Snowflake and Other Major Software Firms Excluded from S&P 500 Due to Lack of Earnings

Written by Emily J. Thompson, Senior Investment Analyst

TEAM+1.58%

NET+0.58%

BRK.B-1.11%

Source: Barron's

Updated: Dec 03 2025

0mins

Source: Barron's

Snowflake's Market Position: Snowflake is currently the largest company by market value that is not included in the S&P 500 index.
Profitability Concerns: The software provider is unlikely to be admitted to the S&P 500 due to its lack of profitability according to traditional accounting standards.

TEAM

$130.47+Infinity%1D

Analyst Views on TEAM

Wall Street analysts forecast TEAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEAM is 235.57 USD with a low forecast of 185.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

23 Analyst Rating

19 Buy

4 Hold

0 Sell

Strong Buy

Current: 128.440

Low

185.00

Averages

235.57

High

320.00

Current: 128.440

Low

185.00

Averages

235.57

High

320.00

Oppenheimer

Ittai Kidron

Outperform

maintain

$275

2026-01-22

New

Reason

Oppenheimer

Ittai Kidron

Price Target

$275

AI Analysis

2026-01-22

New

maintain

Outperform

Reason

Oppenheimer analyst Ittai Kidron expects Atlassian to report solid Q2 results, slightly ahead of consensus, with in-line Q3 guidance. However, the firm believes FY27 data center revenue growth expectations are overstated and don't account for faster data center-to-Cloud migration, a lower data center user base, and upfront revenue recognition at data center renewals. Oppenheimer models FY27 DC revenue growth at down 0.7% vs. consensus' up 7.9%. Although there's migration uncertainty, the firm's checks suggest a stable demand and competitive environment, and increased sales focus on enterprise engagement. While the shares have been caught in the SaaS/AI vortex, Oppenheimer would still wait for the migration framework/DC outlook to reset before buying the shares. The firm has an Outperform rating on the shares with a price target of $275.

Morgan Stanley

Overweight

maintain

$320

2026-01-22

New

Reason

Morgan Stanley

Price Target

$320

2026-01-22

New

maintain

Overweight

Reason

Morgan Stanley argues that Atlassian "faces an attractive setup" into fiscal Q2 with shares down 25% year-to-date and trading at "a deeply discounted valuation." The firm sees a path to 22% revenue growth and 26% operating margin in Q2 as building Cloud momentum and stable demand environment come up against "conservative estimates and overstated AI concerns," the analyst added in a preview. The firm has an Overweight rating and $320 price target on Atlassian shares.

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Mizuho

Outperform

NULL

downgrade

$245 -> $225

2026-01-21

New

Reason

Mizuho

Price Target

$245 -> $225

2026-01-21

New

downgrade

Outperform

NULL

Reason

Mizuho lowered the firm's price target on Atlassian to $225 from $245 and keeps an Outperform rating on the shares. The firm adjusted targets in large-cap software as part of a Q4 earnings preview. Channel checks were solid overall, with public cloud data points were "generally good" and AI adoption "very strong," the analyst tells investors in a research note. However, Mizuho says some of its checks noted more moderate budget flush activity than usual. In addition, growing investor concerns about AI disruption :continue to decimate many software company multiples," the firm contends. It cites recent multiple compression for the target cuts.

TD Cowen

Hold

downgrade

$205 -> $175

2026-01-20

New

Reason

TD Cowen

Price Target

$205 -> $175

2026-01-20

New

downgrade

Hold

Reason

TD Cowen lowered the firm's price target on Atlassian to $175 from $205 and keeps a Hold rating on the shares. The firm previewed its quarter and said checks were fairly constructive, JSM momentum, cloud migrations, new packaging, active sales hiring, though data suggests little traction with its AI products.

About TEAM

Atlassian Corporation is a provider of team collaboration and productivity software. The Company specializes in software development, work management, and enterprise service management software, which enables enterprises to connect their business and technology teams with an artificial intelligence (AI)-powered system of work. Its interconnected portfolio of apps, AI agents, and Collections, each with discrete value propositions, delivers solutions for software teams, IT operations and support teams, leadership, and business teams. Its apps, agents, and Collections are all built on the Atlassian Cloud Platform and data model: a common technology foundation that connects teams, information, and workflows throughout an organization. Its apps include Jira, Confluence, Loom, Jira Service Management, Rovo, Bitbucket, Compass, Jira Product Discovery, Jira Align, Focus and Talent. It offers team collaboration products on its Data Center deployment option. It operates the Dia and Arc browsers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.