Atlassian Corporation TEAM is seeing growing customer interest in its Teamwork Graph as businesses look to use AI across more workflows. The Teamwork Graph connects data from Atlassian applications and other sources to provide context for AI tools. The company says the graph now spans more than 200 billion objects and connections, giving Atlassian a large base of enterprise work data to support its AI strategy.
Atlassian believes the Teamwork Graph can improve the quality and cost of AI responses. Agents using the graph can deliver up to 44% more accurate answers while using 48% fewer tokens. Here, lower token usage can help reduce AI costs, while better answers can improve the usefulness of AI tools. This value is already showing up in customer discussions, with AI and the Teamwork Graph now among the top two reasons customers cite for upgrading to the cloud and adopting the Teamwork Collection.
The Teamwork Graph is also supporting Atlassian's AI monetization efforts. The Teamwork Collection is becoming an important way for customers to adopt AI features, including Rovo. Atlassian said customers are upgrading to get more Rovo credits, which is helping drive higher average revenue per user. Teamwork Collection customers also have four to five times more paid seats per instance than stand-alone Jira or Confluence customers. This suggests that broader adoption of the graph and AI could lead to more seats, higher ARPU and greater cross-sell opportunities.
Atlassian estimates about $14 billion of opportunity within its existing customer base without changing products or pricing. If Atlassian can keep improving Teamwork Graph and use it to drive wider AI adoption, customer upgrades and seat growth, it could support the company's next phase of expansion. The Zacks Consensus Estimate for TEAM's fiscal 2027 and 2028 revenues indicates year-over-year growth of 13% and 14.8%, respectively.
Atlassian Faces Stiff Competition
Atlassian faces stiff competition from other key players in the cloud software industry such as Salesforce CRM and ServiceNow NOW.
Salesforce competes with Atlassian through offerings such as Agentforce, Data Cloud and Slack, which together create a unified ecosystem that connects customer data with integrated AI across systems, apps and devices. In the second quarter of fiscal 2027, Agentforce’s ARR exceeded $1.5 billion, up 240% year over year. Salesforce expects this momentum to continue in fiscal 2027 on the back of robust customer demand for its agentic offerings.
ServiceNow is seeing strong demand for its Agentic AI products as enterprises look to automate more work and improve productivity. The company is expanding AI across IT, customer service, employee service and security. Management said customers now want AI that can complete tasks and deliver clear business value instead of simply assisting employees. This is helping drive adoption of the company's AI offerings. AI annual contract value (ACV) crossed $1 billion during the second quarter of 2026, and ServiceNow expects AI ACV to exceed $1.5 billion by the end of 2026.
TEAM’s Price Performance, Valuation & Estimates
TEAM shares have jumped 11% in the year-to-date period against the Zacks Internet - Software industry’s return of 0.5%.
TEAM YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Atlassian trades at a forward 12-month price-to-sales ratio of 5.96X compared with the industry’s 4.08X. TEAM has a Value Score of F.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM's fiscal 2027 earnings is pegged at $5.52 per share, unchanged over the past 30 days, indicating a year-over-year decline of 5.6%.
Image Source: Zacks Investment Research
TEAM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).