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    FTSE Index Removal Could Be A Big Moment For Atlassian Stock (TEAM)

    Simply Wall St·09/25/2026 19:17:11
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    • Atlassian Corporation was removed from the FTSE All-World Index in September 2026, taking the software group out of a major global benchmark followed by index-linked funds.
    • This index exit puts fresh attention on Atlassian's reliance on active investors who weigh its cloud transition, AI bets and enterprise adoption without automatic index-driven inflows.
    • We will now assess how Atlassian's index removal could reshape its investment narrative, as long term cloud and AI themes remain central.

    Scan how other software and cloud stocks are positioned around major index changes by reviewing our curated list of 30 high quality undervalued stocks before you decide where Atlassian fits in your portfolio.

    Atlassian Investment Narrative Recap

    To own Atlassian, you need to believe its cloud platform, AI features and broader teamwork tools can keep drawing in more paying users over time. The FTSE All World exit does not change that operating goal. It mainly affects who owns the shares, since index funds may no longer be automatic buyers while active investors reassess the story.

    In the near term, the key swing factor remains how smoothly complex customers shift from Data Center to Cloud and then adopt newer products like AI powered features and Loom. The biggest operational risk is that these migrations take longer or yield less spending than hoped, which could keep cash flow bumpy and delay a clear path to consistent profitability.

    With no fresh company announcements tied directly to the index removal, the most relevant context is Atlassian's recent financial profile. The group reported revenue of US$6.57b and a net loss of US$53.83m, so the business is still in investment mode rather than steady profit delivery. That mix matters more to the thesis than whether the stock sits inside a particular benchmark.

    Analysts expect earnings growth and forecast that Atlassian becomes profitable over the next three years, while also flagging that the shares already trade on a rich P/S multiple of 7.4x versus the US software peer average of 3.8x. For investors, the real question is whether the cloud, AI and enterprise upsell catalysts justify owning a still unprofitable, higher valuation software platform without the tailwind of index driven inflows.

    Atlassian's current analyst storyline points to US$9.9b in revenue and US$671.6m in earnings by 2029, built on expected yearly top line growth of 14.7% and an earnings swing of roughly US$725m from a loss of US$53.8m today to that forecast profit level.

    Uncover why Atlassian's fair value indicates a 3% potential upside to its current price, which could narrow quickly.

    NasdaqGS:TEAM 1-Year Stock Price Chart
    NasdaqGS:TEAM 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate view places Atlassian’s heavy reliance on complex cloud migrations at the center of the risk. Those bearish analysts already projected less top line potential, with revenue estimates closer to US$9.4b and earnings of US$658.3m by 2029. You can treat the index removal as a fresh reason to compare these sharply different forecasts.

    Explore 10 other Atlassian fair value estimates, including one that suggests as much as 57% downside from the current price!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so consider doing your own research and going with your instincts.

    Looking for more Atlassian investment ideas?

    If Atlassian has sharpened your thinking about cloud, software and valuation, it can help to line it up against other potential opportunities using the Simply Wall St Screener. That way you can see how its risks, rewards and financial profile compare with very different types of businesses.

    • For income focused investing where resilience matters, scan a curated set of companies with higher yields and stronger payout profiles through 8 dividend fortresses.
    • If capital preservation sits higher on your priority list, weigh Atlassian against a 30 resilient stocks with low risk scores that seek to keep volatility and business risk in check.
    • When you want to broaden your watchlist beyond widely followed tickers, look through a 16 high quality undiscovered gems that combine robust fundamentals with lower market attention.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.