Key Highlights
- Elastic shares surged 22% to $101.95 in pre-market hours following impressive Q1 results
- The company reported adjusted EPS of $0.70, exceeding analyst expectations of $0.58
- Quarterly revenue reached $478 million, representing 15% year-over-year growth and surpassing the $470 million forecast
- Management elevated full-year EPS outlook to a range of $3.29-$3.37, ahead of the $3.24 Street estimate
- Thomas Blakey from Cantor upgraded his price target to $100 from $91 while maintaining a Neutral stance
Shares of Elastic climbed 22% to $101.95 during pre-market hours Friday following the company’s impressive fiscal first-quarter performance and upwardly revised annual projections.
The company delivered adjusted earnings of $0.70 per share, surpassing analyst projections of $0.58 by a substantial $0.12 margin. Quarterly revenue totaled $478 million, marking a 15% increase from the prior year and exceeding Wall Street’s $470 million forecast.
This performance positions Elastic among an expanding group of software companies exceeding market expectations this earnings season.
Salesforce, Okta, CrowdStrike, and Workday have similarly delivered results above consensus in recent sessions. This string of positive reports has helped alleviate concerns surrounding artificial intelligence disruption in the software industry, which experienced a challenging beginning to 2026 before staging a comeback.
Prior to Friday’s trading session, Elastic stock had already gained 11% year-to-date.
Upgraded Annual Projections
Management provided fiscal year 2027 adjusted EPS guidance ranging from $3.29 to $3.37, with a midpoint of $3.33. This comfortably exceeds the analyst consensus of $3.24.
Annual revenue projections landed between $2.00 and $2.01 billion, with the $2.005 billion midpoint slightly above the Street’s $1.99 billion expectation.
Looking to the second quarter, management anticipates revenue between $486 and $487 million, translating to approximately 14.9% year-over-year expansion at the midpoint. Adjusted earnings per share for Q2 are projected at $0.80 to $0.82.
CEO Ash Kulkarni characterized the performance as “a strong start to fiscal 2027,” emphasizing that the company exceeded its internal projections across all critical metrics.
Current remaining performance obligations increased 21% year-over-year to $1.153 billion. Total remaining performance obligations expanded 27% to $1.854 billion.
Customer Base Expansion Continues
During the quarter, Elastic secured more than 80 new customers with annual contract values above $100,000, pushing this customer segment beyond 1,800 total accounts.
Sales-led subscription revenue, excluding Monthly Elastic Cloud, expanded 18% year-over-year to $399 million.
Kulkarni highlighted record sequential net customer additions in the $100K-plus ACV category as evidence of sustained demand for the company’s Search AI, Security, and Observability offerings.
Following these results, Cantor analyst Thomas Blakey increased his ESTC price target to $100 from his previous $91 projection.
However, despite the elevated price target, Blakey maintained his Neutral rating on the shares. He acknowledged that the results demonstrate AI-driven demand is boosting adoption of Elastic’s search and security solutions, though indicated he would prefer to see “a clearer path to sustained acceleration” before adopting a more bullish position.
Elastic stock traded up 22% at $101.95 during Friday’s pre-market session.
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