Elastic (ESTC) stock saw major gains on Friday following the release of the artificial intelligence (AI) search company’s Fiscal Q1 2026 earnings report. This report started with adjusted earnings per share of 60 cents, which was well above Wall Street’s estimate of 42 cents. It was also up 71.43% year-over-year from 35 cents.
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Elastic reported revenue of $415.29 million during the quarter, another beat compared to analysts’ estimate of $397.16 million. The company’s revenue was also up 20% year-over-year from $347.42 million. This was fueled by a 20% increase in subscription revenue and a 24% increase in Elastic Cloud revenue. CEO Ash Kulkarni noted that the company’s results surpassed “the high end of our guidance across all metrics.”
Elastic stock was up 5.9% in pre-market trading on Friday, following a 5.39% rally on Thursday. The company’s shares have fallen 11.39% year-to-date but remain up 15.23% over the past 12 months.
Elastic Guidance
Elastic provided a guidance update in its latest earnings report. For Fiscal Q2 2026, the company expects adjusted EPS of 56 cents to 58 cents, alongside revenue of $415 million to $417 million. For comparison, Wall Street expects Elastic to report adjusted EPS of 59 cents and revenue of $414.38 million during that quarter.
Elastic also updated its Fiscal 2026 guidance in its most recent earnings report. The company expects adjusted EPS of $2.29 to $2.35, on revenue of $1.679 billion to $1.689 billion for the year. To put that in perspective, analysts’ estimates include adjusted EPS of $2.32 on revenue of $1.68 billion.
Is Elastic Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Elastic is Strong Buy, based on 21 Buy and four Hold ratings over the past three months. With that comes an average ESTC stock price target of $110.09, representing a potential 25.4% upside for the shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
