The French Open champion, who was hoping to become the first Australian to win at the All England Club since Evonne Goolagong Cawley in 1980, lost in three sets to the American Alison Riske.
The top three of Barty, Naomi Osaka and Karolina Pliskova remains unchanged although none of them reached the quarter-finals.
Ashleigh Barty: From no ranking to world number one
Simona Halep, who demolished Serena Williams in under an hour in Saturday's final, moves up three places to number four.
Williams also moves up one place to nine.
Former world number one Angelique Kerber, who lost to Lauren Davis in the second round at Wimbledon, drops out of the top 10 to 13.
WTA rankings as of July 15 (changes in brackets):
- Ashleigh Barty (AUS) 6,605 pts
- Naomi Osaka (JAP) 6,257
- Karolina Pliskova (CZE) 6,055
- Simona Halep (ROU) 5,933 (+3)
- Kiki Bertens (NED) 5,130 (-1)
- Petra Kvitova (CZE) 4,785
- Elina Svitolina (UKR) 4,638 (+1)
- Sloane Stephens (USA) 3,802 (+1)
- Serena Williams (USA) 3,411 (+1)
- Aryna Sabalenka (BLR) 3,365 (+1)
- Anastasija Sevastova (LAT) 3,356 (+1)
- Belinda Bencic (SUI) 2,963 (+1)
- Angelique Kerber (GER) 2,875 (-8)
- Qiang Wang (CHN) 2,872 (+1)
- Johanna Konta (GBR) 2,790 (+3)
- Marketa Vondrousova (CZE) 2,762 (-2)
- Madison Keys (USA) 2,555 (-1)
- Caroline Wozniacki (SUI) 2,478 (+1)
- Anett Kontaveit (EST) 2,335 (+1)
- Petra Martic (CRO) 2,335 (+4)
Selected
- Barbora Strycova (CZE) 1,750 (+22)
- Alison Riske (USA) 1,437 (+18)
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