Track market-moving stories before they get noisy

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC) and today announced a new multi-year partnership with Audi Revolut F1® Team, building on the team's existing use of Elastic technology to support its engineering software operations. Elastic joins as Official Race Partner for the 2026 United States Grand Prix in Austin, Texas, and will become its Official Search and Observability Supplier starting from the 2027 season. The agreement brings an established technical collaboration onto a global.

Elastic Announces AlertZero, a Team of Specialized AI Agents for the Security Operations Lifecycle Elastic (NYSE: ESTC) today introduced AlertZero, the agentic layer built into Elastic Security, with a team of specialized agents that learn from and adapt to how a security team already works. The agents handle alert triage, investigation, threat hunting, detection tuning and forensic analysis, so each alert gets an evidence-backed answer. This puts analysts on the path to an equivalent of inbox zero: a short queue of recommended actions instead of thousands of raw alerts. Analysts retain full control over which actions are automated and which require human judgement: they choose how much work to delegate to AlertZero and when they need to make the decisions. Releasing into Technical Preview, AlertZero works with any model in any deployment, so teams can adopt AI on their terms.

Security teams face the same persistent bottleneck: alert volume has outpaced the analysts available to work through it, and false positives add to a queue that was already too large to clear. As attackers' use of AI evolves, new problems keep compounding this issue. In a recent high-profile attack, an autonomous AI agent generated more than 17,000 events across a production environment in only four days, moving from a dataset-pipeline exploit to credential theft and lateral movement. The individual signals were detectable, but understanding the attack required connecting them.

That is exactly what AlertZero was built for. It continuously correlates and investigates activity while helping teams reduce false positives that clog the alert queue, with the flexibility to adapt as threats evolve.

AlertZero organizes that work around Watches: specialized named groups of agents with defined responsibilities that run on triggers and schedules. Each Watch focuses on a specific area of security operations and carries its findings into a shared investigation record:

Triage Watch pares down the alert queue through enrichment, decides true or false, closes the noise with a reason, and escalates the real alerts.Hunt Watch handles the legwork by continuously threat hunting, driven by what runs in it and what the threat research says.Detection Watch learns from the other Watches: proposes tuning for noisy rules and new rules for gaps. It will not change a rule without approval.Forensics Watch provides specialist depth for forensics, malware analysis, and exploit paths when work requires skills a typical SOC may not have on staff.Security investigations rarely stay inside one data source or one model. Analysts may need to change models as an investigation develops, based on the task and the evidence they are working with — a flexibility many AI security tools can't offer. AlertZero is designed to provide that flexibility. It runs on Elastic's full data foundation, including structured and unstructured data, logs, and metrics, and works with whatever model an organization chooses across Elastic Cloud, self-managed, or air-gapped deployments.

"What makes AlertZero different is that our team who built it have sat in the SOC analyst's seat,” said Mike Nichols, general manager, Security, Elastic. "We focused on building a platform that gives teams enough visibility and control to deploy agentic automation at the scale and scope they can handle effectively. Every Watch in AlertZero aligns directly with key SOC responsibilities, and the level of autonomy is customizable for each Watch. Security teams get help where they need it most, with the model and deployment that are most effective for their needs.”

Customers can extend AlertZero using the same Agent Builder skills and Elastic Workflows that Elastic used to build it, adding workflows specific to their environment without leaving the platform.

Availability

AlertZero will be available to Elastic Security customers as a Technical Preview in Elastic Cloud, self-managed, and air-gapped environments. It builds on existing Elastic Security capabilities, including Attack Discovery, ES|QL, Agent Builder, and Elastic Workflows.

Receive updates on AlertZero by signing up here.

Additional Materials

Blog: Inside what's coming with AlertZero: connecting investigation, hunting, and response

About Elastic

Elastic (NYSE: ESTC) integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. Elasticsearch, which is the foundation for its search, observability, and security solutions, is used by thousands of companies, including more than 75% of the Fortune 100. 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/20261008390511/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Ausbil Investment Management Ltd bought a new stake in Elastic N.V. (NYSE:ESTC – Free Report) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 7,402 shares of the company’s stock, valued at approximately $679,000.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in ESTC. Sequoia Financial Advisors LLC acquired a new stake in shares of Elastic in the second quarter valued at about $211,000. Engineers Gate Manager LP boosted its position in Elastic by 43.7% during the second quarter. Engineers Gate Manager LP now owns 129,697 shares of the company’s stock valued at $7,395,000 after purchasing an additional 39,468 shares during the last quarter. Squarepoint Ops LLC boosted its position in Elastic by 1,139.5% during the second quarter. Squarepoint Ops LLC now owns 97,798 shares of the company’s stock valued at $5,576,000 after purchasing an additional 89,908 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Elastic in the second quarter valued at approximately $319,000. Finally, Syon Capital LLC bought a new position in Elastic in the second quarter valued at approximately $3,300,000. 97.03% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Elastic In other Elastic news, insider Carolyn Herzog sold 5,485 shares of the stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $87.78, for a total value of $481,473.30. Following the transaction, the insider directly owned 112,954 shares of the company’s stock, valued at $9,915,102.12. This represents a 4.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Mark Dodds sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $92.58, for a total transaction of $925,800.00. Following the sale, the executive owned 278,538 shares of the company’s stock, valued at $25,787,048.04. This trade represents a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 2,585,641 shares of company stock worth $234,551,366 in the last ninety days. Insiders own 12.70% of the company’s stock.

Elastic Stock Down 1.4% ESTC stock opened at $93.30 on Thursday. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44. The firm has a market capitalization of $9.80 billion, a PE ratio of 26.14, a PEG ratio of 7.94 and a beta of 1.03. Elastic N.V. has a 1-year low of $42.05 and a 1-year high of $108.00. The business’s 50 day simple moving average is $85.23 and its 200 day simple moving average is $65.67. Elastic (NYSE:ESTC – Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The company reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.12. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The firm had revenue of $478.11 million during the quarter, compared to analysts’ expectations of $469.75 million. During the same period in the previous year, the business posted $0.60 earnings per share. The company’s revenue for the quarter was up 15.2% compared to the same quarter last year. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. As a group, research analysts anticipate that Elastic N.V. will post 0.65 EPS for the current year.

