Elastic N.V
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.63%.
Did ESTC Beat Earnings? Q1 2026 Results
Elastic delivered a standout first quarter of fiscal 2026, posting non-GAAP diluted EPS of $0.60 against a consensus estimate of $0.42, a beat of 43.40%, while revenue of $415.29 million topped expectations by 4.52% and grew 19.5% year-over-year. The primary engine behind the results was accelerating cloud adoption, with Elastic Cloud revenue climbing 24% year-over-year to $195.77 million and now accounting for 47% of total revenue, up from 45% a year ago. Profitability improved sharply as well, with non-GAAP operating margin expanding to 15.7% from 10.7% in the prior-year period, and adjusted free cash flow reaching $116.04 million, good for a 28% margin. Customers with annual contract value above $100,000 grew to over 1,550 from over 1,370 a year ago, reflecting healthy enterprise momentum. Analysts have since raised price targets, with some viewing the company's 14% full-year revenue growth guidance, which calls for revenue of $1.68 billion to $1.69 billion, as conservative given Elastic's expanding AI client base, now exceeding 2,200 paying clients.
- 20% year-over-year revenue growth driven by subscription and cloud adoption
- Elastic Cloud revenue grew 24% YoY, reaching 47% of total revenue
- Annual Elastic Cloud grew 31% year-over-year
- Sales-led subscription revenue grew 22% year-over-year
- Net Expansion Rate of approximately 112%
- Customers with ACV greater than $100,000 grew to over 1,550 from over 1,370 YoY
- Non-GAAP operating margin expanded to 15.7% from 10.7% in the year-ago quarter
- Adjusted free cash flow margin of 28%, up from 18% a year ago
“Elastic had an excellent Q1 and a strong start to the fiscal year surpassing the high end of our guidance across all metrics. Our growth was supported by the ongoing demand for our highly differentiated technology, and our sales team's solid execution. With AI now clearly shaping technology decisions, our strong performance directly demonstrates the value that the Elastic Search AI platform delivers to our customers.”
Elastic CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY26 (ending October 31, 2025): Total revenue expected between $415 million and $417 million, representing 14% year-over-year growth at the midpoint (14% in constant currency). Non-GAAP operating margin expected approximately 16%. Non-GAAP diluted EPS expected between $0.56 and $0.58. For full fiscal year 2026 (ending April 30, 2026): Total revenue expected between $1.679 billion and $1.689 billion, representing 14% year-over-year growth at the midpoint (13% in constant currency). Non-GAAP operating margin expected approximately 16%. Non-GAAP diluted EPS expected between $2.29 and $2.35. Guidance assumes exchange rates of 1 Euro = 1.16 USD and 1 GBP = 1.35 USD.
ESTC YoY Financials
ESTC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.