Shares of Elastic (ESTC - Free Report) have gained 7% over the past four weeks to close the last trading session at $57.33, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $72.4 indicates a potential upside of 26.3%.
The mean estimate comprises 25 short-term price targets with a standard deviation of $13.37. While the lowest estimate of $55.00 indicates a 4.1% decline from the current price level, the most optimistic analyst expects the stock to surge 84.9% to reach $106.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for ESTC, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why ESTC Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 13.5%.
Moreover, ESTC currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ESTC could gain, the direction of price movement it implies does appear to be a good guide.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. ("Elastic" or the "Company") (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission ("SEC") that, in connection with "a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth", Elastic "expects to reduce its workforce by approximately 7%." The Company said that it "expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits." In the same press release, Elastic disclosed that "Ken Exner, the Company's Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer", effective July 17, 2026.
On this news, Elastic's stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
On July 21, 2026, Elastic NV ESTC shares fell 4.1% today, bringing the current price to $60.18. Over the last 52 weeks, the stock has traded between a high of $96.07 and a low of $42.05.
GF Value™ verdict: Current price of $60.18 is 42.2% below the GF Value™ of $104.13.GF Score™ of 74/100 indicates an above-average stock based on GuruFocus' historical data.Insider activity shows that insiders sold $6.7M in shares over the last 3 months, with no buying activity. Is ESTC Overvalued or Undervalued? The current price of Elastic NV ESTC at $60.18 represents a significant discount compared to the GF Value™ of $104.13, implying that the stock is undervalued by 42.2%. This margin of safety is appealing for those who adhere to value investing principles, suggesting a potential upside if the stock price aligns more closely with its intrinsic value. The GF Valuation label indicates that ESTC is significantly undervalued, reinforcing the notion that there could be a robust opportunity for long-term gains if the company can enhance its performance and investor sentiment improves.
However, potential investors should consider that the stock has been under pressure, with a year-to-date decline of 20.2% and a one-year drop of 30.7%. This downward momentum may stem from various factors, including overall market conditions and company-specific challenges. Therefore, while the undervaluation presents an opportunity, investors must remain cautious regarding the underlying risks that could hinder a rebound in share price.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ESTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 17.2x 189.8x Forward P/E 18.6x N/A The current P/E ratio of 17.2x is notably lower than its 5-year median P/E of 189.8x, indicating that the stock is trading well below its historical valuation. This P/E analysis aligns with the GF Value™ verdict, which suggests that ESTC is undervalued. The substantial difference between the current P/E and the historical median may reflect market skepticism regarding future growth or profitability, but it also emphasizes the potential for price correction if investor confidence returns.
What Does ESTC's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 6/10 Profitability 4/10 Growth 9/10 Valuation 4/10 Momentum 4/10 The GF Score™ of 74/100 indicates that Elastic NV is positioned above average compared to its peers. The strongest aspect of the score is its Growth rank of 9/10, suggesting a robust potential for future expansion and revenue growth. However, the weakest areas are Profitability and Valuation, both rated 4/10, which may indicate challenges in generating profits and achieving favorable valuation metrics in the current market environment. This mixed assessment highlights both the growth potential and the hurdles that could impact the company's financial health.
What Are Insiders Doing with ESTC Stock? Recent insider activity reveals that insiders have sold $6.7 million worth of shares in the last three months without any buying activity. This pattern of selling may raise concerns among potential investors, as it could signal a lack of confidence from those who are closely associated with the company. Insiders typically have better insights into the company's prospects, and such selling could indicate that they are not optimistic about short-term performance or future growth.
Without any buying activity from insiders, it could be interpreted as a cautious stance on the part of those within the company, further emphasizing the need for external investors to conduct thorough due diligence before making investment decisions.
What This Means for Investors Based on the GF Value™ assessment, Elastic NV ESTC appears to be undervalued at its current price of $60.18. The significant discount to the GF Value™ of $104.13 suggests a potential opportunity for investors. However, it is essential to consider the broader market trends, insider selling, and overall company performance before arriving at any investment conclusions.
For the complete analysis, visit the Elastic NV ESTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ESTC's GF Score™?
ESTC has a GF Score™ of 74/100, indicating it is above average compared to peers based on various financial metrics.
Is ESTC overvalued or undervalued?
According to the GF Value™ assessment, ESTC is undervalued, with a current price of $60.18 being 42.2% below its estimated fair value of $104.13.
What is ESTC's P/E ratio?
ESTC's P/E ratio is 17.2x, which is significantly below its 5-year median P/E of 189.8x, suggesting it is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. (“Elastic” or the “Company”) (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that, in connection with “a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth”, Elastic “expects to reduce its workforce by approximately 7%.” The Company said that it “expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits.” In the same press release, Elastic disclosed that “Ken Exner, the Company’s Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer”, effective July 17, 2026.
On this news, Elastic’s stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced today that it has achieved the AI Security distinction in the Amazon Web Services (AWS) Security Competency. This designation recognizes that Elastic has demonstrated and successfully met the AWS technical and quality requirements for providing customers with a deep level of expertise in AI Security and Threat Detection and Response, to help them achieve their cloud security goals. As enterprises adopt genera.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced that Gartner®, Inc. has named it a Leader in the Magic Quadrant™ for Observability Platforms for the third consecutive year. The evaluation was based on specific criteria that analyzed the company's overall Completeness of Vision and Ability to Execute. This recognition comes alongside the Gartner companion Critical Capabilities for Observability Platforms report where Elastic ranked first for three of.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. ("Elastic" or the "Company") (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission ("SEC") that, in connection with "a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth", Elastic "expects to reduce its workforce by approximately 7%." The Company said that it "expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits." In the same press release, Elastic disclosed that "Ken Exner, the Company's Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer", effective July 17, 2026.
On this news, Elastic's stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Independent testing across 16 security vendors confirms Elastic Security leads on prevention, accuracy, and performance
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced that Elastic Security earned the only 100% malware protection score among 16 security vendors in the AV-Comparatives 2026 Business Security Test, covering the March–June 2026 test period. Elastic Security also tied for the highest score in the Real-World Protection Test with a 99.8% protection rate and earned the AV-Comparatives Approved Business Product Award.
The AV-Comparatives Business Security Test is one of the industry's most rigorous independent evaluations, running on fully patched Windows 11 across two distinct test disciplines. The Malware Protection Test simulates on-disk and LAN-delivered threats across 1,000 recent malware samples, while the Real-World Protection Test replicates active browsing-based threats such as malicious URLs, drive-by exploits, and socially engineered downloads across 400 test cases run continuously over four months. Together, they measure whether enterprise security products can catch threats at every stage without generating noise that buries security teams.