Analysts Set New Price Targets A number of equities research analysts have recently issued reports on the company. DA Davidson upped their price objective on Elastic from $60.00 to $80.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 26th. Scotiabank raised their target price on shares of Elastic from $58.00 to $84.00 and gave the company a “sector perform” rating in a research note on Friday, August 28th. Guggenheim boosted their target price on shares of Elastic from $106.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Robert W. Baird upped their price target on shares of Elastic from $95.00 to $120.00 and gave the stock an “outperform” rating in a research report on Friday, August 28th. Finally, Piper Sandler reiterated a “hold” rating on shares of Elastic in a research note on Friday, August 28th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and thirteen have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $96.52.

Get Our Latest Stock Report on ESTC

Elastic Company Profile (Free Report)

Elastic N.V. (NYSE: ESTC) develops search, observability and security software for organizations that need to collect, analyze and act on large volumes of data. Its platform helps users search structured and unstructured information, monitor applications and infrastructure, detect security threats and build artificial intelligence-powered experiences.

The company’s principal offerings include Elasticsearch, its distributed search and analytics engine; Kibana, a visualization and data exploration interface; and Elastic Cloud, a managed cloud service for deploying Elastic products.

Featured Stories Five stocks we like better than Elastic Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up

Receive News & Ratings for Elastic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Elastic and related companies with MarketBeat.com's FREE daily email newsletter.

Investors in Elastic N.V. (ESTC - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the November 20, 2027 $25.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Elastic, but what is the fundamental picture for the company? Currently,Elastic is a Zacks Rank #1 (Strong Buy) in the Internet - Software Industry that ranks in the Top 35% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimate for the current quarter, while four have dropped their estimate. The net effect has taken our Zacks Consensus Estimate to move from 83 cents per share to 81 centsper share in the same time period.

Given the way analysts feel aboutElastic right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Elastic N.V. (ESTC) Discusses New Metrics Offering and Observability Platform Enhancements Transcript

On September 21, 2026, Elastic NV ESTC shares rose 3.2% to a current price of $89.71, reflecting a year-to-date increase of 18.9%. The stock has fluctuated between a 52-week low of $42.05 and a high of $108.00 over the past year.

GF Value™ verdict: The current price is $89.71, which is 17.2% below the GF Value™ of $108.40.GF Score™ is 82/100, indicating a strong overall performance based on multiple factors.Notable signal: Insider activity reflects a net selling of $111.2 million over the past 12 months, despite $0.7 million in purchases.Is ESTC Overvalued or Undervalued?Elastic NV is currently trading below its GF Value™ of $108.40, suggesting that the stock is undervalued by approximately 17.2%. The GF Value™ is GuruFocus' proprietary intrinsic value estimate, which combines historical trading multiples, past business growth, and future performance estimates to determine a fair price for a stock. This provides a margin of safety for potential investors, indicating that there may be an opportunity to acquire shares at a discount based on this valuation.

However, while the undervaluation presents a potential opportunity, investors should exercise caution. The GF Valuation label indicates that ESTC is considered "modestly undervalued," suggesting that while the stock may have significant upside potential, market conditions and investor sentiment can still pose risks that could affect price performance. It's essential for investors to consider these factors alongside the attractive valuation metrics.

How Does ESTC's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)25.1x185.1xForward P/E26.7xN/ACurrently, Elastic NV's P/E (TTM) ratio stands at 25.1x, significantly lower than its 5-year median P/E of 185.1x. This analysis shows that the stock is trading well below its historical valuation levels, which aligns with the GF Value™ verdict that suggests the stock is undervalued. The lower P/E indicates that investors may be getting a good deal relative to the historical earnings potential of the company.

What Does ESTC's GF Score™ Tell Us?The GF Score™ measures a stock's performance based on various factors, providing a comprehensive view of its overall quality and potential. Elastic NV has a GF Score™ of 82/100, indicating strong performance, particularly in growth and valuation metrics.

MetricRatingGF Score™82Financial Strength6/10Profitability4/10Growth9/10Valuation8/10Momentum10/10The strongest areas for Elastic NV are its growth rank of 9/10 and momentum rank of 10/10, indicating robust growth prospects and positive price momentum. However, the weaker profitability rank of 4/10 suggests that the company may face challenges in converting revenue into profit, which could be a concern moving forward. Overall, the strong GF Score™ reflects a well-rounded stock with notable strengths but also highlights areas where improvement is needed.

What Are Gurus and Insiders Doing with ESTC?Currently, five gurus hold Elastic NV stock, with four adding to their positions and one trimming their stake in recent quarters. This indicates a generally positive sentiment among institutional investors regarding the stock's future performance.

In terms of insider activity, over the past 12 months, insiders have sold $112.0 million worth of shares while purchasing only $0.7 million, resulting in a net selling of $111.2 million. This trend of significant insider selling may raise some concerns regarding the company's outlook from those closest to the business. Investors should monitor insider actions as they can be indicative of management's confidence in the company's future performance.

What This Means for InvestorsBased on the analysis, Elastic NV ESTC appears to be undervalued according to the GF Value™ assessment, presenting a potential opportunity for investors seeking growth in the software sector. However, the notable insider selling and mixed profitability signals may warrant a cautious approach. For more detailed insights into Elastic NV, including its financial metrics and performance indicators, visit the Elastic NV (ESTC) stock page.

Frequently Asked QuestionsWhat is ESTC's GF Score™?

