Atlassian (TEAM) PT Lowered to $265 by Mizuho Despite Positive Software Sector Trends

Atlassian Corporation (NASDAQ:TEAM) is one of the best growth stocks to buy and hold for 3 years. On July 16, Mizuho adjusted the price target for Atlassian to $265, down from $290, while maintaining an Outperform rating on the shares. The revision followed the Q2 earnings preview for the software sector. Mizuho’s overall checks for the quarter were positive, noting healthy cybersecurity demand and strong AI adoption.

In FQ3 2025, the company reported total revenue of $1.4 billion for the quarter, driven by a 25% year-over-year growth in cloud revenue. Over 1.5 million monthly active users of AI across its platform show significant adoption of its AI capabilities. Furthermore, Atlassian received FedRAMP moderate authorization for its US federal government customers, expanding its cloud platform with the Atlassian Government Cloud.

However, it’s important to note that enterprise deals concluded later than expected in FQ3, which impacted cloud revenue growth for the quarter. The company is experiencing elongated deal cycles due to larger and more complex deals, which could affect future revenue timing.

Atlassian Corporation (NASDAQ:TEAM) designs, develops, licenses, and maintains various software products worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.