NYSE:ESTC

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Elastic Surges 17% as AI Demand Drives Strong Growth and Record Customer Additions

Elastic (NYSE: ESTC) shares jumped 17% in premarket trading after the company beat guidance across key metrics and showed accelerating enterprise demand for its AI, security and observability products.

Fiscal Q1 revenue increased 15% year over year to $478 million, while sales-led subscription revenue grew 18%. More importantly, current remaining performance obligations rose 21% to $1.15 billion and total RPO climbed 27%, providing strong visibility into future revenue. Elastic also posted non-GAAP EPS of $0.70 and generated $143 million in adjusted free cash flow.

AI appears to be strengthening Elastic’s growth position. Customers spending more than $100,000 annually increased to over 1,800 from 1,550 a year earlier, with Q1 delivering a record number of net additions to this group. Elastic is expanding its AI capabilities across vector search, cybersecurity and observability and recently announced a collaboration with OpenAI.

The outlook reinforced the positive reaction. Elastic expects FY27 revenue of $1.998–$2.010 billion, roughly 15% growth, while sales-led subscription revenue is projected to grow about 17.4%. Non-GAAP operating margin is expected to reach 19.4%, alongside an adjusted free cash flow margin of approximately 21.5%.

The 17% rally reflects a combination of strong forward indicators, accelerating large-customer adoption, AI-driven demand and improving profitability rather than simply the headline 15% revenue growth.
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Author
The Investor 08-28-26
Elastic Launches $500 Million Share Repurchase Program

Elastic (NYSE: ESTC) announced that its Board of Directors has approved a share repurchase program authorizing the company to buy back up to $500 million of its outstanding ordinary shares. The program has no expiration date and may include open market purchases, private transactions, or other methods.

Chief Financial Officer Navam Welihinda said the move underscores the company’s confidence in its strategy, execution, and financial strength, noting that Elastic’s balance sheet supports both continued investment in growth and shareholder returns.

Elastic, known as “the Search AI Company,” provides an AI-powered search platform used by more than half of the Fortune 500 to transform data into actionable insights across search, observability, and security applications.
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Author
European Investor 10-09-25