Companies /Technology

Elastic N.V

NYSE: ESTC Software - Application
$89.58
▼ $2.81 (−3.04%) today
Markets closed · 11:16pm ET

Q3 2026 Earnings

Reported Feb 26, 2026, 4:12pm ET · SEC source
$0.73
Beat +12.97%
EPS · est. $0.65
$449.9M
Beat +2.61%
Revenue · est. $438.4M
+1.2%
Beating market
ESTC vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%Feb 26Feb 27report 4:12pm ETearnings−0.6%−7.5%
−6%0+6%Feb 26Feb 27earnings−0.6%−7.5%
ESTC −7.5%S&P 500 −0.6%
−6%0+6%Feb 26Feb 27report 4:12pm ETearnings−0.4%−7.5%
−6%0+6%Feb 26Feb 27earnings−0.4%−7.5%
ESTC −7.5%NASDAQ −0.4%
−6%0+6%Feb 25Mar 6report 4:12pm ETearnings−2.3%−5.6%
−6%0+6%Feb 25Mar 6earnings−2.3%−5.6%
ESTC −5.6%S&P 500 −2.3%
−6%0+6%Feb 25Mar 6report 4:12pm ETearnings−1.4%−5.6%
−6%0+6%Feb 25Mar 6earnings−1.4%−5.6%
ESTC −5.6%NASDAQ −1.4%
−15.44%
Day of report
+1.63%
Next session
+3.19%
One week
−3.99%
30 days

S&P 500 over the same 30 days: −5.20%.

Did ESTC Beat Earnings? Q3 2026 Results

Elastic posted a strong fiscal third quarter, with non-GAAP diluted EPS of $0.73 beating the $0.65 consensus estimate by 12.97% and revenue of $449.88 million topping expectations by 2.61% while rising 17.7% year over year. The primary engine behind the beat was Elastic Cloud, where annual cloud revenue surged 27% year over year to $168.56 million, now representing 37% of total revenue and signaling sustained enterprise appetite for the company's AI-oriented data platform. The quarter also marked a meaningful profitability shift, with Elastic posting GAAP net income of $7.75 million compared to a net loss of $17.06 million in the year-ago period, while non-GAAP operating margin expanded to 18.6% from 16.8%. Current remaining performance obligations grew 19% to $1.06 billion, reinforcing near-term revenue visibility. Looking ahead, management guided Q4 revenue of $445 million to $447 million, representing approximately 15% year-over-year growth, with full-year fiscal 2026 revenue expected between $1.73 billion and $1.74 billion, though some analysts have flagged growing competitive pressure from AI lab integrations as a longer-term concern.

Key Takeaways
  • Annual Elastic Cloud revenue grew 27% YoY, driving subscription growth acceleration
  • Sales-led subscription revenue grew 21% YoY, outpacing total revenue growth
  • Large deal momentum and competitive displacements across all business areas
  • Customer count with ACV greater than $100K grew to over 1,660 from over 1,460 in Q3 FY25
  • Net Expansion Rate of approximately 112%
  • Non-GAAP operating margin expanded to 18.6% from 16.8% year-over-year

“Elastic delivered yet another outstanding quarter, beating the high end of guidance across all key metrics and showcasing the power of our platform and our business model.”

Elastic CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY26 (ending April 30, 2026): Total revenue expected between $445 million and $447 million (15% YoY growth at midpoint, 13% constant currency). Sales-led subscription revenue expected between $371 million and $373 million (18% YoY growth at midpoint). Non-GAAP operating margin expected at approximately 14.5%. Non-GAAP diluted EPS expected between $0.55 and $0.57. For full fiscal year 2026: Total revenue expected between $1.734 billion and $1.736 billion (17% YoY growth at midpoint, 15% constant currency). Sales-led subscription revenue expected between $1.434 billion and $1.436 billion (20% YoY growth at midpoint). Non-GAAP operating margin expected at approximately 16.3%. Non-GAAP diluted EPS expected between $2.50 and $2.54. Guidance assumes exchange rates of 1 Euro = 1.175 USD and 1 GBP = 1.345 USD.

ESTC YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$200.0M$400.0M$382.1M$449.9MRevenue$284.9M$343.4MGross Profit$286,626$611,000Operating Income$3.2M$7.8MNet Income
$0$200.0M$400.0MRevenueGross ProfitOperating IncomeNet Income

ESTC Revenue by Segment

Other Subscription$207.2M+16.0%
Annual Elastic Cloud$168.6M+27.0%
Monthly Elastic Cloud$49.9M+6.0%
Services$24.2M

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