Elastic (NYSE:ESTC) Issues Earnings Results

Elastic (NYSE:ESTC) issued its quarterly earnings data 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. Elastic had a negative return on equity of 2.34% and a negative net margin of 5.04%.The business had revenue of $450.68 million for the quarter, compared to the consensus estimate of $446.66 million. During the same period in the prior year, the business posted $0.47 earnings per share. The company’s quarterly revenue was up 16.0% compared to the same quarter last year. 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 Price Performance

NYSE:ESTC opened at $57.48 on Friday. The stock has a 50 day moving average price of $50.20 and a 200 day moving average price of $62.82. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.82 and a current ratio of 1.82. The stock has a market cap of $5.95 billion, a PE ratio of -71.85, a P/E/G ratio of 101.99 and a beta of 0.88. Elastic has a one year low of $42.05 and a one year high of $96.07.

Insider Activity at Elastic

In other news, CRO Mark Eugene Dodds sold 3,723 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $52.28, for a total transaction of $194,638.44. Following the completion of the transaction, the executive directly owned 152,563 shares in the company, valued at $7,975,993.64. This trade represents a 2.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Jane E. Bone sold 887 shares of the firm’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $52.28, for a total value of $46,372.36. Following the transaction, the chief accounting officer owned 42,284 shares of the company’s stock, valued at approximately $2,210,607.52. This represents a 2.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 38,188 shares of company stock valued at $1,996,469 over the last 90 days. Corporate insiders own 12.70% of the company’s stock.

Institutional Investors Weigh In On Elastic

A number of institutional investors have recently added to or reduced their stakes in ESTC. AQR Capital Management LLC boosted its stake in shares of Elastic by 153.4% during the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock worth $569,201,000 after acquiring an additional 4,567,720 shares in the last quarter. FIL Ltd increased its holdings in shares of Elastic by 36.9% during the 4th quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock worth $273,753,000 after buying an additional 977,578 shares during the last quarter. RGM Capital LLC increased its holdings in Elastic by 2.4% in the 4th quarter. RGM Capital LLC now owns 1,710,069 shares of the company’s stock valued at $129,008,000 after purchasing an additional 40,371 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in Elastic by 48.7% in the 4th quarter. Alyeska Investment Group L.P. now owns 1,655,567 shares of the company’s stock valued at $124,896,000 after purchasing an additional 542,064 shares in the last quarter. Finally, State Street Corp increased its holdings in Elastic by 3.0% in the 4th quarter. State Street Corp now owns 1,606,407 shares of the company’s stock valued at $121,187,000 after purchasing an additional 46,449 shares in the last quarter. Hedge funds and other institutional investors own 97.03% of the company’s stock.

More Elastic News

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Elastic beat fiscal Q4 estimates, 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. Article Title
• Positive Sentiment: The company also issued Q1 FY2027 EPS guidance of $0.57 to $0.59, above the Street’s $0.50 estimate, suggesting near-term earnings momentum. Article Title
• Positive Sentiment: Elastic highlighted stronger cash generation, including $152.7 million in operating cash flow and a larger contracted backlog, which may support the long-term growth story. Article Title
• Neutral Sentiment: Several analysts remain constructive, with Rosenblatt reiterating a Buy and JPMorgan still at Overweight, though JPMorgan cut its price target to $80 from $99, reflecting a more cautious near-term stance. Article Title
• Negative Sentiment: Investors appear disappointed by the company’s forward view, which implies mid-teens revenue growth in fiscal 2027 after a strong year, raising concerns that growth could be moderating. Article Title
• Negative Sentiment: The stock also saw pressure as some reports noted the market’s reaction to the earnings release and guidance was negative, with shares falling after the print despite the beat. Article Title

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Oppenheimer dropped their target price on Elastic from $100.00 to $85.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Morgan Stanley dropped their target price on Elastic from $80.00 to $73.00 and set an “overweight” rating on the stock in a report on Monday, March 2nd. Rosenblatt Securities reaffirmed a “buy” rating and set a $110.00 target price on shares of Elastic in a report on Tuesday. Piper Sandler dropped their target price on Elastic from $110.00 to $85.00 and set an “overweight” rating on the stock in a report on Friday, February 27th. Finally, JPMorgan Chase & Co. dropped their target price on Elastic from $99.00 to $80.00 and set an “overweight” rating on the stock in a report on Wednesday. Eighteen investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $86.96.

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.