ESTC

Elastic’s first quarter results were met with a negative market reaction, despite the company beating Wall Street’s expectations on both revenue and non-GAAP earnings per share. Management attributed quarterly revenue growth primarily to strengthened demand for Elastic’s AI-powered search, observability, and security solutions, as well as a surge in multi-year customer commitments. CEO Ashutosh Kulkarni highlighted progress in displacing legacy vendors, particularly within the public sector, and noted that Elastic’s cloud product mix shift impacted in-quarter revenue recognition. The company also cited strong expansion among high-value customers and ongoing success with its platform consolidation strategy. Is now the time to buy ESTC? Find out in our full research report (it’s free). Revenue: $450.7 million vs analyst estimates of $446.6 million (16% year-on-year growth, 0.9% beat) Adjusted EPS: $0.61 vs analyst estimates of $0.56 (8.4% beat) Adjusted Operating Income: $66.9 million vs analyst estimates of $64.85 million (14.8% margin, 3.2% beat) Revenue Guidance for Q2 CY2026 is $469.5 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for the upcoming financial year 2027 is $3.25 at the midpoint, beating analyst estimates by 14.6% Operating Margin: -3.6%, in line with the same quarter last year Net Revenue Retention Rate: 112%, in line with the previous quarter Annual Recurring Revenue: $1.69 billion vs analyst estimates of $1.77 billion (9.4% year-on-year growth, miss) Billings: $670.3 million at quarter end, up 25.5% year on year Market Capitalization: $6.71 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rob Owens (Piper Sandler) asked what drove the surge in multi-year commitments and if success in the public sector is translating commercially. CEO Ashutosh Kulkarni emphasized the platform’s efficiency and AI capabilities as key factors, noting similar momentum in commercial markets. Matthew Hedberg (RBC Capital Markets) questioned whether accelerating CRPO growth could lead to faster subscription revenue growth. CFO Navam Welihinda confirmed that higher com...

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Elastic (NYSE:ESTC) is back in focus after reporting better than expected quarterly earnings, topping its own guidance as AI, cloud and security products, along with multi year contracts, supported revenue and investor interest. See our latest analysis for Elastic. The latest earnings beat has been met with a sharp rebound in the stock, with a 1 day share price return of 12.31% and a 30 day share price return of 33.10%. However, the year to date share price return is still down 10.83% and the 1 year total shareholder return is down 20.81%, so recent momentum is building from a weak longer term base. If you are watching how AI themed software stocks are moving after earnings, this is also a useful moment to scan the market and see 31 AI small caps With the stock rebounding on strong AI and cloud driven results yet still down over the past year, the key question now is simple: are you looking at an undervalued AI platform or a stock already pricing in future growth? Against the last close of $64.70, the most followed fair value narrative of $99.63 implies a wide gap that hinges on how investors see Elastic’s long term AI and data role. Read the complete narrative. Curious what sits behind that bold fair value call? The narrative leans on rising data workloads, expanding contracts, and a profit profile that assumes Elastic earns a premium software multiple over time. Result: Fair Value of $99.63 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are clear pressure points, including tougher competition from cloud providers and rising R&D and sales costs, which could squeeze margins if large deals slow. Find out about the key risks to this Elastic narrative. With both risks and rewards in play, this is the kind of setup where it pays to look under the hood yourself and move quickly to shape your own view, starting with a clear snapshot of the 2 key rewards and 3 important warning signs. If Elastic has caught your attention, do not stop there, widen your watchlist with fresh ideas that match different goals and risk levels. Target potential mispricing by reviewing companies flagged as 46 high quality undervalued stocks that may offer more attractive entry points based on fundamentals. Strength...

