Elastic (ESTC) AI Stock Analysis

• Market Cap: $7.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: 16.98%
• EPS Growth: -265.85%
• Country: US
• Employees: 3,403
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.64
• Shares Outstanding: 105,372,800
• 10 Day Avg. Volume: 2,984,090
• 30 Day Avg. Volume: 1,959,645
• PEG Ratio: 0.31
• Price to Book (P/B): 9.64
• Price to Sales (P/S): 6.02
• P/FCF Ratio: 34.13
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.41
• Enterprise Value/Gross Profit: 7.16
• Enterprise Value/Ebitda: 245.67
• 1Y Price Target: $98.45
• Price Target Upside: 40.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $74.00 ▲(5.80% Upside)

Elastic's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, technical analysis indicates bearish momentum, and valuation metrics reflect profitability challenges. The company's strategic advancements in AI and security are promising, but the stock's current technical and valuation conditions present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Expansion in AI and Security

Investments in AI and security enhance Elastic's competitive edge, driving significant customer commitments and positioning the company for future growth.

Improved Financial Stability

Reduced leverage enhances financial stability, providing Elastic with greater flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder Elastic's ability to reinvest in the business and could impact long-term financial health and shareholder returns.

Billings Lagging Other Metrics

Lagging billings growth could indicate potential future revenue challenges, affecting cash flow and the ability to fund strategic initiatives.

Impact of U.S. Government Shutdown

External disruptions like government shutdowns can impact operations and revenue, highlighting Elastic's vulnerability to macroeconomic factors.

Elastic Business Overview & Revenue Model

Company Description

Elastic N.V., a search company, delivers technology solutions designed to run in public or private clouds in multi-cloud environments. It primarily offers Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as perform search, analysis, and visualization. The company's Elastic Stack product portfolio comprises Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; Elastic Agent that offers integrated host protection and central management services; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. It also provides software solutions on the Elastic Stack that address cases, including app search, workplace search, logging, metrics, application performance management, and synthetic monitoring. The company's platform solutions provide new capabilities that helps users to combine the benefits of the Elastic Stack. The company was incorporated in 2012 and is headquartered in Mountain View, California.

How the Company Makes Money

Elastic generates revenue primarily through a subscription-based model, offering various tiers of paid services that provide enhanced features and support. Key revenue streams include subscriptions for Elastic Cloud, which is the company's managed service offering, as well as on-premises software licenses and professional services such as training and consulting. The company also benefits from a growing user base that adopts its open-source products, leading to increased demand for premium features and support. Significant partnerships with cloud service providers and integration with other enterprise software systems further enhance its revenue potential, enabling Elastic to reach a broader market and drive sales growth.

Elastic Financial Statement Overview

Summary

Elastic shows strong revenue growth and gross profit margins, but faces profitability challenges with negative net income and EBIT margins. The balance sheet indicates improved leverage, enhancing financial stability. Cash flow management is effective, though growth has slightly declined.

Income Statement

Elastic shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.75%. Gross profit margins are strong at 75.54% TTM, indicating efficient cost management. However, the company is still facing profitability challenges, as evidenced by negative net profit and EBIT margins. The net profit margin is -6.79% TTM, reflecting ongoing losses.

Balance Sheet

The balance sheet indicates a significant improvement in financial stability. The debt-to-equity ratio has decreased to 0.02 TTM, showing reduced leverage. However, the return on equity remains negative at -9.36% TTM, highlighting profitability issues. The equity ratio is stable, suggesting a solid asset base.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -3.71% TTM. The operating cash flow to net income ratio is 0.33, indicating a reasonable conversion of earnings to cash. The free cash flow to net income ratio is nearly 1, showing effective cash management despite net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.48B	1.27B	1.07B	862.37M	608.49M
Gross Profit	1.10B	937.24M	772.36M	630.18M	447.44M
EBITDA	6.05M	-78.63M	-171.49M	-157.34M	-104.29M
Net Income	-108.11M	61.72M	-236.16M	-203.85M	-129.43M
Balance Sheet
Total Assets	2.59B	2.24B	1.74B	1.64B	973.17M
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.08B	915.21M	860.95M	400.81M
Total Debt	595.01M	593.70M	594.23M	594.22M	28.18M
Total Liabilities	1.67B	1.50B	1.34B	1.23B	522.34M
Stockholders Equity	927.23M	738.18M	398.90M	415.43M	450.83M
Cash Flow
Free Cash Flow	261.82M	145.31M	32.98M	-1.75M	18.32M
Operating Cash Flow	266.17M	148.76M	35.66M	5.67M	22.55M
Investing Cash Flow	-118.67M	-287.96M	-272.95M	-127.27M	-1.52M
Financing Cash Flow	40.95M	40.05M	17.47M	602.13M	77.26M

Elastic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESTC, the sentiment is Negative. The current price of 69.94 is below the 20-day moving average (MA) of 85.38, below the 50-day MA of 85.38, and below the 200-day MA of 87.42, indicating a bearish trend. The MACD of -3.89 indicates Positive momentum. The RSI at 27.17 is Positive, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESTC.

