FMP

FMP

Elastic Shares Tumble 10% on Tepid Fiscal 2026 Outlook Despite Strong Q4

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

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.

Other Blogs

Nov 22, 2024 5:08 AM - Parth Sanghvi

Fundamental Analysis: Principles, Types, and How to Use It

Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...

blog post title

Dec 17, 2024 8:58 AM - Sanzhi Kobzhan

Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API

Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...

blog post title

Dec 22, 2024 7:59 AM - Sanzhi Kobzhan

Two great Software Platform Stocks Similar to Palantir (PLTR)

When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...

blog post title