Elastic NV's GF Score™ is 82/100, indicating that the stock is performing strongly across multiple factors, including growth and valuation metrics.

Is ESTC overvalued or undervalued?

According to the GF Value™ assessment, ESTC is currently undervalued, trading 17.2% below its GF Value™ of $108.40.

What is ESTC's P/E ratio?

The P/E (TTM) ratio for Elastic NV is 25.1x, which is significantly lower than its 5-year median P/E of 185.1x, indicating that the stock is trading at a much lower valuation compared to its historical levels.

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].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

-

Security analysts, SREs and app engineers can search across serverless projects, regions and cloud providers

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC) today announced the general availability of cross-project search (CPS) for Elastic Cloud Serverless, enabling teams to query across multiple serverless projects without moving or duplicating data. Security analysts, SREs and app engineers get a unified search experience across regions, cloud providers and project types, without the operational overhead of centralizing data.

Organizations keep data in separate projects for good reasons, such as data residency, compliance, tenant data isolation and organizational structure. But that separation can make it harder to work across the data.

SOC teams may need to move data between regional projects to investigate a threat, while SREs may need to correlate signals across different environments. While centralizing the data can solve the visibility problem, it requires teams to move and store data twice and manage the operational complexity of maintaining version compatibility. Existing solutions either require customers to accept single-cloud lock-in, or take on the operational burden of version coordination and server setup just to run a federated query.

Cross-project search helps break down data silos across distributed architectures without compromising data isolation, residency, or boundaries that systems rely on, at minimal cost. Teams link projects directly in the Elastic Cloud UI in a few clicks, with authentication handled at the organization level by Elastic's control plane and role-based access controls maintaining complete security scope across linked projects. Once linked, teams can query across those projects without moving the underlying data.

Cross-cluster search (CCS), a similar capability available in Elastic Cloud Hosted, is already used by more than 80% of large ECH customers with complex architectures. CPS delivers similar federated search capabilities to Elastic Cloud Serverless without requiring individual remote cluster connections.

"We relied heavily on cross-cluster search to investigate alerts, hunt threats and run detection rules across multiple environments. Elastic’s cross-project search gives us the same capability across our serverless infrastructure, but it's easier to configure. It also lets us safely segregate customer and workload data, with dedicated deployments for each customer or use case, such as separate security and observability environments,” said Callum Brown, head of Security Engineering, Acumen Cyber. “We get independent scaling, permissions, and resilience, without mixing data, and our engineers spend less time managing infrastructure and more time focused on security, while still querying everything from a single interface."

With general availability, CPS introduces new features:

Scale: CPS supports up to 100 linked projects by default across Search, Observability, Security, and Vector Database workloads. Customers that need to connect more than 100 projects can work with Elastic to provision a higher limit. Enhanced Machine Learning and AI capabilities: ML anomaly detection jobs and data transforms can run seamlessly across linked projects. Alongside Agent Builder, which can also retrieve context from multiple linked projects in a single query, CPS acts as a foundational building block for production agents operating on distributed data. Complete Access Control: A user's access to data across linked projects is based on their permissions for each project, regardless of where the query originates. Users see only the data they are authorized to access. Reduced costs: Because data stays where it is, customers pay for the queries they run, not for storing and moving the same bytes twice. Full Project Routing: Teams can control which projects a query targets using predefined tags for region, cloud provider, and project alias, as well as custom tags to target any subset of linked projects with precision. Programmatic Access: A new user role enables users beyond organization owners to generate Cloud API keys for cross-project search queries, making it easier for teams to build pipelines and applications on CPS. "Building a global SOC or a borderless observability practice used to mean choosing between operational simplicity and data control," said Ajay Nair, general manager, Elasticsearch and Platform, Elastic. "Teams either paid to centralize everything, or they lived with fragmented visibility. With CPS, teams don't have to make these difficult trade-offs. The data stays in the project where it belongs, while teams can query it from a single interface, without involving the compliance team every time someone needs to run a query."

Availability

Cross-project search is generally available in Elastic Cloud Serverless.

If you are already running Elastic Cloud Serverless, CPS is available in your project settings today. Link your projects, open Discover, and run your first cross-project query. If you are a new user, get started here.

Additional Materials

Blog: Elastic announces GA of cross-project search on Serverless, enabling teams to query across all linked projects without moving a byte

About Elastic

Elastic (NYSE: ESTC) integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. The Elasticsearch Platform, which is the foundation for its search, observability, and security solutions, is used by thousands of companies, including more than 75% of the Fortune 100. 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.

More News From Elastic N.V.

Back to Newsroom

Elastic N.V. (NYSE:ESTC – Get Free Report) CTO Shay Banon sold 84,207 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $84.64, for a total transaction of $7,127,280.48. Following the completion of the sale, the chief technology officer owned 3,910,563 shares in the company, valued at approximately $330,990,052.32. This trade represents a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Shay Banon also recently made the following trade(s):

On Thursday, September 10th, Shay Banon sold 6,201 shares of Elastic stock. The stock was sold at an average price of $85.19, for a total value of $528,263.19. On Wednesday, September 9th, Shay Banon sold 155,586 shares of Elastic stock. The stock was sold at an average price of $86.82, for a total value of $13,507,976.52. On Friday, September 4th, Shay Banon sold 80,583 shares of Elastic stock. The stock was sold at an average price of $92.65, for a total value of $7,466,014.95. On Thursday, September 3rd, Shay Banon sold 23,702 shares of Elastic stock. The shares were sold at an average price of $94.11, for a total value of $2,230,595.22. On Thursday, September 3rd, Shay Banon sold 180,000 shares of Elastic stock. The stock was sold at an average price of $94.07, for a total value of $16,932,600.00. On Wednesday, September 2nd, Shay Banon sold 165,171 shares of Elastic stock. The stock was sold at an average price of $90.26, for a total transaction of $14,908,334.46. On Tuesday, September 1st, Shay Banon sold 111,127 shares of Elastic stock. The shares were sold at an average price of $92.60, for a total transaction of $10,290,360.20. On Monday, August 31st, Shay Banon sold 200,000 shares of Elastic stock. The shares were sold at an average price of $96.47, for a total transaction of $19,294,000.00. Elastic Price Performance Elastic stock opened at $85.18 on Thursday. The firm has a 50-day moving average price of $76.33 and a 200-day moving average price of $61.69. The firm has a market capitalization of $8.94 billion, a PE ratio of 23.86, a price-to-earnings-growth ratio of 7.15 and a beta of 1.03. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44. Elastic N.V. has a 12-month low of $42.05 and a 12-month high of $108.00.

