Exploring Atlassian Corporation Plc (TEAM) Investor Profile: Who’s Buying and Why?

You're looking at Atlassian Corporation Plc (TEAM) and wondering why the biggest money managers are still buying a stock that reported a GAAP net loss of $256.7 million in fiscal year 2025, even as its CEO sells shares under a 10b5-1 plan; that's a fair question. The answer lies in the deep institutional conviction-with over 94% of the stock held by firms like Vanguard Group Inc and BlackRock, Inc.-that the company's massive free cash flow (FCF) and cloud transition are what truly matter. Here's the quick math: Atlassian delivered over $5.2 billion in total revenue for FY25, a 20% jump, while generating a robust $1.4 billion in FCF, which is the real engine funding their aggressive push into AI and Enterprise Cloud. So, are the largest investors simply ignoring the negative profitability, or are they staking their claim on the future of enterprise team collaboration, betting that the 2.3 million AI monthly active users will eventually translate into massive non-GAAP operating income, which already hit $1,287.3 million in FY25? We're going to map out exactly who is buying, who is selling, and why this split view on profitability versus cash flow and growth is the core of the Atlassian investment thesis right now.

Who Invests in Atlassian Corporation Plc (TEAM) and Why?

You're looking at Atlassian Corporation Plc (TEAM) and trying to figure out who's driving the stock and why their money is flowing in. The direct takeaway is this: Atlassian is overwhelmingly an institutional play, with nearly all investors betting on its long-term dominance in enterprise software and its aggressive push into Artificial Intelligence (AI).

Key Investor Types: The Institutional Powerhouse

The ownership structure of Atlassian Corporation Plc is heavily skewed toward large financial entities. As of late 2025, institutional investors and hedge funds own a staggering percentage of the stock, often cited around 94.45% to 96.05% of the shares. This means the price action is defintely driven by the big players-pension funds, mutual funds, and asset managers-not primarily by individual retail investors.

The largest institutional holders are exactly who you'd expect, managing vast pools of capital for passive and active strategies. For example, Vanguard Group Inc. is a major holder, owning approximately 7.02% of the company's shares, valued at over $2.71 billion. BlackRock, Inc. is another top holder, reflecting its inclusion in major index funds. These firms are essentially buying the market, seeing Atlassian as a core component of the high-growth technology sector.

• Vanguard Group Inc.: Largest single shareholder.
• BlackRock, Inc.: Core holding in many ETFs and index funds.
• Baillie Gifford & Co: Known for long-term growth investing.

On the flip side, the founders, Mike Cannon-Brookes and Scott Farquhar, maintain majority voting control through their Class B shares, a common dual-class structure in tech that gives them strategic stability, but their Class A share ownership is small, around 0.32%.

Investment Motivations: Growth, Cloud, and AI Dominance

Investors are drawn to Atlassian Corporation Plc for a simple, three-part story: a sticky product ecosystem, a successful cloud migration, and a massive AI opportunity. They aren't buying for dividends-Atlassian doesn't pay one-but for pure, high-margin growth.

The company's financial results for the fiscal year 2025 validate this growth thesis. Total revenue for fiscal 2025 was over $5.2 billion, and management has set a target of 20%+ compounded annual revenue growth through fiscal year 2027. The subscription model is the heartbeat of this stability, accounting for around 94% of total revenue, with subscription revenue jumping 18.8% year-over-year to $1.27 billion in a recent quarter.

Here's the quick math: recurring revenue is predictable, and the cloud net revenue retention rate of 120% means existing cloud customers are spending more money each year. Plus, the AI platform, Rovo, is seeing explosive adoption, hitting 2.3 million AI Now users in Q4 fiscal 2025. That's a huge user base for a new feature.

This is a growth story, plain and simple.

Investment Strategies: Long-Term Growth vs. Momentum Trading

Given the high institutional ownership, the strategies employed are varied but mostly lean toward long-term growth. Atlassian Corporation Plc is a classic 'growth stock' for investors comfortable with short-term volatility but convinced of the long-term trend of digital transformation and AI-powered teamwork. They are willing to overlook short-term losses, like the reported net loss of $70.8 million in a recent quarter, because the company is strategically reinvesting heavily-spending $685 million on Research & Development (R&D) in that same quarter, a jump of nearly 19% year-over-year.

You also see momentum and short-term trading, particularly among hedge funds and quantitative investors. The stock's price has fluctuated, trading around $154.78 in November 2025, well off its 52-week high, which creates opportunities for investors who believe the market is underestimating its growth trajectory. Institutional investors bought 62.1 million shares and sold 42.1 million shares in the last quarter, a clear sign of active position management, or what we call high turnover.

For a deeper dive into the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of Atlassian Corporation Plc (TEAM).

Institutional Ownership and Major Shareholders of Atlassian Corporation Plc (TEAM)

If you're looking at Atlassian Corporation Plc (TEAM), the first thing to understand is that institutional money is firmly in control of the economic stake, even if the founders hold the voting power. Institutional investors-the big funds, pension plans, and endowments-own a staggering 94.45% of the stock, making their collective sentiment the primary driver of the Class A share price.