Elastic Security blocked all 1,000 malware samples in the Malware Protection Test (the only vendor in the field to do so) and stopped 399 of 400 threats in the Real-World Protection Test, tying with Kaspersky and Bitdefender for the highest score in that test. Both results were achieved with zero false alarms on common business software, the accuracy threshold AV-Comparatives requires for certification.
"Security teams are measured against the impossible standard to stop everything, slow nothing, alert only on what matters," said Mike Nichols, general manager, Security at Elastic. "These results from AV-Comparatives confirm that Elastic meets that standard in independent, unfiltered testing. It achieved the only perfect malware protection score in the field, top-tier real-world coverage, and zero false alarms on the software businesses actually run."
At the core of these results is Elastic Defend, the native endpoint protection layer inside Elastic Security. Elastic Security unifies endpoint protection, SIEM, investigation, response, and automation on a single platform and can ingest telemetry from third-party tools already in use across an organization. It deploys in connected, restricted-network, and fully air-gapped environments, with security content distributed over internal infrastructure where direct internet access is unavailable. For organizations that run unusual internal tooling, Elastic's centralized policy management, trusted application lists, and endpoint exceptions provide the controls to tune detection to their environment.
Additional Materials
Blog: Elastic leads the latest AV-Comparatives Malware Protection Test with a perfect scoreReport: AV-Comparatives 2026 Business Security TestElastic Security product page: elastic.co/securityAbout Elastic
Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered trademarks of elasticsearch B.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
NEW YORK, July 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. (“Elastic” or the “Company”) (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that, in connection with “a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth”, Elastic “expects to reduce its workforce by approximately 7%.” The Company said that it “expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits.” In the same press release, Elastic disclosed that “Ken Exner, the Company’s Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer”, effective July 17, 2026.
On this news, Elastic’s stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
On July 13, 2026, Elastic NV (ESTC) shares rose by 3.6%, bringing the current price to $62.43. Over the past 52 weeks, shares have traded between a high of $96.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Elastic (ESTC - Free Report) Elastic N.V. is a Netherlands-based software company that offers the Elastic Search AI Platform, a set of products that ingest and store data from any source and format and enable search, analysis and visualization for a wide range of use cases. The platform underpins three primary solutions – Elasticsearch, Elastic Observability and Elastic Security. These offerings run across hybrid, public, private and multi-cloud environments, allowing customers to deploy where they operate.
ESTC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ESTC has a Growth Style Score of B, forecasting year-over-year earnings growth of 25.3% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.32 to $3.22 per share. ESTC also boasts an average earnings surprise of +19.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ESTC should be on investors' short list.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. ("Elastic" or the "Company") (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission ("SEC") that, in connection with "a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth", Elastic "expects to reduce its workforce by approximately 7%." The Company said that it "expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits." In the same press release, Elastic disclosed that "Ken Exner, the Company's Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer", effective July 17, 2026.
On this news, Elastic's stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, July 07, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Elastic N.V. (“Elastic” or the “Company”) (NYSE: ESTC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Elastic and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 24, 2026, Elastic disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that, in connection with “a plan . . . intended to simplify team structures, reduce organizational complexity, improve decision-making speed, reallocate resources towards key growth areas, and invest in the skills and capabilities needed to support the Company's ongoing growth”, Elastic “expects to reduce its workforce by approximately 7%.” The Company said that it “expects to incur total non-recurring cash charges of approximately $22 million to $25 million under the plan, which will primarily consist of employee-related costs, including severance and other termination benefits.” In the same press release, Elastic disclosed that “Ken Exner, the Company’s Chief Product Officer, notified the Company of his decision to resign from his position as Chief Product Officer”, effective July 17, 2026.
On this news, Elastic’s stock price fell $5.11 per share, or 8.7%, to close at $53.60 per share on June 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced new capabilities that bring the same scale, performance, and operational simplicity that have made Elastic a trusted platform for logs to metrics. With native Prometheus and PromQL support, out-of-the-box Kubernetes investigation workflows, and automated migration from Datadog and Grafana, Elastic now delivers a unified platform for metrics and logs. Built on Elasticsearch's columnar metrics engine, the.
Elastic Delivers Best-in-Class Metrics With Native Prometheus Support and Agentic Investigation Experiences Elastic (NYSE: ESTC), the Search AI Company, today announced new capabilities that bring the same scale, performance, and operational simplicity that have made Elastic a trusted platform for logs to metrics. With native Prometheus and PromQL support, out-of-the-box Kubernetes investigation workflows, and automated migration from Datadog and Grafana, Elastic now delivers a unified platform for metrics and logs. Built on Elasticsearch's columnar metrics engine, the platform can query metrics up to 30x faster than Prometheus and store data up to 2.5x more efficiently, without cardinality limits or custom metric penalties.
The metrics landscape has changed dramatically. Kubernetes and microservices have already pushed observability systems from thousands to millions of time series. Now AI workloads are accelerating that growth, making metrics not only a scale challenge but also a strategic cost and reliability problem. Most platforms make that growth expensive: premium vendors increase costs as cardinality grows, while lower-cost alternatives fragment metrics and logs across separate backends and query languages. The result is that teams often reduce data collection to control costs, leaving engineers with less context when incidents occur.
Elastic Observability addresses both problems in a single platform that stores OpenTelemetry, Prometheus-native, and application-defined metrics at full resolution alongside logs and traces, with no separate backends and no retention trade-offs. The release spans the metrics engine and the capabilities built on it:
Native PromQL and Prometheus Remote Write: PromQL queries run natively in Kibana and Prometheus metrics arrive via Remote Write, so existing dashboards, alert rules, and scrape configs work without modification.
Out-of-the-box Kubernetes workflows and content: SREs now go straight from an alert to the root cause through out-of-the-box agentic workflows, alert templates, ML anomaly detection jobs, and pre-built dashboards that activate at ingest for Kubernetes. SRE teams do not need to configure infrastructure from scratch before they get value.
Agentic investigations: When an alert fires, Elastic correlates metrics, logs, and traces that already share a single backend, using workflows with ML anomaly detection to surface what changed and how severe the deviation is before anyone is paged. The Observability MCP App and agent skills bring the same investigation capabilities to Claude, Cursor, VS Code, and any MCP-compatible tool.
Automated migration from Datadog and Grafana: The Observability Migration Platform converts dashboards, alert rules, and PromQL queries into Kibana equivalents automatically, so teams move what they've already built rather than rebuilding it.
