Companies /Technology

Elastic N.V

NYSE: ESTC Software - Application
$89.58
▼ $2.81 (−3.04%) today
Markets closed · 1:36am ET

Q2 2026 Earnings

Reported Nov 20, 2025, 4:07pm ET · SEC source
$0.64
Beat +11.09%
EPS · est. $0.58
$423.5M
Beat +1.24%
Revenue · est. $418.3M
+4.9%
Beating market
ESTC vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%+14%Nov 20Nov 21report 4:07pm ETearnings+1.1%−6.3%
−7%0+7%+14%Nov 20Nov 21earnings+1.1%−6.3%
ESTC −6.3%S&P 500 +1.1%
−7%0+7%+14%Nov 20Nov 21report 4:07pm ETearnings+1.1%−6.3%
−7%0+7%+14%Nov 20Nov 21earnings+1.1%−6.3%
ESTC −6.3%NASDAQ +1.1%
0+9%+18%Nov 19Nov 28report 4:07pm ETearnings+4.8%−3.2%
0+9%+18%Nov 19Nov 28earnings+4.8%−3.2%
ESTC −3.2%S&P 500 +4.8%
0+9%+18%Nov 19Nov 28report 4:07pm ETearnings+5.9%−3.2%
0+9%+18%Nov 19Nov 28earnings+5.9%−3.2%
ESTC −3.2%NASDAQ +5.9%
−14.67%
Day of report
−1.38%
Next session
+1.50%
One week
+9.65%
30 days

S&P 500 over the same 30 days: +4.76%.

Did ESTC Beat Earnings? Q2 2026 Results

Elastic posted a solid fiscal second quarter, beating Wall Street expectations on both the top and bottom lines as its cloud business continued to gain momentum. The search AI company reported non-GAAP diluted EPS of $0.64, clearing the $0.58 consensus estimate by 11.09%, while revenue rose 15.9% year-over-year to $423.48 million, edging past the $418.30 million consensus by 1.24%. The clearest driver behind the quarter was Elastic Cloud, which grew 22% year-over-year to $205.65 million and now accounts for 49% of total revenue, reflecting the company's deepening transition toward cloud-delivered subscriptions. Current remaining performance obligations climbed 17% to $971.47 million, pointing to durable demand ahead. Despite the beat, shares fell sharply after hours, with investors focused on the pace of growth deceleration across key metrics. Management raised full-year fiscal 2026 revenue guidance by $18 million to a midpoint of roughly $1.72 billion, representing 16% growth, and guided Q3 revenue to a range of $437 million to $439 million with non-GAAP EPS of $0.63 to $0.65.

Key Takeaways
  • Elastic Cloud revenue grew 22% YoY, driven by strong Annual Elastic Cloud growth of 27%
  • AI positively impacting all areas of the business
  • Net Expansion Rate of approximately 112%
  • Customer count with ACV greater than $100K exceeded 1,600, up from over 1,420 a year ago
  • Current remaining performance obligations grew 17% YoY to $971 million

“Q2 was an outstanding quarter for Elastic. We beat the high end of our guidance across all metrics. Our strength was driven by robust growth across the company with AI positively impacting all areas of our business.”

Elastic CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026 (ending January 31, 2026): Total revenue expected between $437 million and $439 million (15% YoY growth at midpoint); sales-led subscription revenue between $364 million and $366 million (17% YoY growth at midpoint); non-GAAP operating margin of approximately 17.5%; non-GAAP diluted EPS between $0.63 and $0.65. For full-year FY2026 (ending April 30, 2026): Total revenue raised to between $1.715 billion and $1.721 billion (16% YoY growth at midpoint), up $18 million from prior guidance; sales-led subscription revenue between $1.417 billion and $1.423 billion (18% YoY growth at midpoint); non-GAAP operating margin of approximately 16.25%; non-GAAP diluted EPS between $2.40 and $2.46.

ESTC YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$200.0M$400.0M$365.4M$423.5MRevenue$272.2M$321.5MGross Profit$-59,166,667$-8,236,000Operating Income
$0$200.0M$400.0MRevenueGross ProfitOperating Income

ESTC Revenue by Segment

Other Subscription$192.0M+12.0%
Annual Elastic Cloud$156.9M+27.0%
Monthly Elastic Cloud$48.8M+7.0%
Services$25.8M

Figures from SEC filings and company reports. Not investment advice.