Why Atlassian Stock Just Popped

By Rich Smith – Feb 24, 2026 at 12:21PM ESTKey PointsJefferies analyst Brent Thill thinks it's time to buy Atlassian stock.AI could be more of an opportunity than a threat for Atlassian.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: TEAMAtlassianMarket Cap$18BToday's Changeangle-down(3.69%) $2.54Current Price$71.35Price as of February 24, 2026 at 1:32 PM ETThe Great Software Selloff of 2026 may have just ended.Is the Great Software Stock Slump of 2026 finally over? IT specialist Atlassian (TEAM +3.69%) stock has been on a pronounced downturn, losing 73% of its value over the last 52 weeks. This morning, however, shares of Atlassian bounced back brightly, surging 4.1% through 12:05 p.m. ET. You can thank the friendly analysts at Jefferies for that. Image source: Getty Images. What Jefferies says about Atlassian Analyst Brent Thill led a team of Jefferies analysts into the software sector wreckage this morning, "taking a fresh look at current levels considering both our new AI Risk Matrix and idiosyncratic fundamentals/catalysts," as StreetInsider.com reports. And what did Thill discover? "Software will survive," because "business IP is embedded inside," is the analyst's conclusion. And one of the biggest winners from a rebound in software stocks will be Atlassian. Although Thill admits that artificial intelligence is increasingly being used to generate software these days, he argues that "more AI-generated code = more need for IT collab," and that Atlassian is perfectly positioned to benefit from this. As the "fastest growing app name" that Jefferies covers, the analyst sees Atlassian growing 20% annually once things start shaking out in the IT sector -- and declares the stock a buy. ExpandNASDAQ: TEAMAtlassianToday's Change(3.69%) $2.54Current Price$71.35Key Data PointsMarket Cap$18BDay's Range$67.85 - $73.2052wk Range$67.85 - $295.91Volume7.3MAvg Vol4.5MGross Margin83.80% Is Atlassian stock a buy? It's hard to argue with the numbers. Priced at $18.9 billion in market capitalization, and with more cash than debt on its balance sheet, Atlassian generated just under $1.3 billion in positive free cash flow over the last 12 months. This works out to a price-to-free cash flow ratio of roughly 14.5x -- on a stock that most analysts predict will grow its profits better than 20% annually over the next five years. Unless AI eats software entirely, that's a steal of a deal, folks. And it makes Atlassian stock a "buy."Read NextFeb 12, 2026 •By Anthony Di PizioThis Super Software Stock Is the Cheapest It Has Ever Been. Time to Swoop in and Buy?Jan 26, 2026 •By Adam Levy1 Stock Down 21% So Far in 2026 to Buy Before It Rebounds 76%, According to Wall Street AnalystsOct 11, 2025 •By Adam Levy1 Growth Stock to Buy Before It Soars As Much As 118%, According to Wall StreetSep 27, 2025 •By Anthony Di Pizio1 Artificial Intelligence (AI) Stock to Buy Before It Soars By 50%, According to Wall StreetSep 9, 2025 •By Keith SpeightsMeet the Large-Cap AI Stock That Wall Street Is Most Bullish About Right Now (Hint: It's Not Nvidia or Palantir)Sep 6, 2025 •By Parkev Tatevosian, CFAAtlassian Stock Investors Need to Watch This!About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedAtlassianNASDAQ: TEAM$71.35 (+3.69%) $+2.54*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.