Elastic (NYSE:ESTC – Get Free Report) last issued its quarterly earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.58 by $0.12. The company had revenue of $478.11 million for the quarter, compared to the consensus estimate of $469.75 million. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The firm’s revenue was up 15.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.60 EPS. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. As a group, equities research analysts forecast that Elastic N.V. will post 0.65 EPS for the current year. Analyst Upgrades and Downgrades A number of analysts have recently issued reports on ESTC shares. Morgan Stanley boosted their target price on shares of Elastic from $66.00 to $75.00 and gave the company an “equal weight” rating in a research note on Friday, August 28th. Barclays lifted their price objective on shares of Elastic from $68.00 to $94.00 and gave the company an “overweight” rating in a report on Monday, August 24th. UBS Group boosted their price objective on shares of Elastic from $85.00 to $105.00 and gave the company a “buy” rating in a research report on Friday, August 28th. DA Davidson upped their target price on shares of Elastic from $60.00 to $80.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 26th. Finally, William Blair began coverage on shares of Elastic in a research report on Friday, May 22nd. They set an “outperform” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $96.52.

Read Our Latest Report on ESTC

Institutional Trading of Elastic Several institutional investors and hedge funds have recently made changes to their positions in ESTC. Pictet Asset Management Holding SA increased its position in Elastic by 43.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 6,492,717 shares of the company’s stock valued at $324,550,000 after purchasing an additional 1,958,219 shares during the period. First Trust Advisors LP boosted its stake in shares of Elastic by 516.1% during the first quarter. First Trust Advisors LP now owns 2,627,636 shares of the company’s stock valued at $131,356,000 after purchasing an additional 2,201,140 shares in the last quarter. Geode Capital Management LLC increased its holdings in Elastic by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 1,724,508 shares of the company’s stock valued at $130,124,000 after buying an additional 49,198 shares during the period. Temasek Holdings Private Ltd increased its holdings in Elastic by 9.3% during the fourth quarter. Temasek Holdings Private Ltd now owns 1,294,465 shares of the company’s stock valued at $97,654,000 after buying an additional 109,608 shares during the period. Finally, Panagora Asset Management Inc. raised its stake in Elastic by 12.5% in the fourth quarter. Panagora Asset Management Inc. now owns 1,031,378 shares of the company’s stock worth $77,807,000 after buying an additional 114,965 shares in the last quarter. 97.03% of the stock is currently owned by institutional investors.

Elastic News Summary Here are the key news stories impacting Elastic this week:

Positive Sentiment: AI search expansion: Elastic launched the Elasticsearch Vector Database, designed to help organizations build AI-powered search and retrieval-augmented generation applications. The product strengthens Elastic’s position in the growing vector database and enterprise AI markets, potentially supporting future cloud adoption and revenue growth. Elastic launches Elasticsearch Vector Database for AI search Positive Sentiment: Positive cybersecurity validation: Elastic Security earned the only perfect protection score in AV-Comparatives’ 2026 Endpoint Prevention and Response Test. Its 100% active and passive response scores and low operational footprint could improve competitive positioning in the cybersecurity market. Elastic Security AV-Comparatives test results Positive Sentiment: Improving analyst expectations: Scotiabank raised its FY2027 EPS forecast to $0.70 from $0.21, while reports cited an average analyst price target of roughly $110.86 and approximately 29.6% implied upside. Elastic’s latest quarterly results also exceeded expectations, with revenue up 15.2% year over year. Zacks Elastic price target analysis Neutral Sentiment: Valuation and momentum: Elastic’s shares remain substantially above their long-term moving averages, but the elevated valuation means investors will likely expect continued AI-driven growth and earnings improvement. Negative Sentiment: Insider selling: CTO Shay Banon sold 84,207 shares for approximately $7.1 million, following several other sales in recent weeks. He still owns about 3.91 million shares, making this a modest reduction, but the repeated selling could weigh on sentiment. Elastic CTO SEC Form 4 filing About Elastic (Get Free Report)

Elastic N.V. develops search, observability and security software for organizations that need to find, analyze and act on data. Its core technology, Elasticsearch, is a distributed search and analytics engine that can process structured and unstructured information from applications, websites, logs and other sources.

The company offers its platform through Elastic Cloud, a managed cloud service available across major public-cloud environments, as well as through self-managed deployments.

Featured Articles Five stocks we like better than Elastic 3 Luxury Consumer Brands to Watch in a Beaten-Down Sector Jackson’s Record Quarter Powers the Bull Case Holiday Shopping Is Almost Here—And Target May Be Ready to Win Big AI Panic Hit Tech Stocks—But NVIDIA’s Growth Engine Is Intact

Receive News & Ratings for Elastic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Elastic and related companies with MarketBeat.com's FREE daily email newsletter.

Elastic Security Achieves the Only Perfect Score in the 2026 AV-Comparatives Endpoint Prevention and Response Test Elastic (NYSE: ESTC) today announced that Elastic Security achieved the only perfect protection score in AV-Comparatives' 2026 Endpoint Prevention and Response (EPR) Test, earning Certified Leader status, the highest distinction AV-Comparatives awards in the test. Elastic sits at the very top of this year’s Certified Leader group, with 100% Active and 100% Passive Response scores and the lowest modeled operational footprint of any product tested. This is the second consecutive year Elastic has earned Certified Leader status.

