Analysis of Investment Prospects for Elastic N.V. Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ESTC?
Source: Yahoo Finance
- Strong Financial Performance: Elastic N.V. reported $450 million in revenue for Q3 FY26, an 18% year-over-year increase, with subscription revenue up 19%, indicating accelerated enterprise adoption despite a more than 35% decline in stock price since the investment was initiated.
- Improving Profitability: The company achieved a slight positive GAAP operating income of $1 million, while non-GAAP operating income rose to $83 million with an 18.6% margin, demonstrating the effectiveness of its scalable SaaS model.
- Cash Flow Volatility Risk: Although RPO increased to over $1.65 billion, indicating strong future demand, adjusted free cash flow fell to $54 million from $99 million a year earlier, primarily due to higher deferred acquisition costs and a decline in deferred revenue.
- Market Positioning Outlook: Elastic is increasingly positioned as a critical AI infrastructure layer for search and contextual data retrieval, and as cash flow stabilizes and AI skepticism normalizes, it is expected to achieve a significant rerating from depressed levels.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ESTC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 46.430
Low
75.00
Averages
101.14
High
130.00
Current: 46.430
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.
Analysis of Investment Prospects for Elastic N.V. Stock
- Strong Financial Performance: Elastic N.V. reported $450 million in revenue for Q3 FY26, an 18% year-over-year increase, with subscription revenue up 19%, indicating accelerated enterprise adoption despite a more than 35% decline in stock price since the investment was initiated.
- Improving Profitability: The company achieved a slight positive GAAP operating income of $1 million, while non-GAAP operating income rose to $83 million with an 18.6% margin, demonstrating the effectiveness of its scalable SaaS model.
- Cash Flow Volatility Risk: Although RPO increased to over $1.65 billion, indicating strong future demand, adjusted free cash flow fell to $54 million from $99 million a year earlier, primarily due to higher deferred acquisition costs and a decline in deferred revenue.
- Market Positioning Outlook: Elastic is increasingly positioned as a critical AI infrastructure layer for search and contextual data retrieval, and as cash flow stabilizes and AI skepticism normalizes, it is expected to achieve a significant rerating from depressed levels.
See More
Everpure and MP Materials See Active Options Trading
- Everpure Options Volume: Everpure Inc (Ticker: P) recorded an options trading volume of 15,065 contracts, equivalent to approximately 1.5 million shares, representing about 58.1% of its average daily trading volume of 2.6 million shares over the past month, indicating a significant increase in market interest.
- High Strike Call Activity: Within Everpure, the $85 strike call option expiring on May 15, 2026, has seen 5,355 contracts traded today, representing around 535,500 underlying shares, suggesting heightened investor expectations for future price appreciation.
- MP Materials Options Volume: MP Materials Corp (Ticker: MP) experienced an options trading volume of 33,477 contracts, translating to approximately 3.3 million shares, or about 57.5% of its average daily trading volume of 5.8 million shares over the past month, reflecting strong market activity for the stock.
- MP High Strike Call Activity: For MP, the $75 strike call option expiring on March 19, 2027, has recorded a trading volume of 4,329 contracts today, representing approximately 432,900 underlying shares, indicating optimistic sentiment among investors regarding MP's future performance.
See More
Elastic Launches Self-Deployable Multilingual Embeddings for Enterprises
- Model Launch: Elastic announced the availability of Jina Embeddings v3 as a self-deployable partner model in the Gemini Enterprise Agent Platform Model Garden, enabling organizations to deploy high-performance retrieval models directly within their own cloud environments, thereby enhancing data processing efficiency.
- Data Sovereignty Assurance: By deploying Jina Embeddings v3 within Google Cloud projects and Virtual Private Clouds (VPCs), enterprises can ensure that sensitive data remains within secure perimeters, making it particularly suitable for regulated industries like the public sector, thus enhancing data security.
- Predictable Pricing Model: Users can pay a flat hourly rate instead of per-token metering, a pricing strategy that not only encourages scalable usage but also effectively reduces costs under high traffic conditions, improving financial control for enterprises.
- Seamless Integration with Existing Services: Jina Embeddings v3 integrates seamlessly with existing Google Cloud services such as BigQuery, Cloud Storage, and IAM, simplifying the technical architecture for enterprises and enhancing overall operational efficiency.
See More
Elastic Partners with Google to Enhance Security Operations
- Partnership Context: Elastic is collaborating with Google to integrate its agentic security operations platform into Google Distributed Cloud, aiming to provide clients with enhanced security analytics, automation, and extended detection and response capabilities, thereby improving data security and sovereignty.
