Elastic (NYSE:ESTC) Shares Gap Up on Earnings Beat

Shares of Elastic N.V. (NYSE:ESTC) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $53.90, but opened at $57.10. Elastic shares last traded at $58.0460, with a volume of 451,584 shares.

The company reported $0.61 earnings per share for the quarter, beating the consensus estimate of $0.56 by $0.05. Elastic had a negative return on equity of 2.02% and a net margin of 21.14%.The company had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. During the same quarter last year, the business posted $0.47 EPS. Elastic’s revenue for the quarter was up 16.0% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.210-3.290 EPS and its Q1 2027 guidance at 0.570-0.590 EPS.

More Elastic News

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 expectations, reporting EPS of $0.61 versus $0.56 expected and revenue of $450.7 million versus $446.7 million expected, with revenue up 16% year over year. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: The company also issued first-quarter and full-year guidance above consensus for EPS, suggesting management sees continued earnings momentum. Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Wall Street remains broadly constructive: Citigroup raised its price target to $104, and other firms like Jefferies, Canaccord, Oppenheimer, and Barclays still have buy/outperform-style ratings even after trimming targets. Analyst target updates
• Neutral Sentiment: Several analysts cut price targets after the report, including Barclays, Jefferies, Canaccord Genuity, Wedbush, and Oppenheimer, which signals some valuation caution rather than a thesis change. Analyst target updates
• Neutral Sentiment: Some investors may also be focusing on management’s fiscal 2027 outlook implying mid-teens revenue growth, which is still healthy but may look slower than the market hoped for after a strong quarter. Elastic shares fall 3.2% as investors digest Q4 results and fiscal 2027 outlook
• Negative Sentiment: Despite the beat, the stock has been volatile because investors were disappointed by the initial post-earnings reaction and are weighing strong growth against the company’s still-negative margins. Elastic N.V. (ESTC) Stock Falls on Q4 2026 Earnings

Analysts Set New Price Targets

ESTC has been the subject of several research analyst reports. William Blair initiated coverage on Elastic in a research report on Friday, May 22nd. They issued an “outperform” rating for the company. Canaccord Genuity Group lowered their price objective on Elastic from $90.00 to $80.00 and set a “buy” rating for the company in a research report on Friday. DA Davidson lowered their price objective on Elastic from $65.00 to $60.00 and set a “neutral” rating for the company in a research report on Friday. Morgan Stanley lowered their price objective on Elastic from $80.00 to $73.00 and set an “overweight” rating for the company in a research report on Monday, March 2nd. Finally, Wells Fargo & Company lowered their price objective on Elastic from $75.00 to $60.00 and set an “equal weight” rating for the company in a research report on Friday, February 27th. Eighteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $80.04.

Insider Buying and Selling at Elastic

In other news, insider Carolyn Herzog sold 3,989 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $208,544.92. Following the transaction, the insider owned 85,335 shares in the company, valued at $4,461,313.80. The trade was a 4.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Ken Exner sold 4,310 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $225,326.80. Following the completion of the transaction, the insider owned 222,728 shares in the company, valued at $11,644,219.84. The trade was a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 38,188 shares of company stock worth $1,996,469. 12.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Elastic

Institutional investors have recently bought and sold shares of the company. Sound Income Strategies LLC purchased a new position in Elastic in the fourth quarter valued at approximately $25,000. Geneos Wealth Management Inc. purchased a new position in Elastic in the second quarter valued at approximately $31,000. Bessemer Group Inc. purchased a new position in Elastic in the first quarter valued at approximately $25,000. Activest Wealth Management lifted its stake in Elastic by 3,181.3% in the fourth quarter. Activest Wealth Management now owns 525 shares of the company’s stock valued at $40,000 after purchasing an additional 509 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd lifted its stake in Elastic by 206.1% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock valued at $42,000 after purchasing an additional 371 shares during the last quarter. Hedge funds and other institutional investors own 97.03% of the company’s stock.

Elastic Trading Up 12.5%

The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72. The firm has a 50 day moving average of $50.38 and a 200 day moving average of $62.83. The firm has a market cap of $6.71 billion, a PE ratio of 18.52, a P/E/G ratio of 109.01 and a beta of 0.88.

About Elastic

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.