Morgan Stanley updated its outlook on three software stocks following earnings, highlighting how differently AI adoption is impacting companies across the sector. Morgan Stanley believes investors are increasingly focused on companies that can use AI to drive durable revenue growth; for example Elastic N.V. (ESTC), UiPath (PATH), and PagerDuty (PD) all reported results that largely met or exceeded expectations. Morgan Stanley maintained its Equal Weight rating on Elastic and cut its price target from $80 to $73 (current share price of $65), arguing that strong bookings and growing AI adoption are helping strengthen the company's growth outlook. Elastic delivered one of the more interesting quarters in the group because bookings growth significantly outpaced reported revenue growth. In the fourth quarter, current remaining performance obligations rose 20% to $1.2 billion, while total RPO climbed 27% to $1.98 billion, signaling that customer commitments are building faster than revenue recognition. AI adoption also continued to move in the right direction. The number of customers with annual contracts worth more than $100,000 using Elastic's AI capabilities climbed to more than1,720, up from roughly 1,660 in the prior quarter, while the company reported a record number of $1 million-plus deals. Morgan Stanley noted that bookings strength was broad-based across search, security, and observability. However, they expect investors will likely want proof that AI demand is translating into deployed workloads and recognized revenue before the stock trades at a higher multiple. Morgan Stanley maintained its Equal Weight rating on UiPath and lowered its price target to $15 from $17 (current share price of $12), arguing that AI momentum is improving but has yet to show up in recurring revenue growth. UiPath delivered solid first-quarter results, with revenue rising 17% year over year to $418 million and operating profit coming in ahead of expectations. Management said AI was included in 16 of the top 20 deals during the quarter, while AI-led expansion deals were materially larger than traditional expansion opportunities. Morgan Stanley noted that agentic automation appears to be moving from experimentation into production environments. Trending Stock News: Morgan Stanley resets MongoDB stock price target after earnings Analog Devices CEO drops bombshell message on explo...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a seventh consecutive quarter of disciplined field execution, resulting in CRPO growth accelerating to 20% as organizations standardize on Elastic for long-term AI transformations. Management attributes the record number of $1 million-plus deals to a strategic shift where high-value customers are leading the transition toward multi-year commitments to secure their AI infrastructure. The company is successfully displacing legacy security and observability incumbents by proving superior relevancy and cost efficiency through its unified data tier and AI-driven SOC and SRE agents. A significant shift in the U.S. public sector toward Elastic Cloud impacted in-quarter revenue due to ratable recognition but is viewed as a long-term positive as agencies ramp usage toward high commitment levels. Strategic positioning is centered on four foundational strengths: data gravity, context engineering leadership, specialized autonomous agents, and platform consolidation. Internal operations are being restructured to leverage AI-driven automation across engineering, marketing, and finance, which management expects will simplify operations and meaningfully expand margins. Management expects quarterly revenue growth to accelerate throughout FY 2027, with Q1 being the lowest growth period and Q4 the highest, fueled by the conversion of current CRPO into recognized revenue. The FY 2027 guidance assumes continued momentum in the U.S. public sector cloud adoption and increasing productivity from a larger pool of ramped sales capacity. Operating margins are projected to expand by approximately 2.5 percentage points in FY 2027, with the medium-term FY 2029 target raised from over 20% to approximately 25% due to AI-driven internal efficiencies. The company remains on track to achieve its midterm target of 20%-plus sales-led subscription revenue growth by FY 2029, supported by a 5% faster expansion rate in AI-adopting customer cohorts. Capital allocation will prioritize returning 50% of free cash flow to shareholders via buybacks, assuming no attractive M&A opportunities emerge that require cash. GAAP net income was impacted by a one-time $435 million benefit from the release of valuation allowances against de...