- Product Advantages: Google Distributed Cloud's air-gapped solution offers organizations a fully managed environment that enables secure innovation while addressing stringent sovereignty and compliance requirements, with Elastic's platform providing an additional layer of security.
- Market Demand: Security teams in highly regulated air-gapped environments face challenges in detecting and responding to AI-driven threats, and Elastic's integrated platform is designed to meet these demands, ensuring compliance and data sovereignty.
- Industry Applications: Air-gapped environments are typically found in the public sector and industries such as finance, healthcare, and research, and Elastic's solution helps these sectors overcome security challenges posed by cloud application limitations, enhancing overall security.
See More
Elastic Launches MCP Apps to Enhance Security and Observability Workflows
- Innovative App Launch: Elastic has introduced MCP Apps, providing the first native user interfaces for security and observability workflows within third-party AI tools, enabling teams to act on data directly in environments like Claude and VS Code, thereby enhancing efficiency and reducing tool-switching time costs.
- Accelerated Threat Detection: The Elastic Security MCP App can surface 'silent' threats that do not trigger standard alerts in under an hour, significantly improving analysts' response speed and efficiency, thus acting as a powerful force multiplier for their operations.
- Optimized Interactive Workflows: MCP Apps support real-time interactive views, allowing analysts to triage alerts, discover attacks, and hunt threats directly within conversations, eliminating the need for multiple tool switches and enhancing overall work efficiency.
- Multi-Platform Support: Elastic's MCP Apps are now available in public preview across multiple platforms including Claude, VS Code, and GitHub Copilot, showcasing the company's forward-looking integration strategy in AI tools to meet customer needs in AI-native environments.
See More
Elastic Wins 2026 Google Cloud Partner Award for Data Management & AI
- Award Recognition: Elastic has been awarded the 2026 Google Cloud Partner of the Year in the Marketplace category for Data Management & AI, reflecting its ongoing collaboration with Google Cloud to help customers rapidly develop Generative AI solutions that enhance operational efficiency.
- Integration Advantage: As the only partner natively integrated with Google Vertex AI, Elastic's unified data platform serves as a foundation for Gemini, ensuring accuracy and contextual responses from enterprise data, which significantly boosts AI application performance.
- Innovation Acceleration Tools: The new AI agent for Gemini Enterprise allows development teams to easily build applications available on the Google Cloud Agent Marketplace, while seamless access to Elasticsearch through the Gemini CLI extension and the MCP Toolbox reduces development complexity.
- Bidirectional Collaboration Model: The close partnership between Elastic and Google Cloud ensures native alignment with cloud infrastructure, optimizing the developer experience, and enhancing enterprise AI application retrieval performance through the availability of Jina models on Google Cloud Model Garden.
See More
Analysis of Investment Prospects for Elastic N.V. Stock
- Strong Financial Performance: Elastic N.V. reported $450 million in revenue for Q3 FY26, an 18% year-over-year increase, with subscription revenue up 19%, indicating accelerated enterprise adoption despite a more than 35% decline in stock price since the investment was initiated.
- Improving Profitability: The company achieved a slight positive GAAP operating income of $1 million, while non-GAAP operating income rose to $83 million with an 18.6% margin, demonstrating the effectiveness of its scalable SaaS model.
- Cash Flow Volatility Risk: Although RPO increased to over $1.65 billion, indicating strong future demand, adjusted free cash flow fell to $54 million from $99 million a year earlier, primarily due to higher deferred acquisition costs and a decline in deferred revenue.
- Market Positioning Outlook: Elastic is increasingly positioned as a critical AI infrastructure layer for search and contextual data retrieval, and as cash flow stabilizes and AI skepticism normalizes, it is expected to achieve a significant rerating from depressed levels.
See More
Everpure and MP Materials See Active Options Trading
- Everpure Options Volume: Everpure Inc (Ticker: P) recorded an options trading volume of 15,065 contracts, equivalent to approximately 1.5 million shares, representing about 58.1% of its average daily trading volume of 2.6 million shares over the past month, indicating a significant increase in market interest.
- High Strike Call Activity: Within Everpure, the $85 strike call option expiring on May 15, 2026, has seen 5,355 contracts traded today, representing around 535,500 underlying shares, suggesting heightened investor expectations for future price appreciation.
