Elastic (NYSE:ESTC) Releases FY 2026 Earnings Guidance

Elastic (NYSE:ESTC) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.500-2.540 for the period, compared to the consensus estimate of 1.470. The company issued revenue guidance of $1.7 billion-$1.7 billion, compared to the consensus revenue estimate of $1.7 billion. Elastic also updated its Q4 2026 guidance to 0.550-0.570 EPS.

Elastic Trading Down 15.5%

ESTC opened at $52.04 on Friday. The firm has a market capitalization of $5.48 billion, a price-to-earnings ratio of -65.05, a PEG ratio of 250.50 and a beta of 0.93. The company’s 50 day moving average price is $68.42 and its two-hundred day moving average price is $77.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.97 and a quick ratio of 1.97. Elastic has a fifty-two week low of $49.90 and a fifty-two week high of $117.49.

Elastic (NYSE:ESTC) last announced its quarterly earnings results on Thursday, February 26th. The company reported $0.73 EPS for the quarter, beating analysts’ consensus estimates of $0.64 by $0.09. The company had revenue of $449.88 million for the quarter, compared to analysts’ expectations of $438.37 million. Elastic had a negative net margin of 5.04% and a negative return on equity of 2.25%. Elastic’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.63 EPS. Elastic has set its FY 2026 guidance at 2.500-2.540 EPS and its Q4 2026 guidance at 0.550-0.570 EPS. As a group, research analysts predict that Elastic will post -0.77 earnings per share for the current year.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Canaccord Genuity Group reduced their target price on Elastic from $115.00 to $90.00 and set a “buy” rating for the company in a report on Friday. Weiss Ratings restated a “sell (d)” rating on shares of Elastic in a research report on Wednesday, January 21st. Jefferies Financial Group lowered their price objective on shares of Elastic from $105.00 to $95.00 and set a “buy” rating for the company in a report on Monday, January 5th. Wells Fargo & Company cut their target price on Elastic from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Friday. Finally, Citigroup dropped their price objective on Elastic from $115.00 to $95.00 and set a “buy” rating for the company in a report on Friday, February 20th. Seventeen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Elastic currently has a consensus rating of “Moderate Buy” and a consensus target price of $96.17.

Insider Buying and Selling

In other Elastic news, CFO Navam Welihinda sold 1,046 shares of Elastic stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $74.51, for a total transaction of $77,937.46. Following the completion of the sale, the chief financial officer owned 123,874 shares of the company’s stock, valued at approximately $9,229,851.74. The trade was a 0.84% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Ashutosh Kulkarni sold 5,000 shares of Elastic stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $74.60, for a total value of $373,000.00. Following the transaction, the chief executive officer owned 426,901 shares of the company’s stock, valued at $31,846,814.60. The trade was a 1.16% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 61,828 shares of company stock valued at $4,641,010 in the last 90 days. 12.70% of the stock is owned by insiders.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Company beat revenue expectations and reported 18% year‑over‑year revenue growth; management emphasized AI expansion and subscription growth, which supports longer‑term demand assumptions. Elastic Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised forward guidance sharply: FY26 and Q4 EPS guidance well above Street consensus and revenue guidance roughly in line — a sign the company expects stronger profitability going forward (this is a bullish catalyst if execution continues). Elastic Reports Third Quarter Fiscal 2026 Financial Results
• Neutral Sentiment: Detailed materials and call transcripts were published (earnings deck and conference call transcripts) — useful for investors who want to dig into non‑GAAP vs GAAP items, margin drivers, and AI product commentary. Q3 2026 Earnings Call Transcript
• Negative Sentiment: Market reaction focused on an apparent earnings/methodology gap: some reports showed adjusted profits above estimates while GAAP/other EPS metrics missed — this disconnect likely triggered selling despite the revenue beat. Elastic Q3 Results and Transcript (MarketBeat)
• Negative Sentiment: Multiple sell‑side firms cut price targets this morning (Canaccord, Wells Fargo, Truist, Piper Sandler, Oppenheimer, Barclays), reducing near‑term analyst support and dragging sentiment lower. The coordinated downgrades are a primary driver of the intraday selloff. Analyst price target updates (Benzinga)
• Negative Sentiment: News coverage highlights that shares fell sharply despite beating revenue estimates — suggesting investors are focused on margins, EPS presentation, and the quick profit‑taking after recent gains. Elastic shares tumble despite beating third quarter estimates

Institutional Investors Weigh In On Elastic

A number of institutional investors have recently modified their holdings of the business. Geneos Wealth Management Inc. acquired a new position in Elastic in the 2nd quarter worth about $31,000. Aster Capital Management DIFC Ltd grew its stake in Elastic by 206.1% in the 4th 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 purchased a new stake in Elastic in the 4th quarter worth $49,000. Quarry LP raised its position in Elastic by 16,200.0% during the fourth quarter. Quarry LP now owns 652 shares of the company’s stock worth $49,000 after acquiring an additional 648 shares during the period. Finally, Empowered Funds LLC purchased a new stake in Elastic during the 4th quarter worth approximately $62,000. 97.03% of the stock is currently 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.