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Investing.com - Truist Securities lowered its price target on Atlassian Corporation (NASDAQ:TEAM) to $210 from $230 while maintaining a Buy rating following the company’s first-quarter fiscal 2026 results. The stock currently trades at $165.71, with analyst targets ranging from $175 to $480, according to InvestingPro data.
The software company delivered better-than-expected top and bottom-line results in the quarter, driven by cloud migrations, seat count growth, and upsell performance that exceeded analyst expectations. InvestingPro data shows Atlassian maintains impressive gross profit margins of 82.84%, though the company is not yet profitable over the last twelve months.
Atlassian management raised its fiscal year revenue outlook, primarily due to revenue recognition from the recently announced Data Center end-of-life (EOL) program. The company has launched its Ascend program to facilitate customer migrations. Revenue growth reached 19.66% in the last twelve months, with analysts expecting continued growth.
With the Data Center EOL announcement, Atlassian increased its migration impact projection from mid-single-digits to mid-to-high single-digits, suggesting an accelerating transition of customers to cloud offerings.
The company also reported positive momentum in artificial intelligence usage across its platform and strength in its enterprise go-to-market efforts as it enters the Data Center end-of-life phase.
In other recent news, Atlassian Corporation reported impressive first-quarter earnings for fiscal year 2026, with earnings per share reaching $1.04, surpassing the forecasted $0.84. The company’s revenue also exceeded expectations, totaling $1.43 billion against an anticipated $1.4 billion. Piper Sandler reiterated its Overweight rating for Atlassian, maintaining a price target of $300, citing a strong start to the fiscal year and notable cloud growth. Goldman Sachs also reiterated a Buy rating with a $260 price target, highlighting modest beat-and-raise results partly due to the Data Center End-of-Life transition. Mizuho raised its price target to $245, acknowledging Atlassian’s 21% year-over-year revenue growth, surpassing the expected 18%. Guggenheim maintained its Buy rating and a $225 price target, noting Atlassian’s Cloud growth of 26% in the quarter, which exceeded investor expectations. The growth was driven by paid seat expansions and Data Center migrations. These developments underscore Atlassian’s robust performance and strategic advancements in its cloud offerings.
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