Elastic N.V. (NYSE:ESTC) delivered a strong finish to its fiscal year with fourth-quarter results that topped expectations, but a cautious revenue outlook for the upcoming year triggered a 10% sell-off intra-day today.

The data analytics and search software company posted adjusted earnings of $0.47 per share on revenue of $388 million for the quarter, outpacing Wall Street estimates on both fronts. Revenue grew 16% year-over-year, driven largely by continued strength in its Elastic Cloud business, which surged 23% to $181.5 million.

However, the company’s guidance for fiscal 2026 left investors underwhelmed. Elastic projected annual revenue between $1.655 billion and $1.670 billion—below analyst expectations and implying a growth rate of about 12%, a deceleration compared to prior years.

Despite robust growth in large enterprise customers—with over 1,510 clients now generating more than $100,000 in annual contract value—investors appeared concerned about the company's ability to sustain its momentum in an increasingly competitive landscape, leading to sharp drop in the stock after the report.