Elastic (NYSE:ESTC) Posts Earnings Results, Beats Expectations By $0.05 EPS

Elastic (NYSE:ESTC) released its quarterly earnings results on Thursday. The company reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.05, FiscalAI reports. The business had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. Elastic had a net margin of 21.14% and a negative return on equity of 2.02%. The business’s revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.47 EPS. Elastic updated its FY 2027 guidance to 3.210-3.290 EPS and its Q1 2027 guidance to 0.570-0.590 EPS.

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

• Elastic said it beat guidance across every key metric in Q4 and closed FY2026 with 16% revenue growth and 14.8% non-GAAP operating margin, while full-year revenue grew 17% with a 16.4% operating margin.
• Customer commitments accelerated meaningfully, with CRPO growth reaching 20% and RPO growth accelerating to 28%, which management said supports a revenue acceleration setup for FY2027.
• The company highlighted strong demand for AI, search, observability, and security, including a record Q4 for $1 million deals and more than 240 customers spending over $1 million annually; over 600 customers in the $100K+ ACV cohort are now using Elastic AI capabilities.
• Elastic reaffirmed a bullish FY2027 outlook, guiding to $1.985 billion-$2.0 billion in revenue, ~19% non-GAAP operating margin, and 21.5% adjusted free cash flow margin, while also raising its FY2029 operating margin target to ~25%.
• Management said Q4 revenue was affected by a shift toward more cloud commitments, especially in the U.S. public sector, and also noted that the company will keep adding sales capacity while expecting net headcount growth in FY2027.

Elastic Trading Up 12.5%

NYSE ESTC opened at $64.82 on Friday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.72. Elastic has a 52 week low of $42.05 and a 52 week high of $96.07. The stock has a market capitalization of $6.71 billion, a PE ratio of 18.52, a price-to-earnings-growth ratio of 109.01 and a beta of 0.88. The firm has a 50 day moving average of $50.38 and a two-hundred day moving average of $62.83.

Insider Activity at Elastic

In other Elastic news, insider Ken Exner sold 4,310 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $52.28, for a total transaction 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. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction of $208,544.92. Following the transaction, the insider owned 85,335 shares of the company’s stock, valued at $4,461,313.80. This trade represents a 4.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 38,188 shares of company stock worth $1,996,469 over the last ninety days. 12.70% of the stock is currently owned by insiders.

Institutional Trading of Elastic

Institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. purchased a new stake in shares of Elastic during the 2nd quarter worth approximately $31,000. Aster Capital Management DIFC Ltd lifted its position in shares of Elastic by 206.1% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock worth $42,000 after buying an additional 371 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Elastic during the 4th quarter worth approximately $49,000. Quarry LP lifted its position in shares of Elastic by 16,200.0% during the 4th quarter. Quarry LP now owns 652 shares of the company’s stock worth $49,000 after buying an additional 648 shares during the last quarter. Finally, Empowered Funds LLC purchased a new stake in shares of Elastic during the 4th quarter worth approximately $62,000. Hedge funds and other institutional investors own 97.03% of the company’s stock.

Analyst Upgrades and Downgrades

ESTC has been the topic of a number of research analyst reports. Citigroup boosted their price target on shares of Elastic from $95.00 to $104.00 and gave the company a “buy” rating in a research note on Friday. Zacks Research downgraded shares of Elastic from a “hold” rating to a “strong sell” rating in a research note on Thursday. TD Cowen reduced their price target on shares of Elastic from $65.00 to $60.00 and set a “hold” rating on the stock in a research note on Tuesday. Rosenblatt Securities reissued a “buy” rating and issued a $110.00 price target on shares of Elastic in a research note on Tuesday. Finally, Stifel Nicolaus set a $65.00 price objective on shares of Elastic in a report on Friday. Eighteen analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $80.04.

Elastic News Summary

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

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.