Street Calls of the Week
SAN FRANCISCO - Elastic (NYSE:ESTC), a $9.4 billion enterprise search and observability company with robust financials and a 75% gross profit margin, has extended its AutoOps monitoring and management service to enterprise customers with self-managed deployments at no additional cost, the company announced Thursday. According to InvestingPro analysis, Elastic maintains a strong financial health rating, with several positive indicators available to subscribers.
The service, previously available only to Elastic Cloud users, allows self-managed enterprise customers to access real-time diagnostics, performance tuning, and issue detection through Elastic Cloud while maintaining data sovereignty. The expansion comes as Elastic demonstrates strong business momentum, with revenue growing at 17.4% year-over-year.
AutoOps works through a lightweight integration that securely streams operational metadata to Elastic Cloud for processing while customer data remains within the self-managed environment. The service helps teams identify and resolve issues such as ingestion bottlenecks, shard imbalance, and mapping errors before they impact performance.
"Teams working in self-managed environments can now access the same benefits of AutoOps experienced by Elastic Cloud users," said Ajay Nair, general manager of Platform at Elastic.
The service aims to reduce operational overhead by eliminating the need for dedicated monitoring infrastructure. It also provides resource optimization insights to help reduce hardware costs by identifying underutilized nodes and inefficient indices.
Oz Levy, data operations manager at Tipalti, reported that AutoOps has simplified their troubleshooting process: "When we started using AutoOps, it provided actionable intelligence that changed the game; we no longer have to hunt for answers, they get delivered to us right away."
AutoOps is the first in a planned series of Elastic Cloud connected services for self-managed environments, according to the company’s press release statement. The service is currently available for Enterprise subscription users.
In other recent news, Elastic NV has reported strong first-quarter earnings, leading to significant interest from analysts. The company achieved a total revenue growth of 20%, surpassing investor expectations of 17% and exceeding its guidance by 4.3%. This robust performance has prompted several firms to raise their price targets for Elastic. UBS increased its target to $125, maintaining a Buy rating, while Oppenheimer raised its target to $119 with an Outperform rating, highlighting broad-based strength across all regions and product areas. TD Cowen adjusted its target to $105, noting the company’s strong quarterly performance, particularly in cloud revenues. RBC Capital also raised its target to $125, citing Elastic’s strong start to the year and increased fiscal year 2026 guidance. Stifel set a new target of $134, following Elastic’s impressive first-quarter results and positive guidance for the upcoming periods. These developments reflect a positive outlook from analysts regarding Elastic’s future performance.
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