Elastic (NYSE:ESTC) Releases FY 2027 Earnings Guidance

Elastic (NYSE:ESTC) updated its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 3.290-3.370 for the period, compared to the consensus estimate of 2.640. The company issued revenue guidance of $2.0 billion-$2.0 billion, compared to the consensus revenue estimate of $2.0 billion. Elastic also updated its Q2 2027 guidance to 0.800-0.820 EPS.

Elastic Trading Up 5.8%

Shares of Elastic stock opened at $83.88 on Friday. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.45. The company has a fifty day simple moving average of $67.44 and a 200-day simple moving average of $58.76. The stock has a market cap of $8.72 billion, a price-to-earnings ratio of 23.96, a PEG ratio of 19.77 and a beta of 0.98. Elastic has a 12-month low of $42.05 and a 12-month high of $96.07.

Elastic (NYSE:ESTC) last announced its quarterly earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.58 by $0.12. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The firm had revenue of $478.11 million for the quarter, compared to analyst estimates of $469.75 million. During the same period last year, the business earned $0.60 EPS. Elastic’s revenue for the quarter was up 15.2% compared to the same quarter last year. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. On average, equities analysts forecast that Elastic will post 0.24 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Piper Sandler reiterated an “overweight” rating on shares of Elastic in a research report on Friday, June 26th. TD Cowen lifted their price target on Elastic from $55.00 to $70.00 and gave the stock a “hold” rating in a research report on Tuesday. Wall Street Zen downgraded Elastic from a “buy” rating to a “hold” rating in a report on Saturday, June 13th. UBS Group restated a “buy” rating and set a $85.00 target price on shares of Elastic in a research report on Friday, May 29th. Finally, Wolfe Research set a $55.00 target price on shares of Elastic in a report on Friday, May 29th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, Elastic currently has an average rating of “Moderate Buy” and an average target price of $87.41.

Insider Activity

In other news, CRO Mark Eugene Dodds sold 18,439 shares of the business’s stock in a transaction that occurred 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 transaction, the executive owned 298,211 shares of the company’s stock, valued at approximately $18,074,568.71. The trade was a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Carolyn Herzog sold 9,485 shares of the company’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $574,885.85. Following the sale, the insider owned 128,439 shares of the company’s stock, valued at $7,784,687.79. This trade represents a 6.88% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 110,099 shares of company stock worth $6,673,100 over the last quarter. 12.70% of the stock is owned by insiders.

Elastic News Roundup

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Earnings and revenue beat expectations: Elastic reported quarterly EPS of $0.70, above the $0.58 consensus, while revenue reached $478.1 million, up roughly 15% year over year and ahead of estimates near $470 million. Elastic Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Raised outlook substantially: Fiscal 2027 EPS guidance of $3.29–$3.37 is well above the prior consensus of $2.64. Second-quarter EPS guidance of $0.80–$0.82 also exceeds the $0.66 estimate, while quarterly revenue guidance of $486–$487 million is above expectations. The upbeat outlook suggests improving operating leverage and continued demand for Elastic’s search, observability and AI software. Another Day, Another Software Stock Surging 20%
• Positive Sentiment: Cash generation remained solid: Operating cash flow increased to $132 million, and cash and equivalents rose to approximately $882 million, supporting financial flexibility as the company continues investing in growth. Elastic N.V. Stock Rises on Q1 2027 Earnings
• Positive Sentiment: Analyst support continues: Rosenblatt reaffirmed its Buy rating, and DA Davidson raised its price target to $80 from $60, reflecting improved expectations following the results. DA Davidson Raises Elastic Price Target
• Neutral Sentiment: While analyst sentiment is generally constructive, some published price targets remain below the stock’s recent trading level, suggesting valuation and expectations may become more demanding after the rally. Rosenblatt Reaffirms Buy Rating for Elastic
• Negative Sentiment: Third-party trading data indicates that Elastic insiders have recorded sales and no purchases during the past six months. This may temper enthusiasm, although the activity does not offset the immediate impact of the earnings beat and guidance increase. Elastic Insider Trading Activity

Hedge Funds Weigh In On Elastic

Several institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Elastic by 16.5% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 4,826 shares of the company’s stock valued at $364,000 after acquiring an additional 682 shares in the last quarter. Brooklyn Investment Group purchased a new position in Elastic during the fourth quarter worth about $228,000. Investment Research Partners LLC acquired a new stake in Elastic in the fourth quarter valued at about $213,000. Steward Partners Investment Advisory LLC lifted its position in Elastic by 1,788.8% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 2,021 shares of the company’s stock valued at $152,000 after purchasing an additional 1,914 shares during the period. Finally, Itau Unibanco Holding S.A. lifted its holdings in shares of Elastic by 372.5% in the 4th quarter. Itau Unibanco Holding S.A. now owns 1,857 shares of the company’s stock valued at $140,000 after buying an additional 1,464 shares during the period. 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.