Elastic shares nosedive 12% as revenue outlook disappoints

Published 29/05/2025, 21:22
Elastic shares nosedive 12% as revenue outlook disappoints

SAN FRANCISCO - Elastic N.V. (NYSE:ESTC) reported better-than-expected fourth quarter results on Thursday, but shares plunged 12% in after-hours trading as the company’s revenue guidance for the upcoming fiscal year fell short of analyst estimates.

The search and data analytics company posted adjusted earnings per share of $0.47 for the quarter ended April 30, surpassing the consensus forecast of $0.37. Revenue rose 16% year-over-year to $388 million, also beating expectations of $380.53 million.

However, Elastic’s outlook for fiscal 2026 revenue of $1.655 billion to $1.670 billion came in below Wall Street’s projection of $1.69 billion. The midpoint of the guidance range represents 12% growth from fiscal 2025.

"We delivered strong growth, fueled by our sales execution and the persistent demand for our solutions, with our innovation velocity thriving," said CEO Ash Kulkarni in a statement. "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."

For the fourth quarter, Elastic Cloud revenue jumped 23% YoY to $181.5 million. The company’s total customer count with annual contract value over $100,000 grew to more than 1,510, up from over 1,330 a year ago.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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