Atlassian founders lose $7.2 billion in AI driven tech selloff

Thursday 19 February 2026 - 07:00

By: Dakir Madiha

Atlassian founders lose $7.2 billion in AI driven tech selloff

Michael Cannon-Brookes and Scott Farquhar, cofounders of Atlassian, have seen an estimated $7.2 billion wiped from their combined fortunes this year as investor anxiety over artificial intelligence disrupts global software stocks.

The losses represent roughly one third of their collective wealth in 2026, placing the pair among the biggest financial losers in the software billionaire ranks this year, according to Bloomberg. Only three founders of advertising platform AppLovin have recorded steeper declines. The reversal comes despite Atlassian posting record financial results, highlighting growing market doubts about whether traditional software as a service companies can withstand rapid advances in AI.

Earlier this month, Atlassian reported fiscal second quarter 2026 revenue of $1.59 billion, up 23 percent year on year, and surpassed $1 billion in cloud revenue for the first time. Non GAAP earnings per share reached $1.22, beating consensus estimates by 28 percent and marking the company’s ninth consecutive earnings surprise. Management also raised forward guidance beyond analyst expectations.

The strong performance failed to stabilize the stock. Shares have fallen from about $154 at the start of January to roughly $83 in after hours trading on February 18, a drop of more than 45 percent since the beginning of the year. The stock now trades 74 percent below its 52 week high of $316.99.

Selling pressure intensified following the mid January launch of Claude Cowork by Anthropic, an AI agent designed to manage files, draft documents and automate office tasks directly on users’ computers. Within two days of the broader rollout to subscribers, Atlassian shares had declined 21 percent.

The downturn extends across the broader software sector. Market analyst Christopher Henry estimates that technology software companies have shed about $1 trillion in market value since the start of 2026. Salesforce, Intuit and Atlassian have fallen 27.9 percent, 33 percent and 41.6 percent respectively since the Claude Cowork announcement.

Workday shares are down more than 28 percent year to date, while Adobe has declined 26 percent. In Australia, cloud accounting provider Xero dropped 16 percent in a single trading session in early February, its sharpest daily fall since 2013, as the selloff spread to Asian markets.

Adam Turnquist, chief technical strategist at LPL Financial, said investors appear to be pricing in a worst case scenario in which AI renders conventional software obsolete. Analysts at J.P. Morgan noted that negative sentiment persists around the software industry, creating what they described as a damaging cycle of compressed valuations alongside elevated or rising investor expectations.

The erosion of wealth marks a notable shift for Cannon-Brookes and Farquhar, who became Australia’s first startup tech billionaires when Atlassian listed on the Nasdaq in December 2015 with a valuation of $4.37 billion. At their peak in 2022, each founder was worth more than 26 billion Australian dollars.

Farquhar stepped down as co chief executive in August 2024, leaving Cannon-Brookes as sole CEO. Both remain among Australia’s wealthiest individuals, though the Forbes Australia Rich List 2026 reported that they experienced the largest absolute declines due to intensifying competition affecting Atlassian’s share price.

Citi analyst Fatima Boolani lowered her price target on Atlassian to $160, citing sector turbulence while maintaining that the company’s fundamentals remain solid. For investors, the central question is whether AI tools will enhance existing software platforms or displace them entirely.