This article first appeared on GuruFocus. Total Revenue (Q4): $451 million, 16% growth as reported, 14% growth on a constant currency basis. Full-Year Revenue Growth (FY26): 17%. Non-GAAP Operating Margin (Q4): 14.8%. Non-GAAP Operating Margin (FY26): 16.4%. Sales-Led Subscription Revenue (Q4): $375 million, 19% growth as reported, 16% growth on a constant currency basis. CRPO (Q4): $1.2 billion, 20% growth both as reported and on a constant currency basis. RPO (Q4): $1.98 billion, 28% growth as reported, 27.4% growth on a constant currency basis. Adjusted Free Cash Flow Margin (FY26): Approximately 20%. Share Repurchase Program: $40 million returned in Q4, 68% of $500 million authorized amount used. Guidance for FY27 Total Revenue: $1.985 billion to $2 billion, 14.6% growth at the midpoint. Guidance for FY27 Non-GAAP Operating Margin: Approximately 19%. Guidance for FY27 Adjusted Free Cash Flow Margin: 21.5%. Warning! GuruFocus has detected 10 Warning Signs with NGL. Is ESTC fairly valued? Test your thesis with our free DCF calculator. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Elastic NV (NYSE:ESTC) finished the year strong, beating guidance across every key metric, marking the seventh consecutive quarter of disciplined field execution. The company saw a significant acceleration in CRPO growth to 20%, with organizations increasingly choosing Elastic for long-term AI transformations. Elastic achieved a 16% total revenue growth in Q4 and a non-GAAP operating margin of 14.8%, with full-year revenue growth of 17% and a non-GAAP operating margin of 16.4%. The company reported a record Q4 for $1 million deals, adding more than 30 net new customers to its $1 million-plus ACV cohort, with a 30% growth in customers spending over $5 million annually. Elastic's partnership with the Cybersecurity and Infrastructure Security Agency (CISA) is growing, with more civilian agencies switching to Elastic Cloud, indicating strong public sector momentum. The shift towards cloud commitments impacted in-quarter Q4 revenue, as cloud commitments ramp over the year, unlike self-managed commitments which have upfront revenue recognition. There was a slight churn in the monthly cloud business, which grew only 3%, reflecting challenges in the SMB segment. Elastic's guidance for FY27 indicates a slower...

Elastic N.V. ESTC reported fourth-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 8.9%. The figure increased 29.8% year over year. Elastic’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%. Revenues of $451 million beat the Zacks Consensus Estimate by 1%. The figure rose 16% year over year on a reported basis and 14% on a constant-currency (cc) basis. Customers with ACV above $100,000 ended the quarter at more than 1,720, underscoring continued enterprise traction. Elastic N.V. price-consensus-eps-surprise-chart | Elastic N.V. Quote Subscription revenues remained the company's core barometer of health, totaling $422.4 million, up 16.8% year over year and representing 94% of total revenues. Within that, sales-led subscription revenues (subscription revenues excluding Monthly Elastic Cloud) rose 19% year over year to $374.7 million, reflecting strength in larger, sales-driven engagements. Cloud continued to expand as a meaningful contributor. Annual Elastic Cloud revenues were $169.6 million, up 26% year over year. Monthly Elastic Cloud revenues were $47.8 million, up 3% year over year, keeping total Elastic Cloud at $217.4 million, or 48% of total revenues. Professional services revenues were $28.2 million, up 6% year over year and representing 6.3% of total revenues. Non-GAAP gross margin was 77.5% (up roughly 50 bps year over year) and non-GAAP operating margin was 14.8% (down approximately 50 bps). Current remaining performance obligations were $1.203 billion, up 20% year over year, while total remaining performance obligations reached $1.982 billion, up 28% year over year. Cash, cash equivalents and marketable securities totaled $1.37 billion as of April 30, 2026, against total debt of $570.9 million. Operating cash flow was $152.7 million, and adjusted free cash flow was $149.8 million, implying a 33% adjusted free cash flow margin for the quarter. In the fourth quarter of fiscal 2026, Elastic repurchased about 0.7 million shares at an average price of $61.28 for roughly $40 million. In fiscal 2026, the company repurchased about 4.4 million shares at an average price of $76.91, representing approximately $340 million in aggregate repurchases under its $500 million authorization. For the first quarter of fiscal 2027, Elastic expect...

