PD vs TEAM: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: PD is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. PD and TEAM share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined PD and TEAM exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

PagerDuty sells the software that wakes engineers up. When a payment system, a checkout flow or an internal API breaks, PagerDuty ingests the alert from monitoring tools, decides who is on call, escalates until a human acknowledges it, and coordinates the response through to a postmortem. Around that core it has added runbook automation (from its 2020 Rundeck purchase), an AIOps layer that groups noisy alerts into single incidents, customer service operations tooling, and more recently a set of agentic features including an autonomous site-reliability agent and automated shift management. Roughly 15,500 paying customers use it, of which about 884 spend more than ~$100,000 a year, and annual recurring revenue sits near ~$501 million.

Full PD guide

Atlassian is an Australian software company that makes collaboration and productivity tools used by software-development teams and, increasingly, teams across whole organizations. Its best-known products are Jira (project and issue tracking widely used by engineering teams), Confluence (team wikis and documentation), and a family of related tools for IT service management (Jira Service Management), agile planning, and developer workflows. Atlassian also owns Trello (visual task boards) and integrates with developer tools across the ecosystem. The company makes money primarily through cloud subscriptions, with revenue increasingly recurring as it migrates customers from self-hosted server products to its cloud platform. Atlassian historically grew with low-touch, product-led adoption (teams sign up and expand without heavy sales effort) and a high-volume, self-service model, though it has added enterprise sales. It is incorporated in the United States with major operations in Sydney, Australia, and serves hundreds of thousands of customers globally, from small teams to large enterprises.

Full TEAM guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• PD drivers: Margin and cash generation from a flat revenue base; A new chief executive and a go-to-market reset.
• TEAM drivers: Cloud migration and recurring revenue; Land-and-expand product-led growth.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The core problem is demand, not costs: dollar-based net retention of ~98% means the existing customer base is shrinking slightly net of expansion, so new logos are doing the work of holding revenue flat. For TEAM, atlassian faces strong competition from Microsoft (which bundles GitHub, Azure DevOps, Teams, and Planner), as well as point solutions like Monday.com, Asana, ServiceNow, and Notion.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick PD if you believe its drivers more; TEAM if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the PD and TEAM guides.

PD. Two numbers explain most of the debate around PD. Revenue growth under 1% with retention below 100% is what keeps the multiple near ~2x sales, while a ~23.7% non-GAAP operating margin, real free cash flow and a cash pile worth roughly half the market cap are what keeps the floor where it is. Guidance for the rest of fiscal 2027 implies more of the same, with quarterly revenue held around ~$123 million to ~$125 million and profitability doing the improving.

TEAM. Atlassian trades on growth and free cash flow rather than GAAP earnings, which are weighed down by heavy stock-based compensation and reinvestment. The qualitative profile is an efficient, product-led software franchise migrating customers to the cloud and expanding into the enterprise. The premium valuation makes the stock sensitive to any slowdown in seat growth or cloud migration.

Headline figures (approximate, August 2026): PD shows revenue (ttm) ~$494 million, q2 fy2027 revenue (quarter ended july 31, 2026) ~$124.4 million, up ~0.8% year over year, annual recurring revenue / net retention ~$501 million ARR, dollar-based net retention ~98%, profitability GAAP operating income ~$10.2 million (~8.2% margin); non-GAAP operating margin ~23.7%; non-GAAP diluted EPS ~$0.32; TEAM shows revenue (ttm) ~$5 billion, revenue growth high-teens to ~20% year over year, cloud revenue the largest and fastest-growing component, gross margin ~80%, typical of software.

PD and TEAM are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined PD and TEAM exposure against your real portfolio. It is not an investment adviser.