Elastic (NYSE:ESTC) Announces Earnings Results

Elastic (NYSE:ESTC) posted its earnings results on Thursday. The company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.12, FiscalAI reports. Elastic had a net margin of 20.84% and a negative return on equity of 0.38%. The company had revenue of $478.11 million for the quarter, compared to analyst estimates of $469.75 million. Elastic’s revenue was up 15.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.60 EPS. Elastic updated its FY 2027 guidance to 3.290-3.370 EPS and its Q2 2027 guidance to 0.800-0.820 EPS.

Here are the key takeaways from Elastic’s conference call:

• Strong Q1 execution: Revenue increased 15% to $478 million, sales-led subscription revenue rose 18% to $399 million, and non-GAAP operating margin reached 16.2%, beating company guidance.
• Full-year outlook raised: Elastic now expects fiscal 2027 revenue of $1.998 billion-$2.010 billion, representing approximately 15.2% growth at the midpoint, with sales-led subscription revenue growth of approximately 17.4% and non-GAAP operating margin of 19.4%.
• Enterprise and AI adoption accelerated: Customers with at least $100,000 in annual contract value increased by more than 80 net additions, reaching over 1,800 and representing 90% of sales-led subscription revenue. AI usage among these customers rose to 37% from approximately 21% a year ago, while CRPO and RPO grew 21% and 27%, respectively.
• Product expansion is broadening growth opportunities: Elastic highlighted new vector-search and agent capabilities, its metrics-focused Columnar Mode, native Prometheus support, and the Deductive AI acquisition for agentic SRE. Management said security remained the fastest-growing solution area, with search and AI also strong and observability positioned for future growth.
• Near-term metrics remain mixed: Net expansion rate declined modestly to 111% from 112%, although management expects it to recover as revenue growth accelerates. The company also incurred approximately $20 million in first-quarter restructuring charges and expects an additional $2 million-$5 million during the remainder of the fiscal year.

Elastic Stock Up 19.1%

Shares of NYSE ESTC opened at $99.75 on Friday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.68 and a quick ratio of 1.68. Elastic has a 12-month low of $42.05 and a 12-month high of $108.00. The company has a market capitalization of $10.37 billion, a PE ratio of 27.94, a price-to-earnings-growth ratio of 20.89 and a beta of 0.98. The firm’s 50-day moving average is $68.25 and its two-hundred day moving average is $59.05.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Rosenblatt Securities reissued a “buy” rating and set a $83.00 price objective on shares of Elastic in a research report on Wednesday. Wall Street Zen cut shares of Elastic from a “buy” rating to a “hold” rating in a report on Saturday, June 13th. Weiss Ratings raised Elastic from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, July 15th. Oppenheimer boosted their target price on Elastic from $100.00 to $118.00 and gave the company an “outperform” rating in a report on Friday. Finally, JPMorgan Chase & Co. lifted their price target on Elastic from $93.00 to $105.00 and gave the stock an “overweight” rating in a research report on Friday. Fifteen research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $94.12.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Quarterly beat and raised outlook: Elastic reported adjusted EPS of $0.70 versus the consensus estimate of $0.58, while revenue reached approximately $478.1 million, up about 15% year over year and ahead of most estimates. Management guided fiscal Q2 EPS to $0.80-$0.82, compared with the $0.66 consensus, and raised fiscal 2027 EPS guidance to $3.29-$3.37 versus an expected $2.64. Elastic Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: AI and enterprise demand are supporting growth: Coverage highlights increasing AI adoption, expansion among large enterprise customers and new product investments as drivers of Elastic’s accelerating revenue outlook. The results also showed solid cash generation, with operating cash flow of roughly $132 million. Another Day, Another Software Stock Surging 20%
• Positive Sentiment: Analyst targets moved higher: Oppenheimer, Jefferies, JPMorgan, Canaccord Genuity and Robert W. Baird all raised their price targets following the earnings report. Several firms now carry targets of $118-$120, with ratings ranging from “buy” to “outperform,” reinforcing the bullish reaction. Jefferies Raises Elastic Price Target
• Neutral Sentiment: Elastic announced that proxy materials for its October 15, 2026 annual shareholder meeting are available online. The filing is routine and is unlikely to materially affect the stock. Elastic Announces Proxy Materials Availability
• Negative Sentiment: Some valuation caution remains: Morgan Stanley maintained an “equal weight” rating with a $75 target, below the current trading level. Reported insider activity also shows sales without purchases in recent months, although these transactions may reflect routine diversification.

Insider Activity at Elastic

In other Elastic news, CRO Mark Eugene Dodds sold 18,439 shares of the business’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,117,587.79. Following the completion of the transaction, the executive directly owned 298,211 shares in the company, valued at approximately $18,074,568.71. The trade was a 5.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ken Exner sold 18,449 shares of the stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,118,193.89. Following the transaction, the insider owned 360,037 shares in the company, valued at $21,821,842.57. This trade represents a 4.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 110,099 shares of company stock valued at $6,673,100 in the last ninety days. 12.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Elastic

Hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. purchased a new stake in shares of Elastic during the 2nd quarter valued at $31,000. Aster Capital Management DIFC Ltd grew its position in Elastic by 206.1% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock valued at $42,000 after acquiring an additional 371 shares during the period. Kestra Advisory Services LLC acquired a new stake in Elastic during the fourth quarter worth about $49,000. Quarry LP raised its holdings in shares of Elastic by 16,200.0% in the 4th quarter. Quarry LP now owns 652 shares of the company’s stock worth $49,000 after purchasing an additional 648 shares during the period. Finally, Empowered Funds LLC acquired a new position in shares of Elastic in the 4th quarter valued at about $62,000. 97.03% of the stock is owned by institutional investors and hedge funds.

Elastic Company Profile

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.