This high level of institutional ownership signals that the market views Atlassian Corporation Plc as a core holding in the enterprise software sector, but it also means the stock is prone to large movements when these major players rebalance their portfolios. It's defintely a stock where you need to track the 13F filings.

Top Institutional Investors and Their Massive Stakes

The top institutional investors in Atlassian Corporation Plc are the usual suspects, the index fund behemoths and a few well-known growth-focused managers. As of November 2025, The Vanguard Group, Inc., BlackRock, Inc., and Baillie Gifford & Co. lead the pack, collectively holding a significant chunk of the company's total outstanding shares.

These passive and active managers hold billions in value, underscoring the company's position in major market indices and growth portfolios. Here's the quick math on the top three as of November 2025:

• The Vanguard Group, Inc. holds 17.43 million shares, valued at approximately $2.75 billion.
• BlackRock, Inc. owns 10.73 million shares, a stake worth about $1.69 billion.
• Baillie Gifford & Co. controls 8.53 million shares, totaling roughly $1.34 billion.

You can see the rest of the top holders in this snapshot of the market's conviction:

Recent Ownership Shifts: Buying the Dip vs. Insider Sales

The recent trading activity shows a mixed picture: institutional investors are accumulating shares, while company insiders are selling. This divergence is a key signal you need to pay attention to. In the third quarter of 2025 alone, The Vanguard Group, Inc. increased its stake by 6.0%, adding over 1 million shares. Artisan Partners Limited Partnership was even more aggressive, growing its position by a massive 66.3% in the second quarter.

This institutional accumulation suggests confidence in the long-term vision, despite the stock's performance-the share price dropped from $249.99 in November 2024 to around $152.05 by November 2025. But, on the other side, insiders have been net sellers. The CEO, Michael Cannon-Brookes, sold 7,665 shares on November 19, 2025, for a total of $1,131,583.95. In the last 90 days, insiders have sold approximately 574,422 shares, totaling about $93.8 million in transactions.

The Role of Institutional Investors in Strategy and Stock Price

The impact of these large investors on Atlassian Corporation Plc's strategy is complex because of its dual-class share structure. The co-founders, Mike Cannon-Brookes and Scott Farquhar, hold Class B shares, which carry ten votes per share. This structure concentrates voting control with the founders, giving them enhanced influence over corporate decisions and making it nearly impossible for institutional investors to force a change in control or strategy through a simple shareholder vote.

So, while institutions own the economic majority, their primary role is one of capital validation and market stability, not direct governance. Their continued buying, like Vanguard's Q3 2025 move, acts as a massive vote of confidence in the company's strategic direction, particularly its focus on cloud migration and recent acquisitions like DX in November 2025 to boost AI and developer productivity. However, some large investors are wrestling with the fact that Atlassian Corporation Plc's seat-based software as a service (SaaS) model is facing pressure from the rapid advancements in large language models (LLMs) and artificial intelligence. The institutional accumulation is betting that management can successfully integrate AI to overcome these headwinds.

For a deeper dive into the company's financial health, you should check out Breaking Down Atlassian Corporation Plc (TEAM) Financial Health: Key Insights for Investors.

Key Investors and Their Impact on Atlassian Corporation Plc (TEAM)

You need to know who truly owns the future of Atlassian Corporation Plc (TEAM), and the answer is a mix of passive giants and the two founders who still hold the ultimate veto. Institutional investors own over 94% of the company's stock, providing liquidity and stability, but co-founders Mike Cannon-Brookes and Scott Farquhar maintain control through a dual-class share structure.

The largest shareholders are the indexing powerhouses, which is typical for a major technology stock. These firms primarily buy for inclusion in their broad-market or sector-specific funds, offering a steady, massive capital base. The stability they provide is defintely a quiet anchor for the stock.

• Vanguard Group Inc.: Holds the largest stake at 7.02%, equating to approximately 18.48 million shares as of September 2025.
• BlackRock, Inc.: A close second, holding around 4.02% or 10.58 million shares as of September 2025.
• Baillie Gifford & Co.: A notable active manager with a significant stake of around 8.12 million shares, representing 3.08% as of September 2025.

The Founder's Unshakeable Influence

While the institutional ownership of the publicly traded Class A shares is high, you must understand the dual-class share structure (keep the term in parentheses) that dictates corporate governance. Co-founders Mike Cannon-Brookes and Scott Farquhar retain the majority of the Class B shares, where each Class B share carries ten votes compared to one vote for a Class A share.

This structure means the founders have enhanced influence over major corporate decisions, like mergers, acquisitions, and board appointments, regardless of how much of the Class A stock the institutions own. This setup is common in tech and ensures long-term strategic continuity, allowing them to focus on a vision for growth, like the recent acquisition of DX, an engineering intelligence firm, for approximately $1 billion in cash and restricted stock.

For a detailed breakdown of the company's history and mission, you can check out Atlassian Corporation Plc (TEAM): History, Ownership, Mission, How It Works & Makes Money.