Elastic (ESTC) delivered solid fiscal Q4 results with broad-based beats, setting up improving moment

Image source: The Motley Fool. Thursday, May 28, 2026 at 5 p.m. ET Chief Executive Officer — Ashutosh Kulkarni Chief Financial Officer — Navam Welihinda Ashutosh Kulkarni: Thank you, Eric, and good afternoon, everyone. Thank you for joining us today to discuss our fourth quarter and fiscal 26 results. Elastic finished the year strong beating our guidance across every key metric. This was our 7th consecutive quarter disciplined field execution and we saw very strong commitments resulting in CRPO growth accelerating to 20%, Organizations are increasingly choosing Elastic for their long term AI transformations and making larger multi year commitments to standardize on our platform for the future. The acceleration in our Q4 RPO growth which reached over 28% validates the growing magnitude momentum of our customer commitments and sets us up well for the future. In Q4, we achieved 16% total revenue growth and a non GAAP operating margin of 14.8%. Resulting in a full year revenue growth of 17% and a non GAAP operating margin of 16.4%. In Q4, our sales led subscription revenue grew 19%. Driven by continued demand for our platform for AI, search, observability and security. Our highest value customers are leading the shift towards multiyear deals. It was a record Q4 for $1 million deals and in FY 2026 we added more than 30 net new customers to our $1 million-plus ACV cohort. Bringing that total to more than 240. Within that group, our count of customers spending over $5 million with us annually grew 30%. We ended the year with over 37 customers spending more than $100 thousand in ACV. This is highlighted by several marquee wins in security as we continue displacing legacy vendors. In the public sector, our partnership with the Cybersecurity and Infrastructure Security Agency or CISA, around the Elastic SIEM as a Service is growing. With more civilian agencies switching away from competitive security offerings onto the service powered by Elastic Cloud. This led to our commitments mix in Q4 to shift more towards Elastic Cloud than in prior years. Which impacted our in quarter Q4 revenue. This shift to cloud will be a positive for the future as these agencies ramp their usage toward their commitment levels. The broader AI cycle is actively driving our growth. Customers rely on us not only as a context platform for AI, but to modernize their operations with our AI-driven...

Elastic (ESTC) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.72%. A quarter ago, it was expected that this software developer would post earnings of $0.64 per share when it actually produced earnings of $0.73, delivering a surprise of +14.06%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Elastic, which belongs to the Zacks Internet - Software industry, posted revenues of $450.68 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $388.43 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Elastic shares have lost about 28.6% since the beginning of the year versus the S&P 500's gain of 9.9%. While Elastic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Elastic was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here...

Interested in Elastic N.V.? Here are five stocks we like better. Elastic beat Q4 fiscal 2026 expectations, with revenue up 16% to $451 million and strong subscription growth. Management said the company finished the year with broad-based momentum and notable strength in larger multi-year deals. AI demand is becoming a major growth driver, with executives citing more than 600 customers using Elastic AI capabilities and several large customer wins tied to AI, security and observability use cases. They said AI adoption is helping Elastic win bigger, longer-term commitments. Backlog and guidance point to continued expansion, as CRPO grew 20% and RPO rose 28%, signaling solid future revenue visibility. For fiscal 2027, Elastic guided for about 14.6% revenue growth at the midpoint and raised its fiscal 2029 operating margin target to roughly 25%. Why Elastic Could Be the Next AI Winner in 2026 Elastic (NYSE:ESTC) reported stronger-than-expected fourth-quarter fiscal 2026 results, with executives pointing to accelerating customer commitments, rising artificial intelligence-related adoption and larger multi-year deals as key drivers of momentum heading into fiscal 2027. Chief Executive Officer Ashutosh Kulkarni said the company “finished the year strong, beating our guidance across every key metric,” marking what he described as the seventh consecutive quarter of disciplined field execution. He said current remaining performance obligations, or CRPO, accelerated to 20% growth, while remaining performance obligations, or RPO, grew more than 28% in the quarter. → Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move Buyback Boom: 3 Companies Betting Big on Themselves “Organizations are increasingly choosing Elastic for their long-term AI transformations and making larger multi-year commitments to standardize on our platform for the future,” Kulkarni said. For the fourth quarter, Elastic reported total revenue of $451 million, up approximately 16% as reported and 14% on a constant-currency basis. Sales-led subscription revenue was $375 million, representing growth of 19% as reported and 16% in constant currency. → Quantum Stocks Just Got a Lifeline—Who Benefits Most? MarketBeat Week in Review – 03/03 - 03/07 For the full fiscal year, the company reported 17% revenue growth and a non-GAAP operating margin of 16.4%. Fourth-quarter non-GAAP ope...

