synopsis

Quarterly adjusted earnings per share of $0.47 and revenue of $388.43 million exceeded the consensus estimates of $0.37 and $380.42 million, respectively.

Elastic N.V. (ESTC) shares fell sharply in Thursday’s extended session after the artificial intelligence (AI)-enabled search company announced better-than-expected quarterly results but issued mixed fiscal year 2026 guidance.

The San Francisco, California-based company reported adjusted earnings per share (EPS) of $0.47 and revenue of $388.43 million for the fourth quarter of the fiscal year 2025.

This compares to the year-ago numbers of $0.21 and $335 million, respectively. 

The quarterly results exceeded the consensus EPS and revenue estimates of $0.37 and $380.42 million, respectively.

Subscription revenue, accounting for 93% of the total revenue, climbed 16%.

CEO Ash Kulkarni said, “Elastic achieved a strong quarter, culminating in a solid finish to the fiscal year.”

“We exceeded guidance across all revenue and profitability metrics, demonstrating our leadership in Search AI as customers continue to build Generative AI applications and consolidate onto our platform.”

Elastic said the total customer count with an annual contract value (ACV) greater than $100,000 was over 1,510, up from 1,460 in the previous quarter. The total subscription customer count increased sequentially to 21,500 from 21,350, and the net expansion rate was about 112%.

Elastic guided second-quarter adjusted EPS to $0.41-$0.43 and revenue to $396 million-$398 million, compared to the consensus estimates of $0.42 and $395.30 million.

The company initiated fiscal year 2026 guidance, modeling adjusted EPS of $2.24-$2.32 and revenue of $1.655 billion-$1.670 billion. Wall Street, on average, estimates EPS of $2.10 and revenue of $1.680 billion, respectively.

On Stocktwits, retail sentiment toward Elastic stock was ‘extremely bullish’ (90/100) by late Thursday, and the message volume was ‘extremely high.’

ESTC sentiment and message volume as of 1:26 a.m. ET, April 30 | source: Stocktwits

Notwithstanding the after-hours slump, a bullish watcher braced for a breakout after a tight trading range of $75-$115 seen for over two years.

Another user said the earnings looked “great.”

Elastic stock plunged 12.09% to $80.90 in Thursday’s after-hours trading, down over 7% year-to-date. 

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