Elastic (NYSE:ESTC) Releases Q2 2027 Earnings Guidance

Key Points

• Elastic issued above-consensus Q2 FY2027 guidance, forecasting EPS of $0.80–$0.82 versus the $0.66 analyst estimate and revenue of $486–$487 million versus $483.2 million. Full-year EPS guidance was set at $3.29–$3.37.
• The company’s latest quarter also exceeded expectations, with EPS of $0.70 and revenue of $478.11 million compared with consensus estimates of $0.58 and $469.75 million, respectively.
• Shares rose to $83.88 following the update, while analysts maintained an overall “Moderate Buy” rating with an average price target of $87.41; insider sales were disclosed as transactions intended to cover tax withholding on vested equity awards.

Elastic (NYSE:ESTC - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.800-0.820 for the period, compared to the consensus 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 Price Performance

Shares of ESTC stock traded up $4.63 during trading hours on Thursday, reaching $83.88. The stock had a trading volume of 4,875,339 shares, compared to its average volume of 2,080,636. The stock's fifty day simple moving average is $66.94 and its 200 day simple moving average is $58.59. The firm has a market capitalization of $8.72 billion, a PE ratio of 23.96, a PEG ratio of 20.06 and a beta of 0.98. Elastic has a 12 month low of $42.05 and a 12 month high of $96.07. The company has a current ratio of 1.68, a quick ratio of 1.68 and a debt-to-equity ratio of 0.45.

Elastic (NYSE:ESTC - Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.12. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. The business had revenue of $478.11 million for the quarter, compared to analysts' expectations of $469.75 million. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. On average, equities research analysts predict that Elastic will post 0.24 EPS for the current year.

Analysts Set New Price Targets

ESTC has been the subject of several recent analyst reports. Wall Street Zen lowered Elastic from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Cantor Fitzgerald lifted their price target on Elastic from $59.00 to $91.00 and gave the stock a "neutral" rating in a research note on Monday. Scotiabank cut their target price on Elastic from $61.00 to $58.00 and set a "sector perform" rating on the stock in a research note on Friday, May 29th. Truist Financial lifted their price target on shares of Elastic from $80.00 to $100.00 and gave the company a "buy" rating in a report on Thursday, August 20th. Finally, UBS Group reiterated a "buy" rating and set a $85.00 target price on shares of Elastic in a report on Friday, May 29th. Seventeen equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $87.41.

Insider Buying and Selling at Elastic

In related news, insider Ken Exner sold 18,449 shares of the business's stock in a transaction that occurred on 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 in the company, valued at approximately $21,821,842.57. The trade was a 4.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Mark Eugene Dodds sold 18,439 shares of the stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $1,117,587.79. Following the completion of the transaction, the executive owned 298,211 shares in the company, valued at $18,074,568.71. The trade was a 5.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 110,099 shares of company stock worth $6,673,100. 12.70% of the stock is owned by corporate insiders.

Key Headlines Impacting Elastic

Here are the key news stories impacting Elastic this week:

• Positive Sentiment: Quarterly earnings beat estimates: Elastic reported adjusted earnings of $0.70 per share, surpassing the $0.58 consensus estimate, while revenue of $478.11 million exceeded expectations of $469.75 million. The earnings and revenue beats support the bullish reaction, although the company’s return on equity remained negative at 1.82%. Elastic Press Release
• Positive Sentiment: Momentum-focused investor interest: Zacks identified Elastic as a top-ranked momentum stock, potentially reinforcing demand for the shares following their strong recent performance. Zacks Momentum Stock Article
• Positive Sentiment: Analyst support: Wells Fargo reportedly expects Elastic’s stock to rise, while Cantor Fitzgerald issued a favorable outlook, adding to the positive sentiment surrounding the company. Wells Fargo Elastic Analyst Outlook Cantor Fitzgerald Elastic Forecast
• Neutral Sentiment: Mixed analyst targets: Rosenblatt reaffirmed a “buy” rating with an $83 price target, while DA Davidson raised its target to $80 but maintained a “neutral” rating. These targets suggest analysts see limited near-term upside after the recent rally. Rosenblatt Elastic Rating
• Neutral Sentiment: Another analyst roundup described sentiment toward Elastic and other technology stocks as neutral. Analyst Neutrality Report

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ESTC. Geneos Wealth Management Inc. bought a new stake in Elastic during the 2nd quarter worth approximately $31,000. Aster Capital Management DIFC Ltd increased its stake in shares of Elastic by 206.1% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 551 shares of the company's stock worth $42,000 after purchasing an additional 371 shares in the last quarter. Quarry LP raised its position in shares of Elastic by 16,200.0% during 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 period. Kestra Advisory Services LLC bought a new stake in shares of Elastic during the 4th quarter valued at $49,000. Finally, Larson Financial Group LLC lifted its stake in shares of Elastic by 1,347.1% during the 3rd quarter. Larson Financial Group LLC now owns 738 shares of the company's stock valued at $62,000 after buying an additional 687 shares in the last quarter. 97.03% of the stock is owned by hedge funds and other institutional investors.

About Elastic

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.

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