Profusa partners with NVIDIA to develop AI-powered biomarker portal
Investing.com -- Shares of Elastic N.V. (NYSE:ESTC) jumped 19% in premarket trading on Friday after the enterprise search and AI software company posted quarterly results that topped Wall Street expectations and issued guidance ahead of consensus.
The strong performance prompted Jefferies to raise its price target to $125 from $110 while reiterating a “buy” rating.
Elastic reported fiscal first-quarter adjusted earnings of $0.60 per share, beating the $0.42 consensus, while revenue climbed 20% year-on-year to $415 million, above estimates of $397 million.
Cloud revenue accelerated 24% to $196 million, with subscription sales making up 94% of total revenue.
Chief executive Ash Kulkarni in a statement said growth was fueled by “ongoing demand for our highly differentiated technology” and stronger sales execution, adding that AI is increasingly driving technology decisions among customers.
The Dutch-American company guided second-quarter revenue between $415 million and $417 million and adjusted EPS of $0.56–$0.58, both above analyst forecasts.
For fiscal 2026, Elastic projected revenue of $1.68 billion and adjusted EPS as high as $2.35, ahead of consensus.
Jefferies analyst Brent Thill called the results a “top-tier beat,” noting strength in security and generative AI use cases, where Elastic added more than 2,200 customers in the quarter, including over 330 with contracts above $100,000.
He also highlighted improving sales execution and competitive wins against incumbents in security.
Still, Thill pointed out that the updated full-year outlook implies 13-14% growth, slower than the 20% pace in the first quarter and below some faster-growing software peers.