MOUNTAIN VIEW, Calif. (AP) — MOUNTAIN VIEW, Calif. (AP) — Elastic NV (ESTC) on Thursday reported fiscal fourth-quarter net income of $435.9 million. The Mountain View, California-based company said it had profit of $4.14 per share. Earnings, adjusted for one-time gains and costs, were 61 cents per share. The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 56 cents per share. The software developer posted revenue of $450.7 million in the period, which also topped Street forecasts. Nine analysts surveyed by Zacks expected $446.4 million. For the year, the company reported profit of $367.8 million, or $3.43 per share. Revenue was reported as $1.74 billion. For the current quarter ending in July, Elastic expects its per-share earnings to range from 57 cents to 59 cents. The company said it expects revenue in the range of $469 million to $470 million for the fiscal first quarter. Elastic expects full-year earnings in the range of $3.21 to $3.29 per share, with revenue ranging from $1.99 billion to $2 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ESTC at https://www.zacks.com/ap/ESTC

Q4 Revenue of $451 million, up 16% year-over-yearFY26 Revenue of $1.739 billion, up 17% year-over-year SAN FRANCISCO, May 28, 2026--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced financial results for its fourth quarter and full fiscal year ended April 30, 2026. Fourth Quarter Fiscal 2026 Financial Highlights Total revenue was $451 million, an increase of 16% year-over-year, or 14% on a constant currency basis Total subscription revenue was $422 million, an increase of 17% year-over-year, or 15% on a constant currency basis Sales-led subscription revenue (calculated as subscription revenue excluding Monthly Elastic Cloud) was $375 million, an increase of 19% year-over-year, or 16% on a constant currency basis Current remaining performance obligations were $1.203 billion, an increase of 20% year-over-year, as reported and on a constant currency basis Remaining performance obligations were $1.982 billion, an increase of 28% year-over-year, or 27% on a constant currency basis GAAP operating loss was $16 million; GAAP operating margin was -4% Non-GAAP operating income was $67 million; non-GAAP operating margin was 14.8% GAAP diluted earnings per share was $4.14; non-GAAP diluted earnings per share was $0.61 Operating cash flow was $153 million with adjusted free cash flow of $150 million Cash, cash equivalents, and marketable securities were $1.370 billion as of April 30, 2026 Full Fiscal 2026 Financial Highlights Total revenue was $1.739 billion, an increase of 17% year-over-year, or 16% on a constant currency basis Total subscription revenue was $1.634 billion, an increase of 18% year-over-year, or 17% on a constant currency basis Sales-led subscription revenue (calculated as subscription revenue excluding Monthly Elastic Cloud) was $1.438 billion, an increase of 20% year-over-year, or 18% on a constant currency basis GAAP operating loss was $33 million; GAAP operating margin was -2% Non-GAAP operating income was $285 million; non-GAAP operating margin was 16.4% GAAP diluted earnings per share was $3.43(1); non-GAAP diluted earnings per share was $2.57 Operating cash flow was $327 million with adjusted free cash flow of $346 million Rule of 40 was 37%, calculated as the sum of fiscal 2026 year-over-year total revenue growth of 17% and fiscal 2026 adjusted free cash flow margin of 20% "Elastic delivered a strong finish to the year, beat...