Atlassian Corporation (TEAM), the collaboration software company behind tools such as Jira and Confluence, climbed to a 52-week high of $198.60 this week, with the stock changing hands around $198.77 at the time of the milestone. Shares have gained roughly 165% over the past six months, a run that follows stronger-than-expected fiscal fourth-quarter results and a wave of price-target revisions from Wall Street analysts.

Strong Fiscal Fourth-Quarter Results

The rally comes on the back of Atlassian's fiscal fourth-quarter report, which exceeded expectations on both the top and bottom lines. The company posted adjusted earnings per share of $1.87, well above the $1.50 consensus estimate. Revenue reached $1.77 billion, topping forecasts of $1.66 billion and marking 28% year-over-year growth.

Cloud revenue was a standout, accelerating 31% year-over-year to $1.21 billion. Remaining performance obligations — contracted revenue not yet recognized — surged 44% to $4.8 billion, pointing to solid future revenue commitments.

The company also recorded its first GAAP operating profit in more than two years, posting a 12% operating margin — a milestone that drew attention on Wall Street, as GAAP figures reflect profitability under standard accounting rules rather than the adjusted measures behind the headline earnings beat.

Analyst Targets on the Move

Multiple firms raised their price targets following the report, with the revisions reflecting varying theses around cloud growth, pricing power, and AI monetization. BTIG maintained its Buy rating and set a $230 target, citing Atlassian's pricing power and AI monetization potential. The firm also named Atlassian its top pick in the sector.

Cantor Fitzgerald carries a $220 target, pointing to confidence in cloud growth and AI-driven opportunities. Bank of America upgraded the stock to Buy and lifted its target to $175. FBN Securities raised its target to $170 from $110 while maintaining an Outperform rating. TD Cowen adjusted its target to $145 and flagged the CEO's $250 million buyback plan as part of the broader picture.

In total, 21 analysts have revised their estimates upward ahead of the next reporting period.

What's Coming Next

BTIG highlighted several specific drivers in a note published after a meeting with Atlassian management. The firm's fiscal 2027 cloud revenue growth guidance sits 350 basis points above last year's initial guidance.

The Collections feature, set to launch on December 3, 2026, includes 10 times as many Rovo Credits — the consumption units tied to Atlassian's AI features — as previous offerings. BTIG's own analysis of Atlassian's pricing calculator suggests customer spending could increase severalfold in many cases.

Atlassian counts roughly 85% of the Fortune 500 as customers, yet those customers account for only 10% of revenue. Average annual spending sits at approximately $1.5 million per enterprise customer, a level analysts view as room for growth. Customers using both Jira and Confluence who move to Team Anywhere Contracts typically see a mid-teens pricing uplift.

BTIG expects Rovo Credits to become a bigger revenue driver in fiscal 2028 rather than fiscal 2027. The firm estimates around 100 basis points of inorganic contribution from the DX acquisition this year, with the remainder driven by seat expansion and cross-sell activity.

InvestingPro's Fair Value calculation currently puts the stock as slightly undervalued at these levels.

This article was originally published on CoinCentral.