Elastic was the only vendor to block and report all 50 threats at the first phase of the test, before any progressed to Internal Propagation or Asset Breach. Elastic also had one of the lowest total costs of ownership (TCO) among the 14 vendors tested.

Prevention strength matters because AI-powered attacks no longer move at human speed. Adversaries now deploy automated toolchains that compress the time from initial access to lateral movement, data exfiltration, and persistence to minutes, not hours. At that velocity, detection and response alone cannot keep pace; the window to intervene after an intrusion begins is too narrow. Elastic stops more threats before they execute, matching machine-speed attacks with machine-speed prevention.

AV-Comparatives tested 14 vendors against 50 multi-phase attack scenarios built on techniques from the MITRE ATT&CK framework. Phase one covers the first three MITRE ATT&CK chain tactics: Initial Access, Execution, and Persistence. The scenarios included executables, scripts, Office add-ins, USB-propagated payloads, fileless execution techniques, AMSI bypasses, and EDR unhooking. This year’s test also incorporated AI-assisted development methods to build testing tools and scenario variations to better reflect how attacker tooling has evolved.

"Elastic Security achieved Certified Leader status in the AV-Comparatives EPR Test 2026,” said Andreas Clementi, Founder and CEO of AV-Comparatives. “The product prevented and detected every one of the tested attack scenarios already at the first stage of compromise with no operational accuracy costs and no workflow delays for the user. It is a clean, complete result that reflects real strength in enterprise threat prevention.”

“AI is compressing attack timelines, and security teams can’t afford more alerts to triage. They need to stop threats before they turn into investigations," said Mike Nichols, general manager, Security, Elastic. "Stopping every attack at the first phase of this test shows the strength of prevention in Elastic Security. A threat stopped at the endpoint is an alert that never opens, an investigation that never starts, and an incident that never escalates."

This result extends Elastic Security’s strong performance across recent AV-Comparatives testing. Across the last three Business Security Tests spanning 2025 and 2026, Elastic was the only vendor to achieve 100% malware protection in every cycle, including the most recent test covering March through June 2026, where Microsoft and CrowdStrike were among vendors tested.

Elastic Defend, Elastic’s native endpoint protection, is available for Windows, macOS, and Linux across cloud, on-premise, hybrid, and air-gapped environments.

Learn more about Elastic Security at elastic.co/security

Additional Materials

Blog: The only perfect Endpoint Prevention and Response (EPR) score in 2026 belongs to ElasticReport: AV-Comparatives EPR 2026 Full ReportAbout Elastic

Elastic (NYSE: ESTC) integrates its deep expertise in search technology with artificial intelligence to help everyone transform all of their data into answers, actions, and outcomes. The Elasticsearch Platform, which is the foundation for its search, observability, and security solutions, is used by thousands of companies, including more than 75% of the Fortune 100. 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/20260915214066/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Elastic N.V. (NYSE:ESTC – Get Free Report) CTO Shay Banon sold 155,586 shares of Elastic stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $86.82, for a total value of $13,507,976.52. Following the sale, the chief technology officer directly owned 4,000,971 shares of the company’s stock, valued at approximately $347,364,302.22. The trade was a 3.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Shay Banon also recently made the following trade(s):

On Thursday, September 10th, Shay Banon sold 6,201 shares of Elastic stock. The stock was sold at an average price of $85.19, for a total value of $528,263.19. On Friday, September 4th, Shay Banon sold 80,583 shares of Elastic stock. The shares were sold at an average price of $92.65, for a total value of $7,466,014.95. On Thursday, September 3rd, Shay Banon sold 23,702 shares of Elastic stock. The shares were sold at an average price of $94.11, for a total value of $2,230,595.22. On Thursday, September 3rd, Shay Banon sold 180,000 shares of Elastic stock. The stock was sold at an average price of $94.07, for a total transaction of $16,932,600.00. On Wednesday, September 2nd, Shay Banon sold 165,171 shares of Elastic stock. The stock was sold at an average price of $90.26, for a total transaction of $14,908,334.46. On Tuesday, September 1st, Shay Banon sold 111,127 shares of Elastic stock. The shares were sold at an average price of $92.60, for a total transaction of $10,290,360.20. On Monday, August 31st, Shay Banon sold 200,000 shares of Elastic stock. The shares were sold at an average price of $96.47, for a total transaction of $19,294,000.00. Elastic Stock Down 0.0% ESTC stock opened at $83.44 on Friday. The firm has a market cap of $8.76 billion, a PE ratio of 23.37, a PEG ratio of 8.08 and a beta of 1.03. Elastic N.V. has a 1 year low of $42.05 and a 1 year high of $108.00. The company has a fifty day simple moving average of $74.79 and a 200 day simple moving average of $61.07. The company has a current ratio of 1.81, a quick ratio of 1.81 and a debt-to-equity ratio of 0.44.

