Elastic (ESTC) Stock Jumps 22% After Q1 Earnings Beat and Raised Guidance

TLDR

• Elastic stock jumped 22% to $101.95 pre-market after beating Q1 earnings estimates
• Adjusted EPS came in at $0.70, topping the $0.58 analyst consensus
• Revenue hit $478 million, up 15% year-over-year, above the $470 million estimate
• Full-year EPS guidance raised to $3.29-$3.37, above the $3.24 consensus
• Cantor analyst Thomas Blakey raised his price target to $100 from $91 but kept a Neutral rating

Elastic stock was trading up 22% to $101.95 in pre-market trading on Friday after the company posted a strong fiscal Q1 beat and raised its full-year outlook.

Elastic N.V., ESTC

Adjusted earnings per share came in at $0.70, beating the analyst consensus of $0.58 by $0.12. Revenue reached $478 million, up 15% year-over-year, clearing the $470 million estimate Wall Street had penciled in.

It adds Elastic to a growing list of software names that have topped expectations this week.

ELASTIC $ESTC Q1’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $478M (Est. $470M) 🟢; +15% YoY
🔹 Adj. EPS: $0.70 (Est. $0.58) 🟢; +17% YoY
🔹 Current RPO: $1.15B; +21% YoY
🔹 Adjusted FCF: $143M

FY27 Guide:
🔹 Revenue: $2.00B-$2.01B (Est. $1.99B) 🟢
🔹 Adj. EPS: $3.29-$3.37 (Est. $3.24)…

— Wall St Engine (@wallstengine) August 27, 2026

Salesforce, Okta, CrowdStrike, and Workday also beat Wall Street targets in recent days. The run has helped ease some nerves around AI disruption in the software sector, which had a rough start to 2026 before recovering.

Elastic stock was already up 11% for the year heading into Friday’s session.

Strong Guidance Lift

For the full fiscal year 2027, Elastic guided to adjusted EPS of $3.29 to $3.37, with a midpoint of $3.33. That tops the $3.24 analyst consensus.

Full-year revenue guidance came in at $2.00 to $2.01 billion, with a midpoint of $2.005 billion, just above the $1.99 billion estimate.

For Q2, the company expects revenue of $486 to $487 million, representing roughly 14.9% year-over-year growth at the midpoint. Adjusted EPS guidance for the quarter is $0.80 to $0.82.

CEO Ash Kulkarni called it “a strong start to fiscal 2027,” noting the company beat its own guidance across all key metrics.

Current remaining performance obligations rose 21% year-over-year to $1.153 billion. Total remaining performance obligations climbed 27% to $1.854 billion.

Customer Growth Holds Up

Elastic added over 80 new customers with annual contract values exceeding $100,000 during the quarter, bringing that cohort to over 1,800 total customers.

Sales-led subscription revenue, which excludes Monthly Elastic Cloud, grew 18% year-over-year to $399 million.

Kulkarni pointed to record quarter-over-quarter net customer additions in the over $100K ACV cohort as a sign of durable demand across the company’s Search AI, Security, and Observability platforms.

Cantor analyst Thomas Blakey raised his price target on ESTC to $100 from $91 following the results.

Despite the upgrade to his target, Blakey kept a Neutral rating on the stock. He said the results show AI demand is driving uptake of Elastic’s search and security tools, but said he would “await a clearer path to sustained acceleration” before turning more positive.

Elastic shares were up 22% to $101.95 in pre-market trading on Friday morning.

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