Atlassian Destroyed SaaSpocalypse (Rating Upgrade)

Atlassian surged 35% post-earnings, driven by 28% YoY revenue growth, which beat by the highest magnitude in 9 quarters and its first full year of GAAP profitability. TEAM’s cloud revenue accelerated to 31% YoY, with enterprise deals and AI agent Rovo adoption fueling ARR growth and platform expansion. Management guides FY27 revenue growth to 13% YoY, with Cloud at 25.5% and the Data Center segment declining due to migration and EOL impacts. I upgrade TEAM to 'buy,' but recommend waiting for a pullback as valuation remains attractive at 18x forward non-GAAP PE and 22% upside to consensus PT.

Atlassian ( TEAM ) reported its Q4 FY26 earnings at the end of last week, and the stock got re-rated once again.