Revenue climbed 20% year-over-year (YoY) to $415 million versus the $397.33 million consensus estimate, with the growth quickening from the 16% rate seen for the fourth quarter.
Elastic N.V. (ESTC) stock jumped nearly 17% in Friday’s early premarket trading after the artificial intelligence (AI)-enabled search company reported above-consensus estimates and issued an upbeat forward outlook.
The gains have come despite the futures market pointing to a lower opening for the major U.S. averages on Friday.
If the premarket gains are sustained in the regular session, the stock is eyeing its best day since December 2023.
On Stocktwits, retail sentiment toward Elastic stock improved to ‘extremely bullish’ (88/100) by early Friday, from ‘neutral’ a day ago. The message volume increased to ‘extremely high’ levels.
San Francisco, California-based Elastic reported adjusted earnings per share (EPS) of $0.60 for the first quarter of the fiscal year 2026, up from $0.35 a year ago and exceeding the Fiscal.ai-compiled consensus of $0.42.
Revenue climbed 20% year-over-year (YoY) to $415 million versus the $397.33 million consensus estimate. The revenue growth quickened from the 16% seen for the fourth quarter.
CEO Ash Kulkarni said, “Elastic had an excellent Q1 and a strong start to the fiscal year, surpassing the high end of our guidance across all metrics.”
“With AI now clearly shaping technology decisions, our strong performance directly demonstrates the value that Elastic’s Search AI Platform delivers to our customers.”
The company expects the second-quarter and fiscal year 2026 revenue to be above consensus estimates. The full-year adjusted EPS is also above the analysts’ consensus estimate, but the quarterly guidance fell short of expectations.
Elastic’s stock has gained over 11% year-to-date (YTD). The Koyfin-compiled consensus price target for the stock is $109.65, implying nearly 25% from Thursday’s close.
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