"Elastic was already the platform many SREs trusted for logs at scale. Now we're bringing that same impressive scale, performance, and operational simplicity to metrics, delivering up to 30x faster metric queries than Prometheus, native Prometheus compatibility, and a more predictable cost model for high-cardinality metrics," said Baha Azarmi, general manager, Observability at Elastic. "With a single backend for every signal, a single query language, and investigations that start before anyone is paged, SREs get complete context at the moment they need it most — without the bills that have forced teams to compromise on the data they keep."
“As we’ve moved more applications into Kubernetes and expanded our cloud footprint, data is growing rapidly and our need for granular, high-cardinality metrics is increasing," said Jeff Beagley, manager of DevOps, SRE, and Cloud Engineering, Bass Pro Shops. “Elastic’s new metrics capabilities let us handle that volume and surface the insights we need. Coupled with Elastic’s OpenTelemetry support, we get visibility into an increasingly complex architecture — all while keeping performance up and costs down.”
“At Eurowings, the improved metrics performance, native Prometheus support, logsdb and incident-handling workflows in Elasticsearch have helped our teams achieve faster incident response times and a more unified view across signals without jumping between systems,” said Iosif Tournas, Cyber Security & Elastic Platform Lead, Eurowings Aviation. “These new metrics capabilities complement the millions of log events per minute and APM traces we’re already handling in Elastic Observability. This unified view reduces operational friction, breaks the silos between teams and the time it takes to detect and respond to issues.”
Availability
The columnar metrics engine (TSDS), ES|QL time series support, PromQL in Kibana, and Prometheus Remote Write ingest are generally available. Out-of-the-box Kubernetes infrastructure content including dashboards, alert templates, SLO and ML anomaly detection jobs are also generally available. The Observability MCP App, Agent Skills, and the Observability Migration Platform are available in tech preview. All capabilities run across Elastic Cloud, serverless, and self-managed deployments.
While Datadog does not offer an on-premises option and Grafana limits its highest-value features to hosted deployments, Elastic gives organizations the flexibility to run observability workloads where their data and operational requirements demand.
Additional Resources
Read the blogs:
[url="]Elasticsearch: best-in-class for logs, now best-in-class for metrics [/url]
[url="]Elasticsearch’s Columnar Store, 160x Faster and 6.6x more storage efficient [/url]
Elastic Observability Metrics Pricing Updates
Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered trademarks of elasticsearch B.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260630816603/en/
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Elastic (ESTC - Free Report) Elastic N.V. is a Netherlands-based software company that offers the Elastic Search AI Platform, a set of products that ingest and store data from any source and format and enable search, analysis and visualization for a wide range of use cases. The platform underpins three primary solutions – Elasticsearch, Elastic Observability and Elastic Security. These offerings run across hybrid, public, private and multi-cloud environments, allowing customers to deploy where they operate.
ESTC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ESTC has a Growth Style Score of A, forecasting year-over-year earnings growth of 25.3% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.32 to $3.22 per share. ESTC also boasts an average earnings surprise of +19.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ESTC should be on investors' short list.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced that it has been named a Leader in the IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment (Doc# US54126826, June 2026). Download the complimentary excerpt here.
The IDC MarketScape’s assessment highlights several key strengths of Elastic Security, including:
Elastic Common Schema and the underlying Elasticsearch engine allow customers to query security and operational data using a single language. Customers report scaling log ingestion volumes by five times without re-architecting, and the same platform supports observability, extending value beyond the security team. Elastic Security operates with feature parity across self-managed, hosted, serverless, and disconnected deployments and supports federated cross-cluster search for organizations with data sovereignty requirements. The fit aligns with public sector, utility, and multinational buyers that SaaS-only products cannot serve directly. Detection rules are developed in public repositories and updated on a roughly two-week cadence, and the AI assistant exposes a reasoning trace covering prompts, tool calls, and responses. Customers can connect multiple LLMs and select among them per workflow. Elastic Defend ships in the enterprise subscription with no per-endpoint fee, and Elastic Workflows provides native automation in the same platform, removing the need to license a separate SOAR for many use cases. "Elastic's position as a Leader reflects a SIEM platform built for the realities of modern security operations – soaring data volumes, distributed environments, and high velocity workflows with full visibility,” said Michelle Abraham, research director, Security and Trust, IDC. “The combination of unified log ingestion, transparent AI reasoning, and native EDR and automation in a single subscription removes procurement complexity that slows most SOC teams down."
"Being recognized as a Leader in the 2026 IDC MarketScape for Worldwide SIEM 2026 is validation that we're solving the right problems," said Mike Nichols, general manager, Security, Elastic. "Our agentic SOC platform puts AI to work across the full threat lifecycle, from first signal to active response, so analysts can focus on what AI can't do, which is to exercise judgment. Most competitors charge you twice to get there. Separate SOARs. Per-endpoint fees. Penalties for looking at your own historical data. We built Elastic Security to do one thing: secure. Without the tax on your time, your wallet, your trust, or your attention."
Elastic Security is the agentic security operations platform consisting of one platform for SIEM, XDR, and native automation. According to the report, “Elastic operates through a subscription model with a free tier, an entry-level subscription, and an enterprise subscription that includes the full security feature set. Public sector presence is significant; Elastic operates a FedRAMP-authorized hosted SIEM-as-a-service platform for the U.S. Cybersecurity and Infrastructure Security Agency. The vendor has expanded its global partner ecosystem over the past year through a restructured global partnerships team that targets growth through cloud service provider relationships and regional resellers.”
The report notes, “Deployment options span self-managed on bare metal or private infrastructure, Elastic Cloud on Kubernetes, Elastic Cloud Hosted, and Elastic Cloud Serverless, with parity across cloud, on-premises, hybrid, and air-gapped environments, including AI features when customers host their own large language model (LLM). Cross-cluster search supports a federated data model in which customer data remains in regional clusters while a central security operations center queries across them, an architecture Elastic uses to address data sovereignty requirements.”
For more information, read the IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment report and blog.
About IDC MarketScape
IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of technology and service suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
About Elastic
Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered trademarks of elasticsearch B.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
Elastic Named a Strong Performer in Extended Detection And Response Platforms, Q2 2026 Elastic (NYSE: ESTC), the Search AI Company, today announced that it has been named a Strong Performer in The Forrester Wave™: Extended Detection And Response Platforms, Q2 2026. The report recognized Elastic Security’s SIEM-replacement capabilities, open data architecture, AI innovation, and endpoint protection. Access the complimentary report here.
