Elastic (NYSE:ESTC) Issues FY 2027 Earnings Guidance

Elastic (NYSE:ESTC) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 3.290-3.370 for the period, compared to the consensus estimate of 2.640. The company issued revenue guidance of $2.0 billion-$2.0 billion, compared to the consensus revenue estimate of $2.0 billion. Elastic also updated its Q2 2027 guidance to 0.800-0.820 EPS.

Elastic Price Performance

ESTC stock traded up $4.63 during mid-day trading on Thursday, hitting $83.88. The stock had a trading volume of 4,615,612 shares, compared to its average volume of 2,080,636. The firm has a fifty day simple moving average of $66.94 and a 200 day simple moving average of $58.59. The firm has a market capitalization of $8.72 billion, a P/E ratio of 23.96, a P/E/G ratio of 20.06 and a beta of 0.98. 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 has a 52 week low of $42.05 and a 52 week high of $96.07.

Elastic (NYSE:ESTC) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.70 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.12. The company had revenue of $478.11 million during the quarter, compared to the consensus estimate of $469.75 million. Elastic had a net margin of 21.14% and a negative return on equity of 1.82%. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. As a group, research analysts forecast that Elastic will post 0.24 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Wells Fargo & Company raised their target price on Elastic from $60.00 to $80.00 and gave the company an “equal weight” rating in a report on Tuesday. Wall Street Zen downgraded Elastic from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. TD Cowen raised their price objective on Elastic from $55.00 to $70.00 and gave the company a “hold” rating in a research note on Tuesday. Morgan Stanley cut Elastic from an “overweight” rating to an “equal weight” rating and decreased their target price for the company from $73.00 to $66.00 in a research report on Tuesday, July 21st. Finally, Royal Bank Of Canada increased their target price on shares of Elastic from $70.00 to $87.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Seventeen research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, Elastic presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.41.

Insider Activity

In related news, CFO Navam Welihinda sold 12,961 shares of the firm’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total transaction of $785,566.21. Following the completion of the transaction, the chief financial officer directly owned 209,254 shares of the company’s stock, valued at $12,682,884.94. This trade represents a 5.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 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 Elastic stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $60.61, for a total value of $1,117,587.79. Following the transaction, the executive directly 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 SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 110,099 shares of company stock valued at $6,673,100. 12.70% of the stock is currently owned by company 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 Trading of Elastic

Several institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its position in shares of Elastic by 153.4% in the 4th quarter. AQR Capital Management LLC now owns 7,545,081 shares of the company’s stock worth $569,201,000 after acquiring an additional 4,567,720 shares in the last quarter. FIL Ltd grew its stake in Elastic by 36.9% during the fourth quarter. FIL Ltd now owns 3,628,748 shares of the company’s stock worth $273,753,000 after purchasing an additional 977,578 shares during the period. Alyeska Investment Group L.P. increased its holdings in Elastic by 490.4% in the third quarter. Alyeska Investment Group L.P. now owns 1,113,503 shares of the company’s stock worth $94,080,000 after purchasing an additional 924,911 shares in the last quarter. Goldentree Asset Management LP acquired a new position in Elastic in the fourth quarter valued at approximately $49,323,000. Finally, BNP Paribas Financial Markets boosted its holdings in shares of Elastic by 305.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 832,353 shares of the company’s stock worth $70,192,000 after buying an additional 627,284 shares in the last quarter. 97.03% of the stock is currently owned by institutional investors.

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.