Elastic Announces Q1 EPS of 60c, Exceeding Consensus Estimate of 42c
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
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Financial Performance
- Q1 Revenue: Elastic reported a revenue of $415 million for the first quarter, exceeding the consensus estimate of $397.3 million.
- CEO Statement: Ash Kulkarni, the CEO, highlighted the company's excellent performance in Q1, noting that they surpassed the high end of their guidance across all metrics.
Growth Drivers
- Technology Demand: The growth was attributed to the ongoing demand for Elastic's differentiated technology.
- Sales Execution: The solid execution by the sales team played a crucial role in achieving these results.
Market Trends
- AI Influence: The CEO emphasized that the rise of AI is significantly influencing technology decisions, which aligns with Elastic's offerings.
- Value Proposition: The strong performance of Elastic's Search AI Platform demonstrates its value to customers, reinforcing the company's market position.
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Analyst Views on ESTC
Wall Street analysts forecast ESTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ESTC is 101.14 USD with a low forecast of 75.00 USD and a high forecast of 130.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
16 Buy
10 Hold
0 Sell
Moderate Buy
Current: 65.930
Low
75.00
Averages
101.14
High
130.00
Current: 65.930
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.
Elastic (NYSE: ESTC) Launches Agent Builder to Simplify AI Agent Development
- Comprehensive Agent Builder: Elastic's newly launched Agent Builder provides developers with a complete set of capabilities to quickly build secure, reliable, context-driven AI agents, significantly enhancing enterprise data search and analysis capabilities.
- Seamless Microsoft Integration: Agent Builder's native MCP and A2A protocol support enables seamless deployments within Microsoft Foundry and Microsoft Agent Framework, enhancing users' ability to build context-rich AI agents.
- Workflow Functionality Extension: Elastic also introduced Elastic Workflows (tech preview), allowing agents built with Agent Builder to reliably take action across systems, closing the reliability gap in AI automation.
- Model Agnosticism and Compatibility: Agents developed with Agent Builder are model-agnostic and compatible with managed model-as-a-service providers, including cloud hyperscalers, ensuring broad applicability and flexibility.
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Elastic (NYSE:ESTC) Launches Agent Builder for Enterprise AI Agent Development
- AI Agent Development: Elastic's newly launched Agent Builder provides developers with a comprehensive set of capabilities to quickly build secure, reliable, context-driven AI agents, significantly enhancing the efficiency and accuracy of enterprise data processing.
- Context-Driven Intelligence: Built on Elasticsearch, Agent Builder effectively extracts enterprise context from unstructured data sources, enabling teams to reason more accurately and deliver better outcomes, thereby improving the quality of business decisions.
- Workflow Functionality: Elastic also introduced Elastic Workflows (tech preview), allowing agents built with Agent Builder to reliably execute actions across systems, addressing the reliability gap in AI automation and facilitating the transition from pilot projects to real-world applications.
- Compatibility and Availability: Agent Builder is now available in Elastic Cloud Serverless and included in the Enterprise Tier of Elastic Cloud Hosted, ensuring existing customers can seamlessly access this new functionality to enhance their AI agent development capabilities.
Continue Reading