Elastic (NYSE:ESTC) Releases Q2 2027 Earnings Guidance

Elastic (NYSE:ESTC) updated its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.800-0.820 for the period, compared to the consensus EPS estimate of 0.660. The company issued revenue guidance of $486.0 million-$487.0 million, compared to the consensus revenue estimate of $483.2 million. Elastic also updated its FY 2027 guidance to 3.290-3.370 EPS.

Elastic Trading Up 5.8%

Shares of ESTC stock opened at $83.88 on Friday. Elastic has a fifty-two week low of $42.05 and a fifty-two week high of $96.07. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.68 and a current ratio of 1.68. The stock’s fifty day moving average is $67.44 and its two-hundred day moving average is $58.76. The firm has a market capitalization of $8.72 billion, a P/E ratio of 23.96, a PEG ratio of 19.77 and a beta of 0.98.

Elastic (NYSE:ESTC) last released its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.12. The business had revenue of $478.11 million during the quarter, compared to analyst estimates of $469.75 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The company’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.60 earnings per share. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. Research analysts expect that Elastic will post 0.24 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on ESTC shares. Morgan Stanley lowered shares of Elastic from an “overweight” rating to an “equal weight” rating and lowered their price target for the stock from $73.00 to $66.00 in a research report on Tuesday, July 21st. Scotiabank cut their price objective on shares of Elastic from $61.00 to $58.00 and set a “sector perform” rating for the company in a report on Friday, May 29th. Wells Fargo & Company raised their target price on shares of Elastic from $60.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Tuesday. UBS Group restated a “buy” rating and set a $85.00 target price on shares of Elastic in a report on Friday, May 29th. Finally, Barclays upped their price target on Elastic from $68.00 to $94.00 and gave the company an “overweight” rating in a research report on Monday. Seventeen investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $87.41.

Insider Activity

In related news, CRO Mark Eugene Dodds sold 18,439 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total value of $1,117,587.79. Following the completion of the sale, the executive owned 298,211 shares of the company’s stock, valued at approximately $18,074,568.71. This represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ken Exner sold 18,449 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $60.61, for a total transaction of $1,118,193.89. Following the completion of the sale, the insider directly owned 360,037 shares of the company’s stock, valued at $21,821,842.57. This represents a 4.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 110,099 shares of company stock worth $6,673,100. Insiders own 12.70% of the company’s stock.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Earnings and revenue beat expectations: Elastic reported quarterly EPS of $0.70, above the $0.58 consensus, while revenue reached $478.1 million, up roughly 15% year over year and ahead of estimates near $470 million. Elastic Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Raised outlook substantially: Fiscal 2027 EPS guidance of $3.29–$3.37 is well above the prior consensus of $2.64. Second-quarter EPS guidance of $0.80–$0.82 also exceeds the $0.66 estimate, while quarterly revenue guidance of $486–$487 million is above expectations. The upbeat outlook suggests improving operating leverage and continued demand for Elastic’s search, observability and AI software. Another Day, Another Software Stock Surging 20%
• Positive Sentiment: Cash generation remained solid: Operating cash flow increased to $132 million, and cash and equivalents rose to approximately $882 million, supporting financial flexibility as the company continues investing in growth. Elastic N.V. Stock Rises on Q1 2027 Earnings
• Positive Sentiment: Analyst support continues: Rosenblatt reaffirmed its Buy rating, and DA Davidson raised its price target to $80 from $60, reflecting improved expectations following the results. DA Davidson Raises Elastic Price Target
• Neutral Sentiment: While analyst sentiment is generally constructive, some published price targets remain below the stock’s recent trading level, suggesting valuation and expectations may become more demanding after the rally. Rosenblatt Reaffirms Buy Rating for Elastic
• Negative Sentiment: Third-party trading data indicates that Elastic insiders have recorded sales and no purchases during the past six months. This may temper enthusiasm, although the activity does not offset the immediate impact of the earnings beat and guidance increase. Elastic Insider Trading Activity

Institutional Trading of Elastic

Hedge funds and other institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. acquired a new position in Elastic in the second quarter valued at approximately $31,000. Aster Capital Management DIFC Ltd raised its position in Elastic by 206.1% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company’s stock valued at $42,000 after purchasing an additional 371 shares during the period. Kestra Advisory Services LLC purchased a new stake in Elastic in the fourth quarter valued at $49,000. Quarry LP lifted its stake in shares of Elastic by 16,200.0% in the 4th quarter. Quarry LP now owns 652 shares of the company’s stock valued at $49,000 after purchasing an additional 648 shares during the last quarter. Finally, Empowered Funds LLC acquired a new position in shares of Elastic in the 4th quarter valued at $62,000. Institutional investors and hedge funds own 97.03% of the company’s stock.

Elastic Company Profile

Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.