Elastic (NYSE:ESTC) Issues Q2 2027 Earnings Guidance

Elastic (NYSE:ESTC) issued an update on its second quarter 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.800-0.820 for the period, compared to the consensus EPS estimate of 0.660. The company issued revenue guidance of $486.0 million-$487.0 million, compared to the consensus revenue estimate of $483.2 million. Elastic also updated its FY 2027 guidance to 3.290-3.370 EPS.

Elastic Trading Up 5.8%

Shares of NYSE ESTC traded up $4.63 during mid-day trading on Thursday, hitting $83.88. The stock had a trading volume of 4,973,406 shares, compared to its average volume of 2,082,244. The business has a 50 day moving average price of $66.94 and a two-hundred day moving average price of $58.59. Elastic has a 1 year low of $42.05 and a 1 year high of $96.07. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The firm has a market cap of $8.72 billion, a P/E ratio of 23.96, a price-to-earnings-growth ratio of 20.06 and a beta of 0.98.

Elastic (NYSE:ESTC) last announced its earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.58 by $0.12. Elastic had a negative return on equity of 1.82% and a net margin of 21.14%.The company had revenue of $478.11 million during the quarter, compared to the consensus estimate of $469.75 million. 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 anticipate that Elastic will post 0.24 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. TD Cowen raised their price target on Elastic from $55.00 to $70.00 and gave the stock a “hold” rating in a research note on Tuesday. Truist Financial upped their price target on Elastic from $80.00 to $100.00 and gave the stock a “buy” rating in a research note on Thursday, August 20th. Royal Bank Of Canada raised their price objective on Elastic from $70.00 to $87.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Canaccord Genuity Group decreased their price target on shares of Elastic from $90.00 to $80.00 and set a “buy” rating on the stock in a research note on Friday, May 29th. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Elastic in a research note on Friday, June 26th. Seventeen equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.41.

Insider Buying and Selling

In other Elastic news, CFO Navam Welihinda sold 12,961 shares of the business’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $785,566.21. Following the completion of the transaction, the chief financial officer directly owned 209,254 shares in the company, valued at approximately $12,682,884.94. The trade was a 5.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 Elastic stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $574,885.85. Following the completion of the transaction, the insider directly owned 128,439 shares in the company, valued at $7,784,687.79. This represents a 6.88% decrease in their ownership of the stock. 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 have sold 110,099 shares of company stock valued at $6,673,100 over the last three months. Corporate insiders own 12.70% of the company’s stock.

Elastic News Summary

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Quarterly earnings beat estimates: Elastic reported adjusted earnings of $0.70 per share, surpassing the $0.58 consensus estimate, while revenue of $478.11 million exceeded expectations of $469.75 million. The earnings and revenue beats support the bullish reaction, although the company’s return on equity remained negative at 1.82%. Elastic Press Release
• Positive Sentiment: Momentum-focused investor interest: Zacks identified Elastic as a top-ranked momentum stock, potentially reinforcing demand for the shares following their strong recent performance. Zacks Momentum Stock Article
• Positive Sentiment: Analyst support: Wells Fargo reportedly expects Elastic’s stock to rise, while Cantor Fitzgerald issued a favorable outlook, adding to the positive sentiment surrounding the company. Wells Fargo Elastic Analyst Outlook Cantor Fitzgerald Elastic Forecast
• Neutral Sentiment: Mixed analyst targets: Rosenblatt reaffirmed a “buy” rating with an $83 price target, while DA Davidson raised its target to $80 but maintained a “neutral” rating. These targets suggest analysts see limited near-term upside after the recent rally. Rosenblatt Elastic Rating
• Neutral Sentiment: Another analyst roundup described sentiment toward Elastic and other technology stocks as neutral. Analyst Neutrality Report

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ESTC. Geneos Wealth Management Inc. purchased a new stake in shares of Elastic in the second quarter worth about $31,000. Aster Capital Management DIFC Ltd raised 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 worth $42,000 after acquiring an additional 371 shares during the period. Kestra Advisory Services LLC purchased a new position in Elastic in the 4th quarter valued at about $49,000. Quarry LP increased its position in shares of Elastic by 16,200.0% during the fourth quarter. Quarry LP now owns 652 shares of the company’s stock worth $49,000 after purchasing an additional 648 shares in the last quarter. Finally, Empowered Funds LLC acquired a new stake in shares of Elastic in the fourth quarter valued at about $62,000. Hedge funds and other institutional investors own 97.03% of the company’s stock.

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.