Elastic Security is an agentic security operations platform that unifies SIEM, XDR, and native automation. Elastic’s native endpoint protection offers tangible efficacy against real-world attack scenarios. Elastic Security is the only vendor to achieve 14 consecutive months of 100% rates in AV-Comparatives’ Malware and Real-World Protection Tests. The Forrester Wave assessment notes that Elastic’s strategy envisions an open, agentic SOC that will automate operations.
Elastic’s vendor profile in the report states the following:
Elastic’s SIEM-replacement features are strong, as it ingests a wide range of telemetry at scale, including from its endpoint agent, enabling security teams to correlate across cloud, endpoint, identity, application, and network data without siloed tools. Its open data formats and core engines, strong training content, and flexible data management make it heavily customizable. Flexibility is a differentiator: Elastic is a good fit for organizations looking for– and that have the resources to support– a tool built for maximum flexibility across data ingestion, analytics, and AI. Security teams can ingest telemetry from virtually any source, tailor detections to their unique environment and risk profile, and build workflows aligned with existing processes rather than adapting to rigid platform constraints. Detection engineers can move faster, reduce vendor lock-in, and create security operations experiences that fit their organization. Open, agentic SOC automates operations: Elastic demonstrates a strong commitment to innovation, with a focus on AI features, such as Attack Discovery and Automatic Migration. Attack Discovery correlates related alerts into higher-confidence attack narratives so analysts focus on real incidents rather than undifferentiated alert queues, while Automatic Migration moves dashboards and detection rules from legacy SIEMs into Elastic without rewriting rules. "We believe every security team deserves access to proven endpoint capability, regardless of budget or team size," said Mike Nichols, general manager, Security, Elastic. "This Forrester recognition validates what our customers already know: the endpoint detection included in our agentic security platform works. No separate license. No add-on. Enterprise-grade protection, accessible to everyone."
Elastic Security runs on the same Elasticsearch platform as observability and search workloads, so security teams can correlate across operational and security telemetry without moving data across tools. The Elastic Security MCP App enables alert triaging, threat hunting, and case management directly within the tools analysts already use, including Claude Desktop, Claude.ai, VS Code Copilot, and Cursor.
For more information, read The Forrester Wave™: Extended Detection And Response Platforms, Q2 2026 report and blog.
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity here.
About Elastic
Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered trademarks of elasticsearch B.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260616762518/en/
Report recognizes Elastic’s strong SIEM-replacement features, open data architecture, AI innovation, and endpoint protection
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced that it has been named a Strong Performer in The Forrester Wave™: Extended Detection And Response Platforms, Q2 2026. The report recognized Elastic Security’s SIEM-replacement capabilities, open data architecture, AI innovation, and endpoint protection. Access the complimentary report here.
Elastic Security is an agentic security operations platform that unifies SIEM, XDR, and native automation. Elastic’s native endpoint protection offers tangible efficacy against real-world attack scenarios. Elastic Security is the only vendor to achieve 14 consecutive months of 100% rates in AV-Comparatives’ Malware and Real-World Protection Tests. The Forrester Wave assessment notes that Elastic’s strategy envisions an open, agentic SOC that will automate operations.
Elastic’s vendor profile in the report states the following:
Elastic’s SIEM-replacement features are strong, as it ingests a wide range of telemetry at scale, including from its endpoint agent, enabling security teams to correlate across cloud, endpoint, identity, application, and network data without siloed tools. Its open data formats and core engines, strong training content, and flexible data management make it heavily customizable. Flexibility is a differentiator: Elastic is a good fit for organizations looking for– and that have the resources to support– a tool built for maximum flexibility across data ingestion, analytics, and AI. Security teams can ingest telemetry from virtually any source, tailor detections to their unique environment and risk profile, and build workflows aligned with existing processes rather than adapting to rigid platform constraints. Detection engineers can move faster, reduce vendor lock-in, and create security operations experiences that fit their organization. Open, agentic SOC automates operations: Elastic demonstrates a strong commitment to innovation, with a focus on AI features, such as Attack Discovery and Automatic Migration. Attack Discovery correlates related alerts into higher-confidence attack narratives so analysts focus on real incidents rather than undifferentiated alert queues, while Automatic Migration moves dashboards and detection rules from legacy SIEMs into Elastic without rewriting rules. "We believe every security team deserves access to proven endpoint capability, regardless of budget or team size," said Mike Nichols, general manager, Security, Elastic. "This Forrester recognition validates what our customers already know: the endpoint detection included in our agentic security platform works. No separate license. No add-on. Enterprise-grade protection, accessible to everyone."
Elastic Security runs on the same Elasticsearch platform as observability and search workloads, so security teams can correlate across operational and security telemetry without moving data across tools. The Elastic Security MCP App enables alert triaging, threat hunting, and case management directly within the tools analysts already use, including Claude Desktop, Claude.ai, VS Code Copilot, and Cursor.
For more information, read The Forrester Wave™: Extended Detection And Response Platforms, Q2 2026 report and blog.
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity here.
About Elastic
Elastic (NYSE: ESTC), the Search AI Company, integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elastic's Search AI Platform — the foundation for its search, observability, and security solutions — is used by thousands of companies, including more than 50% of the Fortune 500. Learn more at elastic.co.
Elastic and associated marks are trademarks or registered trademarks of elasticsearch B.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Elastic (ESTC - Free Report) Elastic N.V. is a Netherlands-based software company that offers the Elastic Search AI Platform, a set of products that ingest and store data from any source and format and enable search, analysis and visualization for a wide range of use cases. The platform underpins three primary solutions – Elasticsearch, Elastic Observability and Elastic Security. These offerings run across hybrid, public, private and multi-cloud environments, allowing customers to deploy where they operate.
ESTC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. ESTC has a Momentum Style Score of B, and shares are up 19.3% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.26 to $3.16 per share. ESTC boasts an average earnings surprise of +19.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ESTC should be on investors' short list.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced native Prometheus support, including direct ingestion via Remote Write and full PromQL support in Kibana. These additions enable Site Reliability Engineers (SREs) to analyze Prometheus metrics alongside logs and traces in a single platform, without rewriting queries or rebuilding pipelines. As organizations scale Kubernetes, Prometheus telemetry cardinality and volumes surge, forcing SREs to juggle mult.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that Jina Embeddings v3 is now available as a self-deployable partner model in Gemini Enterprise Agent Platform Model Garden. As the first Jina model available on the platform, it enables organizations to deploy high-performance retrieval models directly within their own cloud environments. With Jina Embeddings v3 deployed directly inside their Google Cloud projects and Virtual Private Clouds (VPCs), enterpri.
