Atlassian to acquire DX for $1 billion to measure AI impact

SAN FRANCISCO/SALT LAKE CITY - Atlassian Corporation (NASDAQ:TEAM), a $45.19 billion market cap software giant with impressive gross profit margins of 82.84%, announced Thursday it has entered into a definitive agreement to acquire engineering intelligence company DX for approximately $1 billion in cash and restricted stock. According to InvestingPro data, Atlassian is currently trading near its Fair Value, with analysts maintaining a bullish outlook on the stock.

The acquisition aims to help enterprises measure the effectiveness of their artificial intelligence investments in engineering teams. By integrating DX into Atlassian’s suite of tools, the company plans to provide customers with data-driven insights into developer productivity and satisfaction. This strategic move comes as Atlassian maintains strong revenue growth of 19.66% over the last twelve months, despite current profitability challenges highlighted in InvestingPro’s comprehensive analysis.

"Using AI is easy, creating value is harder," said Mike Cannon-Brookes, Atlassian’s CEO and co-Founder in the press release. "By bringing DX into Atlassian’s System of Work, we’re helping engineering teams from some of the biggest enterprise companies move faster, more intentionally, and with greater impact."

DX, founded five years ago, specializes in measuring developer productivity through both qualitative feedback and quantitative metrics. The platform helps engineering leaders identify bottlenecks and areas for investment.

According to the announcement, the combined solution will provide visibility into AI adoption impact, developer experience, and productivity insights. Nearly all of DX’s current customers are already Atlassian users.

The transaction is expected to close in the second quarter of Atlassian’s fiscal year 2026, subject to regulatory approvals and customary closing conditions. Atlassian stated that the acquisition does not change its previously issued fiscal year 2027 non-GAAP operating margin target.

DX currently serves hundreds of companies including Dropbox, Block, Pinterest, and BNY Mellon. Atlassian has over 300,000 customers worldwide, including 80% of Fortune 500 companies.

The announcement comes as organizations increasingly deploy AI tools but struggle to measure their return on investment, particularly in engineering departments. While Atlassian’s net income is expected to grow this year, investors seeking deeper insights into the company’s financial health and growth prospects can access additional ProTips and detailed metrics through InvestingPro’s exclusive research report, which provides comprehensive analysis of over 1,400 US stocks.

In other recent news, Atlassian Corporation reported its Q4 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.98, compared to a forecast of $0.81. This represents a 20.99% surprise, highlighting a strong performance despite broader market volatility. Additionally, Atlassian announced a significant acquisition, agreeing to purchase The Browser Company of New York for $610 million in cash. This deal includes The Browser Company’s cash holdings and aims to expand Atlassian’s offerings.

In terms of analyst ratings, both Cantor Fitzgerald and William Blair maintained positive outlooks on Atlassian stock. Cantor Fitzgerald reiterated its Overweight rating, citing potential growth opportunities as Atlassian transitions Data Center customers to its cloud platform. William Blair also reiterated its Outperform rating, noting the stock trades at a slight discount compared to large-cap software peers. Furthermore, Raymond James maintained its Outperform rating following the acquisition news. Lastly, Atlassian appointed AI entrepreneur Jason Warner to its Board of Directors, effective October 1, 2025, as Heather Mirjahangir Fernandez retires from the board.

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