Active Funds and Recent Investor Moves

Beyond the passive giants, a number of active funds and hedge funds have made notable moves, signaling conviction in Atlassian Corporation Plc's cloud transition and AI strategy. These are the investors making aggressive bets, often looking for a faster return than the index funds.

For instance, in the second quarter of 2025, Candriam S.C.A. significantly boosted its stake, increasing its holdings by an impressive 265.5%, ending the quarter with 42,018 shares valued at approximately $8.53 million. Similarly, Two Sigma, a quantitative hedge fund, boosted its stake by over 183% as of August 2025, showing high-conviction buying in the face of stock volatility.

Here's the quick math on some recent institutional activity, based on Q2/Q3 2025 filings:

The Insider Selling Trend: What It Signals

To be fair, the consistent insider selling by the co-founders, executed under pre-arranged 10b5-1 trading plans, is a key data point you can't ignore. For example, in November 2025 alone, co-founder Scott Farquhar sold 7,665 shares of Class A Common Stock for a total transaction value of approximately $1.13 million. Co-founder Michael Cannon-Brookes also sold the same number of shares on multiple occasions in November 2025, with one sale totaling over $1.17 million.

What this estimate hides is that these are often pre-scheduled sales for diversification and liquidity, not necessarily a lack of faith in the company. Still, in the last 90 days of 2025, insiders net sold 574,422 shares versus only 4,497 shares bought, totaling approximately $93.48 million in net sales. This consistent selling pressure, even if planned, can weigh on stock sentiment, especially when the company is still expected to post a negative GAAP EPS of around -$0.34 for the current fiscal year, despite strong quarterly revenue of $1.43 billion.

Market Impact and Investor Sentiment

You're looking at Atlassian Corporation Plc (TEAM) right now and seeing a conflict: strong underlying business metrics but a stock price near its 52-week low. The investor sentiment is best described as a cautious split, leaning toward a Moderate Buy consensus from Wall Street analysts, but with a clear technical and insider pessimism that you can't ignore.

Institutional investors, the big money managers, still hold a commanding position, owning about 94.35% of the company's shares. This concentration suggests long-term conviction in the business model's sticky collaboration tools like Jira and Confluence. Still, the company's own executives have been net sellers, with insiders offloading approximately 574,422 shares, valued at roughly $93.5 million, over the three months leading up to November 2025. That's a strong signal, even if some of it is just routine tax withholding.

Here's the quick math on the current market view:

• Analyst Consensus: Moderate Buy.
• Average Price Target: $240.00.
• Current Price (Nov 2025): Near 52-week low of $144.27.

The core of the bullish argument is Atlassian Corporation Plc's successful transition to the cloud and its move into AI. You can read more about the foundation of their business in Atlassian Corporation Plc (TEAM): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Volatility

The stock market's response to Atlassian Corporation Plc's recent news has been volatile and, frankly, negative on price action, despite the company consistently beating quarterly estimates. For example, in the days leading up to mid-November 2025, the stock price fell by -7.72% over a 10-day period. This isn't a sign of confidence. The stock is currently trading near its 52-week low of $143.39, a steep drop from its 52-week high of $326.00.

A key moment was the Q3 fiscal year 2025 earnings report. The company reported adjusted earnings per share of $0.97, beating the consensus of $0.93, and revenue of $1.357 billion, slightly above the $1.35 billion estimate. But the stock still sank 15% in post-market trading because the midpoint of its Q4 guidance fell just shy of analyst estimates. This hyper-sensitive reaction tells you the market is defintely pricing in future growth expectations, not just today's results. It's a growth stock, so any hint of a slowdown is punished severely.

The market is clearly focused on the long-term profitability story, even with impressive top-line growth. The company closed fiscal year 2025 with strong total revenue of over $5.2 billion and generated $1.4 billion in free cash flow, which is excellent. But the GAAP net loss of -$256.69 million for FY25 still hangs over the stock, demanding a premium for its non-GAAP (Generally Accepted Accounting Principles) story.

Analyst Perspectives on Key Growth Drivers

The analyst community is largely bullish on the company's strategic direction, mapping the near-term price decline to a future opportunity driven by two major catalysts: Cloud migration and Artificial Intelligence (AI). The average price target of $240.00 implies a significant upside from the current trading price.

The most compelling bull case centers on the forced migration from Data Center to Cloud. Bernstein, for instance, raised its price target to a high of $304.00, explicitly citing the anticipated stronger contribution from the Data Center end-of-life (EOL) strategy. This migration is a clear revenue tailwind, as Cloud revenue already hit $3.4 billion in FY25.

However, you need to be realistic about the risks. Not all analysts are in lockstep. Jim Cramer, for one, stated he no longer recommends the stock, expressing concern that competitors could use AI to create products just as good as Atlassian Corporation Plc's, which is a real competitive threat in the software space.

Here is a snapshot of the core financial and strategic drivers analysts are focusing on for fiscal year 2025 and beyond:

The opportunity is clear: Atlassian Corporation Plc has a dominant market position and is executing its Cloud and AI strategy well. The risk is that the market's impatience with the negative GAAP net income, combined with insider selling, keeps the stock price depressed until the non-GAAP profitability story fully translates to the bottom line.