Elastic (NYSE:ESTC – Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.58 by $0.12. Elastic had a net margin of 20.84% and a negative return on equity of 0.35%. The firm had revenue of $478.11 million for the quarter, compared to the consensus estimate of $469.75 million. During the same period in the prior year, the business posted $0.60 earnings per share. The business’s quarterly revenue was up 15.2% on a year-over-year basis. Elastic has set its FY 2027 guidance at 3.290-3.370 EPS and its Q2 2027 guidance at 0.800-0.820 EPS. Sell-side analysts anticipate that Elastic N.V. will post 0.64 EPS for the current fiscal year. Key Stories Impacting Elastic Here are the key news stories impacting Elastic this week:

Positive Sentiment: Elastic introduced Elasticsearch Vector Database, a serverless offering designed for large-scale vector search and artificial-intelligence applications. The product is intended to simplify deployment, support hundreds of billions of vectors and strengthen Elastic’s position in the growing AI-search market. Elastic Introduces Serverless Vector Database Positive Sentiment: Wedbush began coverage with an “outperform” rating and a $125 price target, implying substantial upside from the recent trading level. The recommendation reflects optimism about Elastic’s AI, search and cloud growth opportunities. Positive Sentiment: Short interest dropped 39% between mid-August and August 31 to 3.87 million shares, or roughly 4.2% of shares outstanding. Reduced bearish positioning and only 1.1 days of short-interest coverage could provide technical support and limit short-selling pressure. Neutral Sentiment: Elastic’s latest quarterly results were strong, with $0.70 in adjusted EPS versus the $0.58 consensus and revenue of $478.1 million versus $469.8 million expected. Revenue grew 15.2% year over year, and fiscal 2027 EPS guidance was set at $3.29 to $3.37; however, these results were reported previously and may already be reflected in the stock’s valuation. Negative Sentiment: Several executives, including CEO Ashutosh Kulkarni, CFO Navam Welihinda, CRO Mark Dodds and CAO Jane Bone, sold shares on September 9. The sales totaled about 54,888 shares and $4.8 million, but were made to cover tax withholding on vested equity awards, making them less concerning than discretionary selling. Negative Sentiment: Repeated insider selling following a strong rally could still weigh on sentiment, particularly as investors assess whether the company’s AI-driven growth can justify its elevated valuation. Wall Street Analysts Forecast Growth A number of brokerages recently weighed in on ESTC. Bank of America raised their price objective on Elastic from $90.00 to $108.00 and gave the company a “neutral” rating in a research note on Friday, August 28th. William Blair started coverage on Elastic in a research report on Friday, May 22nd. They set an “outperform” rating for the company. Cantor Fitzgerald increased their price target on Elastic from $91.00 to $100.00 and gave the company a “neutral” rating in a report on Friday, August 28th. JPMorgan Chase & Co. lifted their price target on shares of Elastic from $93.00 to $105.00 and gave the company an “overweight” rating in a research report on Friday, August 28th. Finally, Piper Sandler restated a “hold” rating on shares of Elastic in a research note on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and thirteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Elastic presently has an average rating of “Moderate Buy” and a consensus target price of $96.52.

Get Our Latest Report on ESTC

Hedge Funds Weigh In On Elastic Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Focus Partners Wealth bought a new stake in shares of Elastic during the first quarter valued at approximately $494,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Elastic by 17.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,159 shares of the company’s stock worth $98,000 after buying an additional 171 shares in the last quarter. Invesco Ltd. lifted its position in shares of Elastic by 11.7% during the 2nd quarter. Invesco Ltd. now owns 95,332 shares of the company’s stock worth $8,039,000 after buying an additional 9,990 shares during the period. EverSource Wealth Advisors LLC lifted its position in shares of Elastic by 400.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,110 shares of the company’s stock worth $178,000 after buying an additional 1,688 shares during the period. Finally, Cerity Partners LLC boosted its stake in Elastic by 24.7% in the 2nd quarter. Cerity Partners LLC now owns 30,545 shares of the company’s stock valued at $2,576,000 after buying an additional 6,056 shares in the last quarter. 97.03% of the stock is currently owned by institutional investors.

About Elastic (Get Free Report)

Elastic N.V. develops search, observability and security software for organizations that need to find, analyze and act on data. Its core technology, Elasticsearch, is a distributed search and analytics engine that can process structured and unstructured information from applications, websites, logs and other sources.

The company offers its platform through Elastic Cloud, a managed cloud service available across major public-cloud environments, as well as through self-managed deployments.

See Also Five stocks we like better than Elastic Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity?

Receive News & Ratings for Elastic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Elastic and related companies with MarketBeat.com's FREE daily email newsletter.

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC) today announced Elasticsearch Vector Database, a new serverless offering purpose-built for large-scale vector search and AI applications. Elasticsearch is already one of the most widely used platforms for vector workloads worldwide and now developers get an optimized database with expert-tuned defaults to build high-quality vector search applications quickly. Developers bring their documents and queries, and Elastic handles the embeddings, tu.

When a developer needs to make sense of a chaotic mountain of telemetry data, they call on Elastic (ESTC -3.69%). The company provides an essential search-driven platform that powers observability, security, and enterprise search workflows, essentially acting as the digital librarian for modern infrastructure. With the stock trading around $88.42 as of Sept. 8, 2026, and having climbed roughly 17% year-to-date, Elastic has shifted its focus from burning cash for growth to building a profitable, AI-integrated software engine.

Our proprietary Hidden Gems scoring system assigns Elastic an overall Superscore of 80 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39). This 80 places the company in the Top ~10% of every company we score. This analysis serves as one data-driven signal to guide your research, pairing the core strengths against the persistent risks to help you weigh the investment case for yourself.

Why Elastic Has an 80 SuperscoreStrong profitability pivot: The company successfully transitioned to GAAP profitability in fiscal 2026, reporting $368 million in net income and demonstrating that its platform can generate significant cash as it scales.AI product momentum: Rapid integration of generative AI tools like 'Search AI' and agentic workflows has deepened its utility, keeping enterprise customers locked into its ecosystem.Operational scale gains: Expanding gross margins to 76% in fiscal 2026 proves that the company is effectively managing the infrastructure costs of its cloud-first, consumption-based subscription model.Market relevance: Its status as a leader in observability and security keeps the platform essential to large enterprises, with over 1,720 customers now paying more than $100k in annual recurring revenue.Why Is Elastic's Superscore Not Higher?Stretched valuation multiples: An EV-to-EBITDA ratio of 502x prices in massive growth, leaving little room for error if expansion slows or if guidance slips.Intense competitive environment: The company competes for market share against well-funded hyperscalers and specialized rivals, preventing it from establishing an unassailable data moat.Normalization of growth: While healthy, the current mid-teen revenue growth represents a maturation phase compared to the hyper-growth periods of the company's earlier history.AI execution risk: Much of its AI-driven revenue is tied to upselling within its existing base, so it still faces the challenge of capturing entirely new segments to maintain its trajectory.Elastic's high capital efficiency -- ranking in the Top ~1% -- means it generates substantial profits relative to its small base of tangible assets. This allows the business to turn each point of revenue growth into outsize returns, a factor that helps justify the current premium investors pay for the stock.