On April 23, 2026, Elastic NV ESTC shares fell 7.1% to a current price of $45.75. This decline comes amid a challenging year for the stock, which has decreased 39.4% year-to-date and 41.0% over the past year. The stock has experienced volatility, with a 52-week trading range between $42.05 and $96.07.
GF Value™ verdict: The current price of $45.75 is 56.0% below the GF Value™ of $103.86, indicating significant undervaluation.GF Score™: At 68/100, ESTC is rated as Above Average, suggesting potential for long-term returns.Notable signal: Insider activity reflects a bearish sentiment as insiders sold $2.0M worth of shares over the last three months without any buying. Is ESTC Overvalued or Undervalued? Elastic NV is currently trading at a price of $45.75, significantly below its GF Value™ of $103.86. This 56.0% margin of safety indicates that the stock is undervalued based on GuruFocus' proprietary valuation metrics. The GF Valuation label categorizes ESTC as "Significantly Undervalued," suggesting that there is a considerable opportunity for investors looking to enter the stock at this price point. However, caution is warranted as the recent insider selling may reflect a lack of confidence in the company's near-term prospects.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This methodology underscores the potential for price appreciation if the market corrects its valuation of Elastic NV in alignment with its intrinsic value.
How Does ESTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.1x 198.5x The current P/E ratio of 16.1x is significantly lower than the 5-year median P/E of 198.5x. This suggests that ESTC is trading well below its historical valuation levels. The P/E analysis aligns with the GF Value™ verdict of being undervalued, indicating a potential buying opportunity for investors who believe in the company's long-term growth prospects.
What Does ESTC's GF Score™ Tell Us? Metric Rating GF Score™ 68 Financial Strength 5/10 Profitability 4/10 Growth 9/10 Valuation 2/10 Momentum 2/10 The GF Score™ of 68/100 indicates that Elastic NV has a strong growth potential, as evidenced by its growth rank of 9/10. However, its financial strength and profitability scores, at 5/10 and 4/10 respectively, suggest that there are areas for improvement. The valuation rank of 2/10 and momentum rank of 2/10 indicate that the stock is currently facing challenges in these areas, which may be contributing to its recent price decline.
What Are Insiders Doing with ESTC Stock? Recent insider activity shows that insiders have sold $2.0M worth of shares in the last three months, with no reported buying during this period. This pattern of selling may indicate a lack of confidence in the company's near-term performance or overall market sentiment. Such actions could be viewed as a cautionary signal for potential investors, as insider confidence often correlates with company prospects.
What This Means for Investors Based on the GF Value™ assessment, Elastic NV ESTC is currently undervalued. The significant gap between the current price and the GF Value™ suggests there may be an opportunity for price appreciation if the market recognizes the intrinsic value of the company. However, investors should consider the recent insider activity and the overall market environment before making any decisions.
For the complete analysis, visit the Elastic NV ESTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ESTC's GF Score™?
ESTC has a GF Score™ of 68/100, indicating that it is rated as Above Average and may generate higher long-term returns based on backtested performance.
Is ESTC overvalued or undervalued?
Elastic NV is currently undervalued, with a GF Value™ of $103.86 compared to its current price of $45.75, suggesting a significant margin of safety.
What is ESTC's P/E ratio?
The current P/E ratio for Elastic NV is 16.1x, which is substantially lower than its historical 5-year median P/E of 198.5x, indicating the stock is trading below its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today announced jina-embeddings-v5-omni, a new family of multimodal embedding models with the ability to represent text, images, video, and audio as vectors. Developers can now perform search, classification, clustering, and deduplication across different media types, giving users powerful new ways to understand and organize multimodal data. Available in two sizes, small and nano, the new omni models share the exact sa.
On May 13, 2026, Elastic NV ESTC shares fell 3.0% today, bringing the current price to $48.57. Over the past 52 weeks, the stock has fluctuated between a high of $96.07 and a low of $42.05, reflecting significant volatility in its price performance.
GF Value™ verdict: The current price of $48.57 is 53.6% below the estimated fair value of $104.62.GF Score™: The stock has a GF Score™ of 62/100, which indicates it is above average in terms of quality and performance potential.Notable signal: Insiders have sold $2.0M worth of shares in the last three months, with no buying activity reported. Is ESTC Overvalued or Undervalued? The current price of Elastic NV ESTC at $48.57 presents a significant discount compared to its GF Value™ of $104.62, indicating that the stock is undervalued by approximately 53.6%. This margin of safety suggests that there may be an opportunity for investors, as the GF Valuation label indicates that the stock is significantly undervalued. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
However, potential investors should consider the risks associated with such valuation discrepancies. Market sentiment, future growth prospects, and fundamental changes in the company’s operations or external environment can impact price movements. While the current valuation may suggest an attractive entry point, it is crucial to remain cautious about external factors that could weigh on performance.
How Does ESTC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 17.0x 198.5x Elastic NV's current P/E ratio of 17.0x is significantly lower than its 5-year median P/E of 198.5x, indicating that the stock is trading well below its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being undervalued, suggesting that the current pricing may present an attractive opportunity in the market.
What Does ESTC's GF Score™ Tell Us? Metric Rating GF Score™ 62 Financial Strength 5/10 Profitability 4/10 Growth 8/10 Valuation 2/10 Momentum 1/10 The GF Score™ of 62/100 indicates a stock that is above average in quality. Notably, Elastic NV has a strong Growth rank of 8/10, reflecting its potential for future expansion. However, the Valuation rank of 2/10 and Momentum rank of 1/10 suggest areas of concern, particularly in how the market perceives the stock's current pricing and performance trends.
What Are Insiders Doing with ESTC Stock? In recent months, insiders at Elastic NV have sold approximately $2.0 million in shares without any reported buying activity. This pattern of selling may indicate a lack of confidence in the stock's short-term prospects or could reflect personal financial decisions of the insiders. The absence of insider buying, especially during a time when the share price is significantly undervalued, may also raise questions about the company's near-term outlook.
What This Means for Investors Based on the analysis, Elastic NV ESTC is currently undervalued with a GF Value™ indicating a significant upside potential. However, investors should remain vigilant regarding insider selling and the company's financial health, as these factors could influence future performance.
For the complete analysis, visit the Elastic NV ESTC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ESTC's GF Score™?
Elastic NV has a GF Score™ of 62/100, indicating that it is above average in terms of quality and potential for long-term returns.
Is ESTC overvalued or undervalued?
