Atlassian's Q4 Revenue Grows 22% to $5.2B; Mizuho Cuts Price Target to $235 but Sees Multi-Year Growth Ahead

Mizuho analyst Greg Moskowitz lowered Atlassian's (TEAM) price target to $235, maintaining an Outperform rating. The company reported strong Q4 results, with total revenue growing 22% to over $5.2 billion. Management cited significant momentum in large deals and healthy cloud migration activity as primary drivers behind the growth. Mizuho believes the company's growth prospects are being underestimated.

Atlassian Corp. (TEAM) reported its fiscal 2025 Q4 earnings on August 7, 2025, with notable improvements in revenue growth and profitability. The company's total revenue grew by 22.8% to $1.38 billion, compared to $1.07 billion in Q4 FY24, driven primarily by subscription revenue which increased by 23% to $1.31 billion [1]. Despite the strong financial performance, shares fell 22.05% month-to-date, reflecting broader market sentiment rather than earnings disappointment [1].

The company's net loss narrowed significantly, decreasing by 87.9% to $23.9 million from $196.92 million in the prior year, indicating strong cost control and operational efficiency [1]. This marked turnaround suggests a positive trajectory in financial health.

CEO Mike Cannon-Brookes highlighted AI-driven innovations like Rovo and a $5.2 billion FY25 revenue milestone, while announcing a Google Cloud partnership for AI solutions. The company expects 18% FY26 revenue growth, with cloud revenue projected to rise 21% YoY and 83.5% GAAP gross margin [1]. However, no formal guidance was provided.

Following the earnings release, Mizuho analyst Greg Moskowitz lowered Atlassian's price target to $235, maintaining an Outperform rating. Moskowitz believes the company's growth prospects are being underestimated, citing significant momentum in large deals and healthy cloud migration activity as primary drivers behind the growth [2].

Analysts from Raymond James also lowered their price target to $250 from $300, maintaining an Outperform rating. They noted that Atlassian's cloud value proposition has "recently tripled," which should lead to better migration activity over the coming year [3]. The company's cloud revenue growth of 26% in Q4 FY25 surpassed its guidance of 23%, and total revenue increased by 22% exceeding consensus estimates by 2% [3].

Atlassian announced a strategic partnership with Google Cloud to enhance AI-driven productivity solutions. The company's products will run on Google Cloud and be integrated with Vertex AI and Gemini models, enabling customers to build AI agents and use cloud computing credits for Atlassian subscriptions [4]. This partnership is expected to drive further growth and innovation.

In summary, Atlassian's Q4 FY25 earnings demonstrated significant financial strength, with strong revenue growth and improved profitability. Despite a challenging market environment, the company's growth prospects remain promising, as evidenced by analyst ratings and strategic partnerships. Investors should closely monitor Atlassian's future performance and guidance to assess its long-term potential.

References:
[1] https://www.ainvest.com/news/atlassian-2025-q4-earnings-strong-performance-net-income-surges-122-2508/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/46997488/these-analysts-cut-their-forecasts-on-atlassian-after-q4-results
[3] https://www.constellationr.com/blog-news/insights/atlassian-outlines-partnership-google-cloud-strong-fiscal-q4
[4] https://in.investing.com/news/analyst-ratings/atlassian-stock-price-target-lowered-to-250-by-raymond-james-on-growth-outlook-93CH-4952982