ScoreScore (out of 100)RankSupporting Data PointProduct 1Y87Top ~8%Strong AI innovation like 'Agent Builder' is driving high-value enterprise adoption.Product 5Y71Top ~29%Consistent 23% revenue CAGR from 2022 to 2026 shows successful cloud-native transformation.Financial 1Y84Top ~8%Fiscal 2026 saw a pivotal shift to profitability with $368 million in net income.Financial 5Y75Top ~16%Disciplined cost management reduced the debt-to-equity ratio from 1.43 in 2022 to 0.46 in 2026.Leaders63Bottom ~40%Management provides granular visibility into key SaaS metrics like cRPO and cloud expansion.AI43Top ~20%The company is effectively embedding AI into its core tools but lacks a proprietary data moat.Valuation Risk70Top ~20%The stock trades at a trailing P/E of 27.83, reflecting investor expectations for future growth.Is Elastic Right For Your Portfolio?This stock warrants a closer look if...

You are looking for the best small-cap tech stocks that have successfully matured into profitable, cloud-native platforms.You believe that AI-driven search and observability will remain critical infrastructure for the modern enterprise.You may want to keep researching before buying if...

You are concerned about valuation risk given the high EV-to-EBITDA ratio.You are uncomfortable with the intense competition from cloud giants that could limit long-term pricing power.The Superscore provides a data-driven signal to help organize your research, but it is not a buy recommendation. Please weigh these points against your own risk tolerance and financial objectives before making any investment decisions.

Image source: The Motley Fool.

My Five-year prediction for Elastic stockElastic posted robust Q1 2027 results at the end of August, and the stock rose 48% last month. It's not the only provider of enterprise search services, but most of its rivals are open-source software packages managed by global communities. It's a promising position in the AI boom, as Elastic's tools can help data-rich companies organize and clean up large quantities of messy data before feeding it into proprietary AI and machine learning systems.

That said, I'm looking at a turnaround story in progress. Elastic's revenues have grown consistently in recent years, but I can't say the same for its cash flows and EBITDA. An EV-to-EBITDA ratio above 500 results from close-to-breakeven profits.

On the upside, Elastic is no longer just a search box for websites. Its vector database and Search AI platform have turned it into a context layer for the generative AI era, helping enterprises retrieve and ground data in real time as they rush to build proprietary AI agents.

Over the next five years, I expect Elastic to complete its transition from a high-growth disruptor to a cornerstone of the enterprise software stack. If it can sustain mid-teens revenue growth while pushing non-GAAP operating margins toward 20%, the company could top $3 billion in annual revenue by 2031. Paired with a stable price-to-sales ratio over the same period, Elastic's stock might double by 2031. Just don't expect a smooth ride.

The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.

Shares of Elastic (ESTC -4.49%) soared 48.3% in August 2026, according to data from S&P Global Market Intelligence. The AI-driven enterprise search and cybersecurity veteran saw two distinct surges last month. First, it followed a broad rally in software-as-a-service (SaaS) stocks, and then it followed up with a great earnings report.

Premium Feature

Moneyball Superscore

75/100

Today's Change

(

-4.49

%) $

-4.32

Current Price

$

91.81

One big month, two catalysts The first surge started on Aug. 13.

Elastic's stock rose 11.5%, with no market-moving news from the company itself. Instead, the whole software sector caught a bid that day. Cooler-than-expected inflation numbers had traders betting on rate cuts again, and there was a rumor that private equity firms wanted to acquire fellow SaaS specialist Workday (WDAY -5.38%).

The purported buyout target rose 17.8% on the news, and many SaaS names gained 10% or more. Workday's rumored buyout talks are still up in the air. The mid-August sector gains are holding firm.

On top of that bullish foundation, Elastic reported Q1 2027 results after the closing bell on Aug. 27. It closed the next day 19.3% higher.

Revenue rose 15% year-over-year to $478 million. Earnings jumped 17% to $0.70 per share. The results smashed Wall Street's consensus targets at $470 million and $0.58 per share, respectively.

The company landed record numbers of large contracts with at least $100,000 annual fees. The portion of large clients using Elastic's premium AI features was 37%, nearly double 21% in the year-ago period.

There was a lot to like in this report, and Elastic's stock set a fresh 52-week high for good reason.

Image source: Getty Images.

How Elastic stacks up against Teradata Teradata (TDC -2.57%) offers a useful contrast to Elastic.

Both companies operate in enterprise data and analytics, but from opposite angles. Teradata is essentially a legacy data warehousing vendor working through a slow transition to the cloud. Elastic has built its growth narrative around AI-native search, observability, and security, and now it wants to manage enterprise data.

The numbers reflect that divide: Teradata's revenue has been roughly flat to declining in the last five years, while Elastic's compound annual growth rate (CAGR) on the top line was 23.4%.

So the two companies often face off over the same large-client negotiation tables, and Elastic usually has the upper hand. Adding old-school data warehousing features to a modern search engine for messy data appears to work better than the reverse.

Elastic's stock looks affordable at 25.7x trailing earnings, while Teradata's 5.9x multiple carries an air of desperation. If you're looking for a low-priced play on data management in the AI era, I recommend kicking Elastic's tires before Teradata's. For what it's worth, Teradata's stock fell 6.4% in August, never catching a ticket to the SaaS surge.