Elastic NV is currently undervalued with a GF Value™ indicating it is 53.6% below its estimated fair value.
What is ESTC's P/E ratio?
The current P/E ratio for Elastic NV is 17.0x, which is significantly lower than its historical median of 198.5x, suggesting that the stock is trading at a discount relative to its past valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that it will release its financial results for its fourth quarter and fiscal 2026 ended April 30, 2026, after the U.S. market close on Thursday, May 28, 2026. The company will host a conference call at 2:00 p.m. PT / 5:00 p.m. ET that day to review its financial results and business outlook. A live webcast of the conference call will be accessible from the Elastic investor relations website at ir.elastic.co.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced that its management will present at the following conferences: BofA Securities Global Technology Conference 2026 on Thursday, June 4, 2026, at 9:20 a.m. PT / 12:20 p.m. ET Rosenblatt's 6th Annual Technology Summit on Wednesday, June 10, 2026, at 11:00 a.m. PT / 2:00 p.m. ET The presentations will be webcast live, and a replay will be available for a limited time on the Events and Presentations section of Elas.
Analysts on Wall Street project that Elastic (ESTC - Free Report) will announce quarterly earnings of $0.56 per share in its forthcoming report, representing an increase of 19.2% year over year. Revenues are projected to reach $446.3 million, increasing 14.9% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Elastic metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Revenue- Subscription- Elastic Cloud' should come in at $216.86 million. The estimate suggests a change of +19.5% year over year.
The consensus estimate for 'Revenue- Subscription' stands at $420.64 million. The estimate suggests a change of +16.3% year over year.
Analysts predict that the 'Revenue- Subscription- Other subscription' will reach $204.05 million. The estimate indicates a year-over-year change of +13.2%.
The consensus among analysts is that 'Revenue- Services' will reach $25.74 million. The estimate indicates a change of -3.6% from the prior-year quarter.
View all Key Company Metrics for Elastic here>>>
Over the past month, Elastic shares have recorded returns of +17.7% versus the Zacks S&P 500 composite's +5.5% change. Based on its Zacks Rank #3 (Hold), ESTC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, announced financial results for its fourth quarter and full fiscal year ended April 30, 2026. Fourth Quarter Fiscal 2026 Financial Highlights Total revenue was $451 million, an increase of 16% year-over-year, or 14% on a constant currency basis Total subscription revenue was $422 million, an increase of 17% year-over-year, or 15% on a constant currency basis Sales-led subscription revenue (calculated as subscription re.
Elastic (ESTC - Free Report) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.72%. A quarter ago, it was expected that this software developer would post earnings of $0.64 per share when it actually produced earnings of $0.73, delivering a surprise of +14.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Elastic, which belongs to the Zacks Internet - Software industry, posted revenues of $450.68 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $388.43 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Elastic shares have lost about 28.6% since the beginning of the year versus the S&P 500's gain of 9.9%.
What's Next for Elastic?While Elastic has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Elastic was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $469.58 million in revenues for the coming quarter and $2.89 on $1.97 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Paychex (PAYX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.
This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Paychex's revenues are expected to be $1.6 billion, up 12.4% from the year-ago quarter.
Elastic (ESTC - Free Report) reported $450.68 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 16%. EPS of $0.61 for the same period compares to $0.47 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $446.4 million, representing a surprise of +0.96%. The company delivered an EPS surprise of +8.72%, with the consensus EPS estimate being $0.56.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Elastic performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Services: $28.24 million compared to the $25.77 million average estimate based on eight analysts. The reported number represents a change of +5.8% year over year.Revenue- Subscription: $422.45 million versus $420.6 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.Revenue- Subscription- Elastic Cloud: $217.36 million versus $216.86 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +19.8% change.Revenue- Subscription- Other subscription: $205.09 million versus the seven-analyst average estimate of $204.05 million. The reported number represents a year-over-year change of +13.8%.Revenue- Subscription- Elastic Cloud- Annual Elastic Cloud: $169.6 million compared to the $167.57 million average estimate based on three analysts.Revenue- Subscription- Elastic Cloud- Monthly Elastic Cloud: $47.77 million versus the three-analyst average estimate of $48.87 million.View all Key Company Metrics for Elastic here>>>
Shares of Elastic have returned +13.7% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Why Elastic Could Be the Next AI Winner in 2026Elastic NYSE: ESTC reported stronger-than-expected fourth-quarter fiscal 2026 results, with executives pointing to accelerating customer commitments, rising artificial intelligence-related adoption and larger multi-year deals as key drivers of momentum heading into fiscal 2027.
Chief Executive Officer Ashutosh Kulkarni said the company “finished the year strong, beating our guidance across every key metric,” marking what he described as the seventh consecutive quarter of disciplined field execution. He said current remaining performance obligations, or CRPO, accelerated to 20% growth, while remaining performance obligations, or RPO, grew more than 28% in the quarter.
Get Elastic alerts:
Buyback Boom: 3 Companies Betting Big on Themselves“Organizations are increasingly choosing Elastic for their long-term AI transformations and making larger multi-year commitments to standardize on our platform for the future,” Kulkarni said.
Revenue Rises 16% as Subscription Growth Remains Durable For the fourth quarter, Elastic reported total revenue of $451 million, up approximately 16% as reported and 14% on a constant-currency basis. Sales-led subscription revenue was $375 million, representing growth of 19% as reported and 16% in constant currency.
MarketBeat Week in Review – 03/03 - 03/07For the full fiscal year, the company reported 17% revenue growth and a non-GAAP operating margin of 16.4%. Fourth-quarter non-GAAP operating margin was 14.8%.
Chief Financial Officer Navam Welihinda said the company’s sales-led subscription revenue grew 20% for fiscal 2026, supported by “strong customer commitments alongside stable consumption patterns.” He said Elastic’s sales strategy is focused on high-potential mid-market and strategic enterprise customers.
Elastic said it saw a record fourth quarter for deals with more than $1 million in annual contract value. During fiscal 2026, the company added more than 30 net new customers to its cohort of customers with more than $1 million in ACV, bringing that group to more than 240. Customers spending more than $5 million annually grew 30%, and the company ended the year with more than 1,720 customers spending over $100,000 in ACV.
AI Adoption Drives Larger Commitments Executives repeatedly emphasized AI as a central driver of demand across Elastic’s platform. Kulkarni said the company now has more than 600 customers with ACV of at least $100,000 using its AI capabilities, including more than 40 serverless customers that were previously not included in that count. He said AI use cases have penetrated more than one-third of Elastic’s $100,000-plus ACV customer cohort.
