SAN FRANCISCO - Elastic N.V. (NYSE:ESTC) reported fourth-quarter results that beat analyst expectations, but shares fell 8.8% after the company issued weaker-than-expected first-quarter earnings guidance.
The search and data analytics company posted adjusted earnings per share of $0.61 for the quarter ended April 30, 2026, beating the consensus estimate of $0.56 by $0.05. Revenue reached $451 million, up 16% year-over-year and ahead of the $446.64 million estimate.
However, the company's guidance for the first quarter of fiscal 2027 disappointed, with adjusted EPS projected at $0.57-$0.59 compared to the analyst consensus of $0.63. The midpoint of $0.58 represents a shortfall of $0.05 per share.
For the first quarter, Elastic expects revenue of $469-$470 million, with a midpoint of $469.5 million essentially in line with the consensus estimate of $469.2 million. The company projects a non-GAAP operating margin of approximately 14.0% for the period.
"Elastic delivered a strong finish to the year, beating our guidance across all key metrics," said Ash Kulkarni, CEO. "Organizations are increasingly abandoning fragmented legacy applications to consolidate onto our high-performance platform for search, security, and observability."
For the full fiscal year 2027, Elastic issued revenue guidance of $1.985-$2 billion, with the midpoint of $1.993 billion slightly above the consensus of $1.975 billion. The company expects adjusted EPS of $3.21-$3.29, with the midpoint of $3.25 significantly exceeding the consensus of $2.84.
Sales-led subscription revenue, which excludes Monthly Elastic Cloud, grew 19% year-over-year to $375 million in the fourth quarter. The company's customer count with annual contract value exceeding $100,000 reached over 1,720, up from over 1,510 in the prior year period.
