's strong Q4 earnings report, which saw total revenue and cloud revenue surpass expectations by 2.2% and 2.7%, respectively [2].

Atlassian Corporation, a global software company specializing in AI-powered collaborative tools, reported a 19.12% year-over-year (YoY) growth in total revenue. The company's cloud revenue grew by 2.7% YoY, driven by improvements in its enterprise sales motion and platform deal momentum. Bernstein expects Atlassian to grow at a rate of 18% in FY26, slightly below its own three-year 20% compound annual growth rate (CAGR) goal [2].

The company's collaboration software, including Jira and Confluence, has been instrumental in helping teams connect, share knowledge, and enhance productivity globally. Atlassian's strategic cloud and AI partnerships, such as its alliance with Google Cloud, have positioned it as a leader in the enterprise software market [3].

Atlassian's partnership with Google Cloud includes integrating AI capabilities into its ecosystem, such as the AI agent Rovo, which enables cross-platform automation. The dual-cloud strategy with AWS and Google Cloud ensures redundancy, compliance flexibility, and vendor lock-in avoidance, providing a competitive edge in the enterprise software market [3].

Despite the recent price target reduction, Bernstein's 'Outperform' rating reflects confidence in Atlassian's long-term growth prospects. The company's financial performance and strategic partnerships position it as a high-conviction play on AI-driven enterprise transformation.

References:
[1] https://finance.yahoo.com/news/truist-financial-lowers-pt-atlassian-042201665.html
[2] https://finance.yahoo.com/news/bernstein-reduces-pt-atlassian-corporation-072927940.html
[3] https://www.ainvest.com/news/atlassian-strategic-cloud-ai-alliance-google-cloud-catalyst-enterprise-software-supremacy-2508/