Kulkarni described four areas where Elastic believes it is positioned for AI-related demand: data gravity, context, specialized agents and platform consolidation. He said customers are using Elasticsearch as a data store for AI applications, as a context platform for retrieval and as part of AI-driven security and observability workflows.
The company highlighted several customer examples, including a seven-figure new logo win with a global provider of financial business information that is using Elasticsearch across a repository of more than 2 billion documents. Elastic also cited a seven-figure expansion with a workplace AI software firm and an eight-figure win with a Fortune 50 global financial services firm consolidating cyber data silos into an AI-driven SIEM.
In response to an analyst question, Kulkarni said Elastic is seeing momentum from customers using its platform as a data store, its vector database and Jina models for context, and AI-driven security and observability agents. He said these capabilities are helping Elastic win larger, longer-term commitments because they make the platform more entrenched in customer AI infrastructure.
Public Sector Cloud Mix Affects In-Quarter Revenue Elastic executives said a larger mix of cloud commitments in the quarter affected reported fourth-quarter revenue timing. Welihinda explained that cloud commitments typically ramp over the course of the year, while self-managed commitments include a portion of revenue recognized upfront when the license is delivered.
Kulkarni said the company’s partnership with the Cybersecurity and Infrastructure Security Agency around Elastic SIEM as a Service is expanding, with more civilian agencies moving away from competing security offerings onto the Elastic Cloud-powered service. He said the commitments mix in the quarter shifted more toward Elastic Cloud than in prior years, which affected in-quarter revenue but is expected to be positive as agencies ramp usage toward commitment levels.
Welihinda said the company anticipates U.S. public sector cloud momentum will continue in fiscal 2027. He added that Elastic’s public sector business remains strong and that the company is pleased with adoption of SIEM as a Service by civilian agencies.
RPO and CRPO Signal Backlog Strength Welihinda said CRPO reached $1.2 billion in the fourth quarter, growing 20% as reported and in constant currency, up from 15% constant-currency growth in the prior quarter. RPO reached $1.98 billion, growing 28% as reported and 27.4% in constant currency.
He said non-current RPO, representing obligations to be recognized beyond 12 months, increased 43% year over year, underscoring a shift toward multi-year commitments. Welihinda said Elastic secured those commitments without a material change in discounting practices.
“While there continues to be noise and questions in the market regarding AI’s impact on software, there is clarity among our customers with respect to Elastic being an essential long-term component in their AI infrastructure,” Welihinda said.
Fiscal 2027 Guidance Calls for Revenue Growth and Margin Expansion Elastic guided for first-quarter fiscal 2027 total revenue of $469 million to $470 million, representing 13.1% year-over-year growth at the midpoint, or 12.8% growth in constant currency. The company expects first-quarter sales-led subscription revenue of $392 million to $393 million, representing 15.9% growth at the midpoint, or 15.6% in constant currency.
For fiscal 2027, Elastic expects:
Total revenue of $1.985 billion to $2 billion, representing 14.6% growth at the midpoint. Sales-led subscription revenue of $1.673 billion to $1.688 billion, representing 16.9% growth at the midpoint. Non-GAAP operating margin of approximately 19%. Non-GAAP diluted earnings per share of $3.21 to $3.29. Adjusted free cash flow margin of 21.5%, excluding acquisitions or one-time charges. Welihinda said revenue and sales-led subscription revenue are expected to build momentum during fiscal 2027, with the first quarter representing the lowest quarterly growth and the fourth quarter the highest. He cited CRPO converting into revenue and increasing ramped sales capacity as the two main drivers.
Elastic also raised its medium-term fiscal 2029 non-GAAP operating margin target to approximately 25%, up from a previous target of more than 20%. Welihinda said the company remains on track to exceed the Rule of 40 by fiscal 2029 and to reach its medium-term target of more than 20% sales-led subscription revenue growth.
Executives said Elastic expects to expand operating margins as it uses AI internally to improve productivity, while still growing total headcount on a net basis in fiscal 2027. Kulkarni said sales capacity will continue to increase and that the company does not plan meaningful go-to-market changes after changes made roughly eight quarters ago have “settled in very nicely.”
Elastic also said it continued share repurchases during the quarter, buying approximately 650,000 shares for about $40 million. Since the repurchase program began in October, the company has repurchased approximately 4.4 million shares and used about 68% of its $500 million authorization.
About Elastic NYSE: ESTCElastic 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Elastic Right Now?Before you consider Elastic, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Elastic wasn't on the list.
While Elastic currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.
Key Takeaways ESTC reported Q4 earnings of 61 cents per share, up 29.8% year over year and above estimates.Elastic's revenues rose 16%, with subscription revenues contributing 94% of total sales.ESTC guided for fiscal 2027 revenues to be in the range of $1.985B-$2B and EPS of $3.21-$3.29. Elastic N.V. (ESTC - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 8.9%. The figure increased 29.8% year over year.
Elastic’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.
Revenues of $451 million beat the Zacks Consensus Estimate by 1%. The figure rose 16% year over year on a reported basis and 14% on a constant-currency (cc) basis. Customers with ACV above $100,000 ended the quarter at more than 1,720, underscoring continued enterprise traction.
Elastic’s Q4 in DetailsSubscription revenues remained the company's core barometer of health, totaling $422.4 million, up 16.8% year over year and representing 94% of total revenues. Within that, sales-led subscription revenues (subscription revenues excluding Monthly Elastic Cloud) rose 19% year over year to $374.7 million, reflecting strength in larger, sales-driven engagements.
Cloud continued to expand as a meaningful contributor. Annual Elastic Cloud revenues were $169.6 million, up 26% year over year. Monthly Elastic Cloud revenues were $47.8 million, up 3% year over year, keeping total Elastic Cloud at $217.4 million, or 48% of total revenues. Professional services revenues were $28.2 million, up 6% year over year and representing 6.3% of total revenues.
Non-GAAP gross margin was 77.5% (up roughly 50 bps year over year) and non-GAAP operating margin was 14.8% (down approximately 50 bps).
Current remaining performance obligations were $1.203 billion, up 20% year over year, while total remaining performance obligations reached $1.982 billion, up 28% year over year.
Elastic’s Balance Sheet and Cash FlowCash, cash equivalents and marketable securities totaled $1.37 billion as of April 30, 2026, against total debt of $570.9 million.
Operating cash flow was $152.7 million, and adjusted free cash flow was $149.8 million, implying a 33% adjusted free cash flow margin for the quarter.
