Moody’s Upgrades Atlassian to Baa2 on Strong Cloud Momentum

On May 23, 2025, Moody's Ratings raised its assessment of Atlassian's (NASDAQ:TEAM) senior unsecured notes to Baa2 from Baa3, and similarly bumped its senior unsecured shelf to (P)Baa2 from (P)Baa3—maintaining a Stable outlook. This upgrade reflects Moody's confidence in Atlassian's rapid revenue growth, disciplined financial policies, and robust cloud‑migration strategy (see recent rating actions in FMP's Bulk Ratings API).

Upgrade Drivers: Cloud Revenue & Profit Leverage

• 20%+ Revenue Growth: Moody's projects Atlassian will expand revenues by at least 20% annually over the next 12-24 months, led by rising cloud‑subscription adoption.

• Profit Outperformance: Operating profits are expected to grow faster than top‑line, benefiting from scalable infrastructure and higher‑margin cloud offerings.

Strategic Investments Powering Expansion

Atlassian has funneled resources into bolstering its cloud platform's scalability, performance, and security—key to attracting large enterprises migrating from on‑premise. Enhanced compliance controls and AI‑driven features within Jira, Confluence, and Opsgenie are designed to boost customer retention and unlock premium pricing capabilities.

Financial Strength & Credit Metrics

Moody's upgrade also underscores Atlassian's conservative balance‑sheet management. According to FMP's Company Rating & Information API, Atlassian maintains solid liquidity and manageable leverage, setting the stage for further credit‑metric improvement as cloud ARR scales and free‑cash‑flow generation accelerates.

With leading market positions in software development and IT‑service management tools, Atlassian's fortified credit rating and cloud‑driven growth outlook position it well to capitalize on enterprise digital‑transformation trends—while preserving financial flexibility for future innovation.