Is Atlassian Corp. (TEAM) One of the Best Enterprise Software Stocks to Buy Now?

We recently published a list of 12 Best Enterprise Software Stocks to Buy Now. In this article, we are going to take a look at where Atlassian Corporation (NASDAQ:TEAM) stands against other best enterprise software stocks to buy now.

In 2024, the global enterprise market size was estimated at $263.79 billion, according to Grand View Research. It’s expected to now grow at a CAGR of 12.1% from 2025 to 2030, due to the increasing demand for automated and integrated solutions. Enterprise software becomes more desirable as organizations seek reduced reliance on HR to eliminate manual errors and automate routine tasks. Therefore, ERP (enterprise resource planning), CRM (customer relationship management), and data analytics software are becoming increasingly popular.

Enterprise software is actively transforming with the integration of AI technologies, which changes how it’s designed, deployed, and utilized. According to Endava, GenAI is driving this transformation by incorporating creative and analytical capabilities into enterprise applications. This enables software to undergo intelligent tasks like generating reports, creating personalized training materials, and writing codes. AI not only automates manual jobs but also allows hyper-personalization of customer-facing enterprise software. This allows platforms like CRM and e-commerce to deliver targeted content and recommendations, which leads to higher customer satisfaction and improved sales. This is fueled by adaptive AI-enhanced enterprise software that learns from vast datasets to provide real-time and individualized interactions.

AI-driven automation is also becoming more popular in core business processes. ERP and workflow management systems are automating complex tasks and reducing manual intervention to improve overall efficiency. Enterprises are streamlining operations and making data-driven solutions through the integration of now-standard features like process mining, intelligent document processing, and predictive analytics. Agentic AI is further pushing enterprise software towards greater autonomy. These are AI systems that act like human agents and autonomously perceive, reason, and analyze data to achieve certain goals. As enterprise software continues to integrate advanced AI capabilities in its regular applications, the technology becomes more proactive and intelligent.

Our Methodology

We sifted through ETFs and financial media reports to compile a list of the top enterprise software stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Atlassian Corporation (NASDAQ:TEAM)

Number of Hedge Fund Holders: 75

Atlassian Corporation (NASDAQ:TEAM) designs, develops, and licenses various software products worldwide. Its product portfolio includes Jira, which includes a project management system. It offers Confluence, which is a connected workspace. It also has Loom, which is a video communication tool; and Trello, which captures and adds structure to fluid and fast-forming work.

On March 20, Stephens initiated coverage of the company with an Equal Weight rating and a $255 price target. This was due to the company’s broad TAM and database for team organization which is essential for AI optimization. The company’s enterprise software segment is focused on its cloud-based platform and AI-driven tools. In FQ2 2025, the company made over $5 billion in annual run-rate revenue while the subscription revenue grew by 30% year-over-year.

Atlassian Corp. (NASDAQ:TEAM) is serving enterprise customers through AI innovation. Over 1 million monthly active users utilize the Atlassian Intelligence features. This led to a 25x year-over-year increase in AI interactions. The company’s AI capabilities fuel the adoption of premium and enterprise editions due to improved automation and analytics. In FQ2, the sales of higher-value SKUs were up 40%. It secured a record number of deals in the quarter which exceeded $1 million in annual contract value.

Hardman Johnston Global Equity Strategy stated the following regarding Atlassian Corporation’s (NASDAQ:TEAM) performance in its Q4 2024 investor letter:

“The top individual contributors to relative performance during the quarter were Atlassian Corporation (NASDAQ:TEAM), Standard Chartered, and Howmet Aerospace. Shares of Atlassian recovered sharply in the fourth quarter, driven by strong outperformance in Cloud and Data Center revenue growth and operating margins exceeding guidance by 360 bps. Paid seat expansion and cloud migrations led the earnings beat at the collaborative software maker, as management indicated that the macroeconomic environment has remained stable sequentially. Atlassian demonstrated a strong pace of innovation in the quarter, rolling out three new Premium versions of existing products, including Guard, Product Discovery, and Compass, plus two new out-of-the-box AI agents in Autodev and Autoreview to enhance engineering workflow efficiency. Additionally, Atlassian appointed its new CRO, Brian Duffy, whose background in the cloud division at SAP serves as a potential catalyst to scaling Atlassian’s enterprise go-to-market sales approach.”

Overall, TEAM ranks 7th on our list of best enterprise software stocks to buy now. While we acknowledge the growth potential of TEAM, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TEAM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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