Key Highlights
- Elastic shares surged 22% to $101.95 in pre-market trading following impressive Q1 results
- The company reported adjusted EPS of $0.70, surpassing analyst expectations of $0.58
- Quarterly revenue reached $478 million, reflecting 15% year-over-year growth and exceeding the $470 million forecast
- Management increased full-year EPS outlook to $3.29-$3.37, outpacing the $3.24 Wall Street estimate
- Analyst Thomas Blakey from Cantor lifted his price target from $91 to $100 while maintaining a Neutral stance
Shares of Elastic were climbing 22% to $101.95 during Friday’s pre-market session following the company’s impressive fiscal first-quarter performance and enhanced full-year projections.
The company delivered adjusted earnings of $0.70 per share, exceeding Wall Street’s $0.58 estimate by a notable $0.12 margin. Quarterly revenue totaled $478 million, marking a 15% increase from the prior year and surpassing the Street’s $470 million projection.
This performance positions Elastic among several software companies delivering strong results this earnings season.
Salesforce, Okta, CrowdStrike, and Workday have similarly exceeded expectations in recent sessions. This collective strength has helped alleviate concerns regarding AI-driven disruption in the software industry, which experienced volatility earlier in 2026 before stabilizing.
Prior to Friday’s rally, Elastic shares had gained 11% year-to-date.
Upgraded Full-Year Outlook
Management increased fiscal 2027 adjusted EPS guidance to a range of $3.29 to $3.37, with a $3.33 midpoint that exceeds the Street’s $3.24 consensus estimate.
Full-year revenue projections now stand at $2.00 to $2.01 billion, with the $2.005 billion midpoint slightly ahead of the $1.99 billion analyst forecast.
Looking to the second quarter, Elastic anticipates revenue between $486 and $487 million, implying approximately 14.9% year-over-year expansion at the midpoint. The company projects adjusted EPS of $0.80 to $0.82 for the period.
Chief Executive Ash Kulkarni characterized the quarter as “a strong start to fiscal 2027,” highlighting that performance exceeded internal projections across all major metrics.
Current remaining performance obligations increased 21% year-over-year to $1.153 billion, while total remaining performance obligations expanded 27% to $1.854 billion.
Customer Base Expansion Continues
The company welcomed more than 80 new customers with annual contract values surpassing $100,000 during the quarter, expanding this segment to over 1,800 total customers.
Sales-led subscription revenue, excluding Monthly Elastic Cloud offerings, increased 18% year-over-year to $399 million.
Kulkarni emphasized record sequential net customer additions in the $100K+ ACV category as evidence of sustained demand for the company’s Search AI, Security, and Observability solutions.
Following the quarterly release, Cantor’s Thomas Blakey elevated his ESTC price target from $91 to $100.
However, Blakey maintained his Neutral rating despite the increased target. He acknowledged that AI-driven demand is boosting adoption of Elastic’s search and security offerings but indicated he would prefer to see “a clearer path to sustained acceleration” before adopting a more bullish stance.
Elastic stock was trading up 22% at $101.95 during Friday’s pre-market hours.
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