- MP Materials Options Volume: MP Materials Corp (Ticker: MP) experienced an options trading volume of 33,477 contracts, translating to approximately 3.3 million shares, or about 57.5% of its average daily trading volume of 5.8 million shares over the past month, reflecting strong market activity for the stock.
- MP High Strike Call Activity: For MP, the $75 strike call option expiring on March 19, 2027, has recorded a trading volume of 4,329 contracts today, representing approximately 432,900 underlying shares, indicating optimistic sentiment among investors regarding MP's future performance.
See More
Elastic Launches Self-Deployable Multilingual Embeddings for Enterprises
- Model Launch: Elastic announced the availability of Jina Embeddings v3 as a self-deployable partner model in the Gemini Enterprise Agent Platform Model Garden, enabling organizations to deploy high-performance retrieval models directly within their own cloud environments, thereby enhancing data processing efficiency.
- Data Sovereignty Assurance: By deploying Jina Embeddings v3 within Google Cloud projects and Virtual Private Clouds (VPCs), enterprises can ensure that sensitive data remains within secure perimeters, making it particularly suitable for regulated industries like the public sector, thus enhancing data security.
- Predictable Pricing Model: Users can pay a flat hourly rate instead of per-token metering, a pricing strategy that not only encourages scalable usage but also effectively reduces costs under high traffic conditions, improving financial control for enterprises.
- Seamless Integration with Existing Services: Jina Embeddings v3 integrates seamlessly with existing Google Cloud services such as BigQuery, Cloud Storage, and IAM, simplifying the technical architecture for enterprises and enhancing overall operational efficiency.
See More
Elastic Partners with Google to Enhance Security Operations
- Partnership Context: Elastic is collaborating with Google to integrate its agentic security operations platform into Google Distributed Cloud, aiming to provide clients with enhanced security analytics, automation, and extended detection and response capabilities, thereby improving data security and sovereignty.
- Product Advantages: Google Distributed Cloud's air-gapped solution offers organizations a fully managed environment that enables secure innovation while addressing stringent sovereignty and compliance requirements, with Elastic's platform providing an additional layer of security.
- Market Demand: Security teams in highly regulated air-gapped environments face challenges in detecting and responding to AI-driven threats, and Elastic's integrated platform is designed to meet these demands, ensuring compliance and data sovereignty.
- Industry Applications: Air-gapped environments are typically found in the public sector and industries such as finance, healthcare, and research, and Elastic's solution helps these sectors overcome security challenges posed by cloud application limitations, enhancing overall security.
See More
Elastic Launches MCP Apps to Enhance Security and Observability Workflows
- Innovative App Launch: Elastic has introduced MCP Apps, providing the first native user interfaces for security and observability workflows within third-party AI tools, enabling teams to act on data directly in environments like Claude and VS Code, thereby enhancing efficiency and reducing tool-switching time costs.
- Accelerated Threat Detection: The Elastic Security MCP App can surface 'silent' threats that do not trigger standard alerts in under an hour, significantly improving analysts' response speed and efficiency, thus acting as a powerful force multiplier for their operations.
- Optimized Interactive Workflows: MCP Apps support real-time interactive views, allowing analysts to triage alerts, discover attacks, and hunt threats directly within conversations, eliminating the need for multiple tool switches and enhancing overall work efficiency.
- Multi-Platform Support: Elastic's MCP Apps are now available in public preview across multiple platforms including Claude, VS Code, and GitHub Copilot, showcasing the company's forward-looking integration strategy in AI tools to meet customer needs in AI-native environments.
See More
Elastic Wins 2026 Google Cloud Partner Award for Data Management & AI
- Award Recognition: Elastic has been awarded the 2026 Google Cloud Partner of the Year in the Marketplace category for Data Management & AI, reflecting its ongoing collaboration with Google Cloud to help customers rapidly develop Generative AI solutions that enhance operational efficiency.
- Integration Advantage: As the only partner natively integrated with Google Vertex AI, Elastic's unified data platform serves as a foundation for Gemini, ensuring accuracy and contextual responses from enterprise data, which significantly boosts AI application performance.
- Innovation Acceleration Tools: The new AI agent for Gemini Enterprise allows development teams to easily build applications available on the Google Cloud Agent Marketplace, while seamless access to Elasticsearch through the Gemini CLI extension and the MCP Toolbox reduces development complexity.
- Bidirectional Collaboration Model: The close partnership between Elastic and Google Cloud ensures native alignment with cloud infrastructure, optimizing the developer experience, and enhancing enterprise AI application retrieval performance through the availability of Jina models on Google Cloud Model Garden.
See More