Elastic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	71 Outperform	$6.44B	11.85	15.23%	―	9.46%	34.09%
PEGA	69 Neutral	$9.22B	36.81	51.96%	0.17%	17.00%	120.21%
U	64 Neutral	$18.17B	―	-13.64%	―	-8.23%	48.57%
CVLT	62 Neutral	$5.44B	69.44	32.87%	―	22.02%	-55.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ESTC	61 Neutral	$7.37B	―	-12.84%	―	16.98%	-265.85%
KC	51 Neutral	$3.73B	-23.76	-15.91%	―	24.15%	55.53%

Elastic Corporate Events

Elastic N.V. Earnings Call Highlights Strong Growth

Elastic N.V. Reports Strong Performance Amid Strategic Advancements

Elastic N.V. Reports Strong Q2 2026 Growth

Elastic N.V., known as the Search AI Company, integrates search technology with artificial intelligence to provide solutions in search, observability, and security across various industries. In its second quarter of fiscal 2026, Elastic reported a revenue of $423 million, marking a 16% increase from the previous year. The company also raised its full-year revenue guidance by $18 million, highlighting strong customer commitments. Key financial metrics include a 17% year-over-year increase in subscription revenue and a 22% rise in Elastic Cloud revenue. Despite a GAAP operating loss of $8 million, the company achieved a non-GAAP operating income of $70 million. Elastic’s strategic advancements include launching new AI-driven products and acquiring Jina AI to enhance its search capabilities. Looking ahead, Elastic expects continued growth, projecting a 15% year-over-year revenue increase for the next quarter, supported by ongoing product innovation and customer expansion.

Elastic Approves $29.3M Equity Award for CEO

On October 13, 2025, Elastic N.V.’s board approved a special performance-based equity award for CEO Ashutosh Kulkarni, valued at $29.3 million. This award aims to align Kulkarni’s interests with shareholders and incentivize his leadership in executing the company’s growth strategy, emphasizing substantial shareholder value creation. The award, tied to rigorous share price and performance goals, underscores the company’s commitment to transformational growth and securing a leading position in the Generative AI market.

The most recent analyst rating on (ESTC) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on Elastic stock, see the ESTC Stock Forecast page.

Elastic Announces $500 Million Share Repurchase Program

On October 9, 2025, Elastic‘s Board of Directors approved a $500 million share repurchase program, reflecting confidence in the company’s business strategy and execution. The program, which has no expiration date, allows Elastic to buy back shares based on market conditions and other factors, aiming to enhance shareholder value while maintaining investment in its business.

The most recent analyst rating on (ESTC) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Elastic stock, see the ESTC Stock Forecast page.

Elastic Approves Key Proposals at Shareholder Meeting

On September 30, 2025, Elastic N.V. held its annual general meeting of shareholders in Amsterdam, where ten proposals were voted on and passed. Key decisions included the appointment of Ashutosh Kulkarni and Steven Schuurman as directors, adoption of the company’s annual accounts, and the authorization of the board to issue shares and repurchase ordinary shares, reflecting strong shareholder support for the company’s strategic directions.

The most recent analyst rating on (ESTC) stock is a Hold with a $95.00 price target. To see the full list of analyst forecasts on Elastic stock, see the ESTC Stock Forecast page.

Elastic N.V. Surpasses Q1 Expectations with Strong Growth

Elastic N.V. Reports Strong Q1 Earnings Amidst Complex Macro Environment

Elastic N.V. Maintains Stability Amid Unchanged Risk Factors: Vigilance Advised for Stakeholders

Elastic N.V. continues to face the same risk factors previously disclosed, with no significant changes reported. This stability in risk factors suggests that the company has not encountered new threats or challenges that could materially impact its operations. However, stakeholders should remain vigilant, as the absence of new risks does not eliminate the potential for existing risks to evolve. Continuous monitoring of these factors is essential to ensure the company’s resilience in a dynamic market environment.

Elastic N.V. Reports Strong Q1 Fiscal 2026 Growth

Elastic N.V., a leader in search technology and artificial intelligence, specializes in transforming data into actionable insights across search, observability, and security solutions. The company, known for its Elastic Search AI Platform, serves a broad spectrum of industries, including more than half of the Fortune 500 companies.

Elastic Director Sohaib Abbasi to Step Down

On August 22, 2025, Sohaib Abbasi announced he would not seek re-election as a non-executive director at Elastic‘s upcoming annual general meeting. Elastic reported a strong financial performance for Q1 fiscal 2026, with a 20% year-over-year revenue increase to $415 million. The company highlighted significant growth in its Elastic Cloud and subscription revenues, alongside key product innovations and strategic partnerships. Elastic’s advancements in AI and cloud services are expected to enhance its market position and offer substantial value to stakeholders.

The most recent analyst rating on (ESTC) stock is a Hold with a $91.00 price target. To see the full list of analyst forecasts on Elastic stock, see the ESTC Stock Forecast page.