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Atlassian's AI Momentum Builds: Is Rovo the Next Growth Pillar?
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Key Takeaways
Atlassian says Rovo users grow ARR at roughly twice the rate of non-Rovo customers.
Atlassian's AI credit usage is rising more than 20% month over month, boosting adoption.
Atlassian expanded Rovo and launched Jira Agents at Team '26 to automate workflows.
Atlassian Corporation’s (TEAM - Free Report) AI momentum continues to build, with Rovo emerging as a potential new growth pillar that is driving higher customer spending, stronger cloud adoption and deeper platform engagement. The company noted that customers using Rovo are growing their annual recurring revenue (ARR) at roughly twice the rate of non-Rovo customers, while AI credit usage continues to increase more than 20% month over month. This growing adoption is encouraging customers to upgrade to Teamwork Collection, Atlassian's primary AI monetization offering, which delivers higher AI usage and greater agent deployment across organizations.
AI is also strengthening Atlassian's competitive positioning through its Teamwork Graph, which connects workflows, knowledge, people and code to provide richer context for AI-powered decision-making. This differentiation is helping customers consolidate more work onto the Atlassian platform, supporting seat expansion and cross-selling opportunities. The impact is particularly evident in Service Collection, which recently surpassed $1 billion in ARR and is growing more than 30% year over year. AI-enabled customers are resolving issues faster and increasing automation, reinforcing the platform's value proposition.
Recent innovations unveiled at Team '26 further strengthen the growth story. Atlassian introduced Agents in Jira, expanded Rovo's capabilities through Code Intelligence and made Rovo Service generally available, enabling AI agents to execute workflows rather than simply provide recommendations. As customers increasingly integrate AI into their daily operations, Rovo has the potential to become a more meaningful contributor to Atlassian's long-term growth. The Zacks Consensus Estimate projects fiscal 2026 revenue growth of 23.56%, supporting this view.
How TEAM's AI Momentum Compares With Rivals
Microsoft (MSFT - Free Report) is one of Atlassian’s strongest AI competitors, combining AI applications, enterprise data, collaboration tools and cloud infrastructure in a single ecosystem. MSFT has scaled Microsoft 365 Copilot to over 20 million paid seats and built a large agent ecosystem through Copilot Studio, Foundry, Fabric and Agent 365. While MSFT benefits from deep integration across Microsoft 365, Teams, Outlook, SharePoint and Azure, Atlassian’s Rovo offers a more open, vendor-neutral approach focused on knowledge discovery and workflow orchestration.
Salesforce (CRM - Free Report) is rapidly expanding its enterprise AI presence through Agentforce and its broader Agentic CRM vision. Salesforce combines AI, data and automation across Customer 360, Slack, Data Cloud, MuleSoft, Tableau and Informatica to support customer-facing workflows. In contrast, Atlassian’s Rovo focuses on internal collaboration and knowledge management. With Agentforce ARR exceeding $1 billion, CRM remains a formidable challenger in the race to monetize enterprise AI.
TEAM’s Price Performance, Valuation & Estimates
Shares of Atlassian have declined 32.8% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 23.5% and the Internet – Software industry’s fall of 6.3%.
TEAM’s Price Performance
Image Source: Zacks Investment Research
TEAM has a Value Score of F. It is currently trading at a Price/Sales ratio of 3.8X compared to the sector’s 7.02X.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM’s fiscal 2026 earnings is pegged at $5.48 per share, up 2.2% over the past 30 days, indicating a 48.91% increase from the previous year.
View the Zacks #1 Rank List
Image: Bigstock
Atlassian's AI Momentum Builds: Is Rovo the Next Growth Pillar?
Key Takeaways
Atlassian Corporation’s (TEAM - Free Report) AI momentum continues to build, with Rovo emerging as a potential new growth pillar that is driving higher customer spending, stronger cloud adoption and deeper platform engagement. The company noted that customers using Rovo are growing their annual recurring revenue (ARR) at roughly twice the rate of non-Rovo customers, while AI credit usage continues to increase more than 20% month over month. This growing adoption is encouraging customers to upgrade to Teamwork Collection, Atlassian's primary AI monetization offering, which delivers higher AI usage and greater agent deployment across organizations.
AI is also strengthening Atlassian's competitive positioning through its Teamwork Graph, which connects workflows, knowledge, people and code to provide richer context for AI-powered decision-making. This differentiation is helping customers consolidate more work onto the Atlassian platform, supporting seat expansion and cross-selling opportunities. The impact is particularly evident in Service Collection, which recently surpassed $1 billion in ARR and is growing more than 30% year over year. AI-enabled customers are resolving issues faster and increasing automation, reinforcing the platform's value proposition.
Recent innovations unveiled at Team '26 further strengthen the growth story. Atlassian introduced Agents in Jira, expanded Rovo's capabilities through Code Intelligence and made Rovo Service generally available, enabling AI agents to execute workflows rather than simply provide recommendations. As customers increasingly integrate AI into their daily operations, Rovo has the potential to become a more meaningful contributor to Atlassian's long-term growth. The Zacks Consensus Estimate projects fiscal 2026 revenue growth of 23.56%, supporting this view.
How TEAM's AI Momentum Compares With Rivals
Microsoft (MSFT - Free Report) is one of Atlassian’s strongest AI competitors, combining AI applications, enterprise data, collaboration tools and cloud infrastructure in a single ecosystem. MSFT has scaled Microsoft 365 Copilot to over 20 million paid seats and built a large agent ecosystem through Copilot Studio, Foundry, Fabric and Agent 365. While MSFT benefits from deep integration across Microsoft 365, Teams, Outlook, SharePoint and Azure, Atlassian’s Rovo offers a more open, vendor-neutral approach focused on knowledge discovery and workflow orchestration.
Salesforce (CRM - Free Report) is rapidly expanding its enterprise AI presence through Agentforce and its broader Agentic CRM vision. Salesforce combines AI, data and automation across Customer 360, Slack, Data Cloud, MuleSoft, Tableau and Informatica to support customer-facing workflows. In contrast, Atlassian’s Rovo focuses on internal collaboration and knowledge management. With Agentforce ARR exceeding $1 billion, CRM remains a formidable challenger in the race to monetize enterprise AI.
TEAM’s Price Performance, Valuation & Estimates
Shares of Atlassian have declined 32.8% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 23.5% and the Internet – Software industry’s fall of 6.3%.
TEAM’s Price Performance
Image Source: Zacks Investment Research
TEAM has a Value Score of F. It is currently trading at a Price/Sales ratio of 3.8X compared to the sector’s 7.02X.
TEAM’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TEAM’s fiscal 2026 earnings is pegged at $5.48 per share, up 2.2% over the past 30 days, indicating a 48.91% increase from the previous year.
Image Source: Zacks Investment Research
TEAM stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.