In the fourth quarter of fiscal 2026, Elastic repurchased about 0.7 million shares at an average price of $61.28 for roughly $40 million. In fiscal 2026, the company repurchased about 4.4 million shares at an average price of $76.91, representing approximately $340 million in aggregate repurchases under its $500 million authorization.
ESTC’s Outlook Implies Continued Growth Into FY27For the first quarter of fiscal 2027, Elastic expects total revenues of $469-$470 million (up 13.1% year over year at midpoint) and sales-led subscription revenues of $392-$393 million (up 15.9% year over year at midpoint). The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 revenues is pegged at $469.58 million, indicating a year-over-year increase of 13.1%.
Non-GAAP operating margin is expected to be about 14.0%, with non-GAAP earnings projected at 57-59 cents per share. The Zacks Consensus Estimate for ESTC’s first-quarter fiscal 2027 earnings is pegged at 65 cents per share, indicating a year-over-year increase of 8.3%.
For fiscal 2027, management expects total revenues to be in the range of $1.985-$2 billion (up 14.6% year over year at midpoint) and sales-led subscription revenues to be in the band of $1.673-$1.688 billion (up 16.9% year over year at midpoint), alongside an expected non-GAAP operating margin of about 19.0% and non-GAAP earnings of $3.21-$3.29 per share.
The Zacks Consensus Estimate for ESTC’s fiscal 2027 revenues is pegged at $1.74 billion, indicating a year-over-year increase of 17%. The Zacks Consensus Estimate for ESTC’s fiscal 2027 earnings is pegged at $2.53, indicating a year-over-year increase of 24%.
ESTC’s Zacks Rank and Stocks to ConsiderCurrently, Elastic carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have rallied 74.9% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.
Shares of Celestica have gained 19.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have jumped 9.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
Elastic remains a deep value opportunity despite a recent 30% rally and strong post-earnings performance. ESTC's complex infrastructure software and consumption-based model insulate it from AI-driven risks impacting simpler, seat-based SaaS peers. Recent fiscal Q4 results exceeded expectations, with bullish forward guidance and growing backlog from AI-native customers.
Software M&A activity has returned in 2026 as public SaaS multiples compress while private equity dry powder and strategic stack consolidation remain abundant. Mid-cap, sticky enterprise software companies with negative book equity, AI-relevant platforms, and visible activist or buyback signaling are the most logical targets. We screened for six attributes:
Digestible market cap between $1 billion and $10 billion Sticky recurring revenue backed by sizeable remaining performance obligations (RPO) AI-relevant platform fit for hyperscaler or larger SaaS roadmaps Margin inflection and free cash flow generation Shareholder activism or aggressive buybacks Constrained or negative shareholders’ equity that complicates standalone scaling The following three names check most of the boxes and are ranked by likelihood of a takeover.
3. Elastic Elastic (NYSE: ESTC | ESTC Price Prediction) is the largest candidate, with a market cap of $7.1 billion. Q4 FY26 revenue hit $450.68 million (+16% year over year), with total RPO of $1.98 billion (+28%) and adjusted free cash flow of $149.81 million at a 33% margin.
The strategic fit is clean. Elastic was selected by Google as a critical security partner for GDC air-gapped environments and won the 2026 Google Cloud Partner of the Year Award for Data Management & AI. CEO Ash Kulkarni said customers are “making larger commitments to Elastic over longer periods of time as we become a critical part of their AI infrastructure.” Logical acquirers include Google Cloud, AWS, or Cisco as a post-Splunk security and observability tuck-in.
Shares closed most recently at $67.59, down 17.3% over the past year, with a forward PE near 21x. Elastic ranks third because it maintains a positive equity base of $1.28 billion and visible standalone profitability, lowering urgency for a sale.
2. Box Box (NYSE: BOX) carries a market cap of $3.8 billion and has been M&A speculation fodder thanks to Starboard’s prior activist position and KKR’s convertible preferred stake. The content cloud generated record non-GAAP operating margin of 27.7% with RPO of $1.6 billion, up 12% year over year, and Box operates with a stockholders’ deficit (negative shareholders’ equity).
Box AI plus expanded AWS partnerships covering Amazon Bedrock, Claude, and Titan, plus customers like Blue Origin, Citadel, Biogen, the FDA, and Naval Air Systems Command, make it a natural bolt-on for Microsoft 365, Oracle, IBM, or Salesforce. PE rollup logic applies given mature growth and durable FCF.
Box closed at $27.66, down 27.4% over one year, with a forward PE of roughly 15x. CEO Aaron Levie sold only 791 shares in the recent vesting cycle, suggesting confidence. Analysts have a consensus target price of $32.50.
1. Appian Appian (NASDAQ: APPN) is the smallest and most digestible target. Market cap stands at roughly $2.0 billion, with Q1 FY26 revenue of $202.18 million (+21.5% year over year), cloud subscriptions of $124.5 million (+25.0%), cloud net annual recurring revenue (ARR) expansion of 115%, and adjusted EBITDA of $26.6 million. Shareholders’ equity is negative $58.97 million, and the board authorized a fresh $50 million share repurchase.
The low-code automation platform is a textbook PE rollup candidate for Thoma Bravo, Vista, or Silver Lake, and a strategic fit for ServiceNow, Salesforce, SAP, or IBM. Federal traction, including a U.S. Army AI transformation enterprise agreement, adds a defensible moat. CRO Mark Dorsey acquired shares at around $19.14 in May, suggesting management views the stock as undervalued.
Shares closed at $26.69, off 24.65% year-to-date, against an EV/revenue multiple of just 2.79x. FY26 guidance calls for revenue of $819 million to $831 million and adjusted EBITDA up to $105 million. Founder Matt Calkins controls voting through a dual-class share structure, a wrinkle any buyer must address. Yet accelerating cloud ARR, margin inflection, a depressed multiple, and the smallest deal size make Appian the most actionable name.
The Consolidation Backdrop The 2026 software tape is built for deals. Public SaaS multiples have compressed while strategic acquirers and private equity sponsors hold record war chests. Elastic offers scale and AI infrastructure leverage. Box offers a content cloud with persistent activist context. Appian offers the cleanest combination of size, multiple, and platform fit. Investors watching M&A consolidation should treat Appian as the bellwether where speculative interest is most likely to translate into a real transaction window.
SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC), the Search AI Company, today introduced an agentic Kubernetes investigation workflow and MCP-based observability skills that diagnose incidents the moment an alert fires. By the time an SRE opens the alert, the root cause has already been identified, evidence has been assembled, and recommended next steps have been surfaced. For teams running Kubernetes at scale, the gap between alert and answer costs time, compounds outages, and wears down.
