ESTC Q4 Earnings Surpass Expectations, Revenues Increase Y/Y

Elastic N.V. ESTC reported fourth-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 8.9%. The figure increased 29.8% year over year.

Elastic’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.

Revenues of $451 million beat the Zacks Consensus Estimate by 1%. The figure rose 16% year over year on a reported basis and 14% on a constant-currency (cc) basis. Customers with ACV above $100,000 ended the quarter at more than 1,720, underscoring continued enterprise traction.

Elastic’s Q4 in Details

Subscription revenues remained the company's core barometer of health, totaling $422.4 million, up 16.8% year over year and representing 94% of total revenues. Within that, sales-led subscription revenues (subscription revenues excluding Monthly Elastic Cloud) rose 19% year over year to $374.7 million, reflecting strength in larger, sales-driven engagements.

Cloud continued to expand as a meaningful contributor. Annual Elastic Cloud revenues were $169.6 million, up 26% year over year. Monthly Elastic Cloud revenues were $47.8 million, up 3% year over year, keeping total Elastic Cloud at $217.4 million, or 48% of total revenues. Professional services revenues were $28.2 million, up 6% year over year and representing 6.3% of total revenues.

Non-GAAP gross margin was 77.5% (up roughly 50 bps year over year) and non-GAAP operating margin was 14.8% (down approximately 50 bps).

Current remaining performance obligations were $1.203 billion, up 20% year over year, while total remaining performance obligations reached $1.982 billion, up 28% year over year.

Elastic’s Balance Sheet and Cash Flow

Cash, cash equivalents and marketable securities totaled $1.37 billion as of April 30, 2026, against total debt of $570.9 million.

Operating cash flow was $152.7 million, and adjusted free cash flow was $149.8 million, implying a 33% adjusted free cash flow margin for the quarter.

In the fourth quarter of fiscal 2026, Elastic repurchased about 0.7 million shares at an average price of $61.28 for roughly $40 million. In fiscal 2026, the company repurchased about 4.4 million shares at an average price of $76.91, representing approximately $340 million in aggregate repurchases under its $500 million authorization.

ESTC’s Outlook Implies Continued Growth Into FY27

For the first quarter of fiscal 2027, Elastic expects total revenues of $469-$470 million (up 13.1% year over year at midpoint) and sales-led subscription revenues of $392-$393 million (up 15.9% year over year at midpoint). The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 revenues is pegged at $469.58 million, indicating a year-over-year increase of 13.1%.

Non-GAAP operating margin is expected to be about 14.0%, with non-GAAP earnings projected at 57-59 cents per share. The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 earnings is pegged at 65 cents per share, indicating a year-over-year increase of 8.3%.

For fiscal 2027, management expects total revenues to be in the range of $1.985-$2 billion (up 14.6% year over year at midpoint) and sales-led subscription revenues to be in the band of $1.673-$1.688 billion (up 16.9% year over year at midpoint), alongside an expected non-GAAP operating margin of about 19.0% and non-GAAP earnings of $3.21-$3.29 per share.

The Zacks Consensus Estimate for ESTC’s fiscal 2027 revenues is pegged at $1.74 billion, indicating a year-over-year increase of 17%. The Zacks Consensus Estimate for ESTC’s fiscal 2027 earnings is pegged at $2.53, indicating a year-over-year increase of 24%.

ESTC’s Zacks Rank and Stocks to Consider

Currently, Elastic carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials AMAT, Celestica CLS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Applied Materials have rallied 74.9% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.

Shares of Celestica have gained 19.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.

Amphenol shares have jumped 9.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.

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