Atlassian upgraded to strong buy after beating growth and margin expectations despite AI concerns

Atlassian (TEAM) has been upgraded to a strong buy following its impressive 32% year-over-year revenue growth and more than 8 percentage points expansion in non-GAAP operating margin, surpassing guidance and consensus estimates. Contrary to fears of AI reducing demand, management reports record competitive wins and plans to accelerate GAAP profitability by fiscal year 2027. Trading at just 3 times next year's sales, Atlassian appears undervalued given its strong growth and margin potential, making it an attractive investment opportunity.