Atlassian Corporation (TEAM) Enters Into Definitive Agreement to Acquire DX

Atlassian Corporation (NASDAQ:TEAM) is one of the Oversold Software Stocks to Buy Now. On September 18, Atlassian Corporation (NASDAQ:TEAM) announced that it entered into a definitive agreement to acquire DX. Together, both companies will empower enterprises to understand how their AI investments are supporting engineering teams to accelerate and improve work. The transaction is expected to close in Q2 2026, subject to customary closing conditions and required regulatory approvals.

Elsewhere, Atlassian Corporation (NASDAQ:TEAM) closed out FY 2025 delivering more than $5.2 billion of revenue, garnering over $1.4 billion in FCF, and reaching 2.3 million AI monthly active users. Atlassian Corporation (NASDAQ:TEAM) and Google Cloud announced an expanded strategic partnership to bring together former’s enterprise-grade, AI-powered teamwork platform with Google Cloud’s AI-optimized infrastructure. The partnership demonstrates a milestone in Atlassian Corporation (NASDAQ:TEAM)’s multi-cloud strategy to ramp up cloud transformation and deliver advanced AI solutions.

In Q1 2026, the company expects total revenue of between $1,395 million – $1,403 million. Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing and R&D. With the stock trading at an attractive valuation, we added modestly to our position.

While we acknowledge the potential of TEAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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