ESTC Earnings Surge: Elastic Stock Soars on Q1 Beat & Upgraded Outlook

Elastic just delivered a knockout quarter—crushing estimates and sending shares skyrocketing. The search and analytics powerhouse posted numbers that left Wall Street buzzing, proving once again that real tech execution still moves markets.

Breaking Down the Beat

Revenue surged past expectations, fueled by enterprise adoption and cloud expansion. The company’s platform—spanning search, observability, and security—is clearly resonating with big clients tired of legacy solutions that can’t keep pace.

Guidance Gets a Boost

Management didn’t just rest on Q1 wins—they raised full-year projections, signaling confidence in sustained demand. It’s a bold move in an uncertain macro environment, but Elastic’s leadership seems to believe their momentum is more than just a flash in the pan.

Street Reaction: Cheers & Skepticism

Analysts upgraded targets on the news, though some questioned whether the rally has legs. After all, this is the same market that once thought Pets.com was a good idea—so maybe take the euphoria with a grain of salt. But for now, Elastic’s riding high—and showing no signs of slowing down.

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Elastic reported revenue of $415.29 million during the quarter, another beat compared to analysts’ estimate of $397.16 million. The company’s revenue was also up 20% year-over-year from $347.42 million. This was fueled by a 20% increase in subscription revenue and a 24% increase in Elastic Cloud revenue. CEO Ash Kulkarni noted that the company’s results surpassed “the high end of our guidance across all metrics.”

Elastic stock was up 5.9% in pre-market trading on Friday, following a 5.39% rally on Thursday. The company’s shares have fallen 11.39% year-to-date but remain up 15.23% over the past 12 months.

Elastic Guidance

Elastic provided a guidance update in its latest earnings report. For Fiscal Q2 2026, the company expects adjusted EPS of 56 cents to 58 cents, alongside revenue of $415 million to $417 million. For comparison, Wall Street expects Elastic to report adjusted EPS of 59 cents and revenue of $414.38 million during that quarter.

Elastic also updated its Fiscal 2026 guidance in its most recent earnings report. The company expects adjusted EPS of $2.29 to $2.35, on revenue of $1.679 billion to $1.689 billion for the year. To put that in perspective, analysts’ estimates include adjusted EPS of $2.32 on revenue of $1.68 billion.

Is Elastic Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Elastic is Strong Buy, based on 21 Buy and four Hold ratings over the past three months. With that comes an average ESTC stock price target of $110.09, representing a potential 25.4% upside for the shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.