Elastic N.V. (NYSE:ESTC) delivered a quarter that should have won over Wall Street. An earnings beat, growing enterprise adoption of its AI-powered search and cloud platform, and guidance pointing to continued revenue growth through fiscal 2027.
The AI-fueled beat led shares spiking more than 15% in after-hours trading, but DA Davidson chose to remain Neutral on the stock. On August 28, the firm raised its price target on Elastic NV (NYSE:ESTC) shares to $100 from $80 while maintaining a Neutral rating.
For first quarter of fiscal 2027 ending July 31, 2026, the Search AI Company announced total revenues of $478 million, an increase of 15% year-over-year. Total subscription revenue also rose by the same percentage year-over-year to $449 million. Sales-led subscription revenue was $399 million, an increase of 18% year-over-year.
Sales-led subscription revenue is a reflection of Elastic's progress with its larger customers, a segment management is explicitly focused on to improve for achieving its long-term financial and product milestones. The company also reported adding more than 80 customers with annual contract value above $100,000, bringing the total to over 1,800.
Firm Da Davidson particularly mentioned the company's improving demand for Elastic's Security solution backed by a heightened threat landscape.
#estc
The AI-fueled beat led shares spiking more than 15% in after-hours trading, but DA Davidson chose to remain Neutral on the stock. On August 28, the firm raised its price target on Elastic NV (NYSE:ESTC) shares to $100 from $80 while maintaining a Neutral rating.
For first quarter of fiscal 2027 ending July 31, 2026, the Search AI Company announced total revenues of $478 million, an increase of 15% year-over-year. Total subscription revenue also rose by the same percentage year-over-year to $449 million. Sales-led subscription revenue was $399 million, an increase of 18% year-over-year.
Sales-led subscription revenue is a reflection of Elastic's progress with its larger customers, a segment management is explicitly focused on to improve for achieving its long-term financial and product milestones. The company also reported adding more than 80 customers with annual contract value above $100,000, bringing the total to over 1,800.
Firm Da Davidson particularly mentioned the company's improving demand for Elastic's Security solution backed by a heightened threat landscape.
#estc
19 hours ago
