Record Revenue vs. AI Market Skepticism

Atlassian share prices have fallen 39% year-to-year, to $86.99 and put the collaboration-software vendor, despite the attainment of new revenue heights, at approximately 80% below their 2021 peak.

Accelerating Growth In Trading Deals

In fiscal Q2 2026, Atlassian recorded $1.60 billion in revenues, which were 23% higher than in the previous year, the fastest quarterly growth in nearly two years, with a one-off accounting adjustment (data center) contributing to it. 

The annualized run-rate revenue had been increased to $6 billion plus over the first time, and the cloud segment had a net revenue retention rate of 120% throughout the third consecutive period. 

Atlassian Corporation is still confident in achieving at least 20% compounded annual revenue growth and expanding margins through fiscal 2027, with ongoing risk adjustments to short-term forecasts. It closed a record number of deals exceeding $1 million in Annual Contract Value (ACV), nearly doubling year on year.

Valuation at Lowest History Inside a Set of Caution in the Market

The current market valuation multiples have shrunk significantly: the Atlassian price-sales ratio decreased to about 4.3x, which is the lowest figure since it launched its business in the market in 2015, and significantly lower than the multiple in the twenties it enjoyed throughout the years. 

However, the market is skeptical about the future next-generation AI-coding technologies, such as the Claude Code introduced by Anthropic, having the potential to enable businesses to create internal replacements and put pressure on the profitability in the long term.

Long‑Term Investor Outlook

The risk-reward balance sheet is positive to investors with a three- to five-year horizon: an essential part of the product line, soaring growth in revenues, the expansion of the use of AI, and a valuation in multi-year lows. 

Among the critical determinants, the extent to which businesses will converge on the AI layer of Atlassian or custom internal tools will be important, as well as whether the degree to which the operating leverage increases with the scale of the cloud. 

In the event that Atlassian manages to maintain its role as a safe, adoptive productivity subsystem and cash in on AI in a broader way, the current depressed multiple can be a temporary trough and not the beginning of a structural decline.