Elastic Q4 Earnings Beat Expectations with Significant Cloud Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Strong Performance Growth: Elastic achieved total revenue of $451 million in Q4 FY 2026, representing a 16% year-over-year growth with a non-GAAP operating margin of 14.8%, indicating sustained improvement in both revenue and profitability, which is expected to enhance future investments and market confidence.
- Cloud Business Transformation: The company reported sales-led subscription revenue of $375 million in Q4, with a significant increase in the proportion of cloud commitments, demonstrating Elastic's successful transition to a cloud service provider, which will lay a solid foundation for future revenue growth.
- Optimistic Future Outlook: Management expects total revenue for FY 2027 to range between $1.985 billion and $2 billion, with non-GAAP diluted earnings per share projected between $0.57 and $0.59, reflecting the company's confidence in future growth and positive response to market demand.
- Ongoing Shareholder Returns: In Q4, Elastic repurchased approximately $40 million worth of shares, totaling around 4.4 million shares repurchased, indicating the company's commitment to enhancing shareholder value while also reflecting its strong cash flow position.
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Analyst Views on ESTC
Wall Street analysts forecast ESTC stock price to rise
26 Analyst Rating
16 Buy
10 Hold
0 Sell
Moderate Buy
Current: 57.610
Low
75.00
Averages
101.14
High
130.00
Current: 57.610
Low
75.00
Averages
101.14
High
130.00
About ESTC
Elastic NV is a Netherlands-based data analytics company. The Company’s platform, which is available as both a hosted, managed service across public clouds as well as self-managed software, allows its customers to find insights from large amounts of data and take action. The Company offers three search-powered solutions - Enterprise Search, Observability, and Security - that are built into the platform, which is built on the Elastic Stack, a set of software products that ingest data from any source, in any format, and perform search, analysis, and visualization of that data. The Company helps organizations, their employees, and their customers find what they need, while keeping mission-critical applications running smoothly, and protecting against cyber threats. The Company generates revenue primarily from sales of subscriptions to its platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Elastic (ESTC) Q4 2026 Earnings Transcript
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- Positive Future Guidance: The company anticipates total revenue for Q1 FY2027 to be between $469 million and $470 million, slightly above the consensus of $469.18 million, representing a year-over-year growth of 13.1%, showcasing ongoing growth potential.
- Subscription Revenue Growth: Expected sales-led subscription revenue is projected to be between $392 million and $393 million, reflecting a year-over-year growth of 15.9%, indicating strong demand and market share performance for Elastic.
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- Strong Performance Growth: Elastic achieved total revenue of $451 million in Q4 FY 2026, representing a 16% year-over-year growth with a non-GAAP operating margin of 14.8%, indicating sustained improvement in both revenue and profitability, which is expected to enhance future investments and market confidence.
- Cloud Business Transformation: The company reported sales-led subscription revenue of $375 million in Q4, with a significant increase in the proportion of cloud commitments, demonstrating Elastic's successful transition to a cloud service provider, which will lay a solid foundation for future revenue growth.
- Optimistic Future Outlook: Management expects total revenue for FY 2027 to range between $1.985 billion and $2 billion, with non-GAAP diluted earnings per share projected between $0.57 and $0.59, reflecting the company's confidence in future growth and positive response to market demand.
- Ongoing Shareholder Returns: In Q4, Elastic repurchased approximately $40 million worth of shares, totaling around 4.4 million shares repurchased, indicating the company's commitment to enhancing shareholder value while also reflecting its strong cash flow position.
See More
Elastic (ESTC) Q4 2026 Earnings Transcript
See More
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- American Eagle Outfitters Sales Decline: American Eagle reported a 2% drop in comparable sales for Q1, missing the 3.1% growth forecast by analysts, and provided disappointing Q2 operating income guidance of $45 million to $50 million, below the $65.3 million consensus, leading to an approximately 11% decline in stock price.
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- Positive Future Guidance: The company anticipates total revenue for Q1 FY2027 to be between $469 million and $470 million, slightly above the consensus of $469.18 million, representing a year-over-year growth of 13.1%, showcasing ongoing growth potential.
- Subscription Revenue Growth: Expected sales-led subscription revenue is projected to be between $392 million and $393 million, reflecting a year-over-year growth of 15.9%, indicating strong demand and market share performance for Elastic.
- Improved Profitability: The anticipated non-GAAP operating margin for FY2027 is approximately 19.0%, with diluted EPS expected between $3.21 and $3.29, both exceeding market expectations, reflecting ongoing improvements in profitability and cash flow management.
See More