Elastic (ESTC - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Elastic, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe company is expected to earn $0.81 per share for the current quarter, which represents a year-over-year change of +26.6%.

Over the last 30 days, the Zacks Consensus Estimate for Elastic has increased 91.13% because two estimates have moved higher while three have gone lower.

Current-Year Estimate RevisionsThe company is expected to earn $3.33 per share for the full year, which represents a change of +29.6% from the prior-year number.

The revisions trend for the current year also appears quite promising for Elastic, with eight estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 155.4%.

Favorable Zacks RankThanks to promising estimate revisions, Elastic currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Elastic because of its solid estimate revisions, as evident from the stock's 30% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

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 also includes the Zacks Style Scores.

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.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

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 investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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 +23.8% 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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.

Momentum investors should take note of this Computer and Technology stock. ESTC has a Momentum Style Score of A, and shares are up 23% over the past four weeks.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.06 to $3.25 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) today announced that it has nominated Julia Liuson to its Board of Directors. Liuson is a veteran technology executive with more than three decades of experience spanning software engineering, AI, developer platforms and enterprise technology. She most recently served as President of Microsoft's Developer Division, where she led technology and business strategy for Microsoft's developer tools and Azure developer platform. Her portfolio also i.

Elastic (ESTC - Free Report) reported $478.11 million in revenue for the quarter ended July 2026, representing a year-over-year increase of 15.1%. EPS of $0.70 for the same period compares to $0.60 a year ago.

The reported revenue represents a surprise of +1.82% over the Zacks Consensus Estimate of $469.56 million. With the consensus EPS estimate being $0.58, the EPS surprise was +20.69%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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: $29.38 million compared to the $27.21 million average estimate based on seven analysts. The reported number represents a change of +10% year over year.Revenue- Subscription: $448.74 million versus the seven-analyst average estimate of $442.37 million. The reported number represents a year-over-year change of +15.5%.Revenue- Subscription- Elastic Cloud- Total: $235.21 million versus the six-analyst average estimate of $228.85 million. The reported number represents a year-over-year change of +20.1%.Revenue- Subscription- Other subscription: $213.53 million versus the six-analyst average estimate of $213.51 million. The reported number represents a year-over-year change of +10.8%.Revenue- Subscription- Elastic Cloud- Annual Elastic Cloud: $185 million compared to the $178.08 million average estimate based on three analysts.Revenue- Subscription- Elastic Cloud- Monthly Elastic Cloud: $50.2 million versus $49.78 million estimated by three analysts on average.View all Key Company Metrics for Elastic here>>>

Shares of Elastic have returned +23% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Elastic N.V. (ESTC) Q1 2027 Earnings Call Transcript

Elastic NV (NASDAQ:ESTC) on Thursday reported better-than-expected first-quarter financial results and raised its FY27 guidance.

Elastic posted quarterly adjusted earnings of 70 cents per share, beating market estimates of 58 cents per share. The company’s sales came in at $478.113 million versus expectations of $469.745 million.

Elastic raised its FY2027 adjusted EPS guidance from $3.21-$3.29 to $3.29-$3.37 and also increased sales guidance from $1.985 billion-$2.000 billion to $1.998 billion-$2.010 billion.

“Elastic delivered a strong start to fiscal 2027, beating our guidance across all key metrics,” said Ash Kulkarni, chief executive officer, Elastic. “AI is reshaping the enterprise technology stack, and organizations are making deliberate choices about where to build and how to observe and secure their applications and data. Our record quarter-over-quarter net customer additions to our >$100K ACV cohort and continued strength in cRPO and RPO growth reflect the durability of that demand. We enter the year with growing momentum across Search & AI, Security, and Observability and confidence in the trajectory of our business.”

Elastic shares jumped 21.8% to $101.95 in pre-market trading.

These analysts made changes to their price targets on Elastic following earnings announcement.

Baird analyst Shrenik Kothari maintained the stock with an Outperform rating and raised the price target from $95 to $120. B of A Securities analyst Koji Ikeda maintained the stock with a Neutral and raised the price target from $90 to $108. Cantor Fitzgerald analyst Thomas Blakey maintained the stock with a Neutral and raised the price target from $91 to $100. Guggenheim analyst Howard Ma maintained the stock with a Buy and raised the price target from $106 to $120. Rosenblatt analyst Blair Abernethy maintained the stock with a Buy and boosted the price target from $83 to $115. Trending

Considering buying ESTC stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Elastic ESTC is experiencing a surge following a robust Q1 performance, exceeding expectations for Q2 guidance and raising its FY27 outlook. This reflects improved sales execution leading to faster growth. Investors are encouraged by strong forward-demand indicators, record additions of large customers, increasing adoption of AI, and a new $500 million share repurchase authorization, despite net expansion metrics not yet showing improvement.

Sales-led subscription revenue grew by 18% to $399 million, up from 16% constant-currency growth in Q4. The current Remaining Performance Obligations (cRPO) rose 21% to $1.2 billion, while total RPO increased by 27% to $1.9 billion, indicating a trend towards larger, longer-term customer commitments to ESTC’s platform. ESTC welcomed over 80 new customers spending more than $100,000 annually, marking the largest quarterly increase and bringing the total to over 1,800. This group now accounts for 90% of sales-led subscription revenue. Notably, over 670 of these customers are utilizing ESTC's AI solutions, increasing AI penetration from around 21% last year to 37%, with AI users expanding slightly faster than non-AI customers. For Q2, ESTC anticipates a non-GAAP EPS of $0.80-$0.82 and revenue of $486-$487 million, slightly above FactSet consensus. The FY27 revenue guidance has been raised to $1.998-$2.010 billion, with sales-led subscription revenue projected between $1.682-$1.694 billion and adjusted EPS between $3.29-$3.37, driven by a stronger pipeline and improved sales productivity. Despite a slight decline in Net Expansion Rate (NER) to 111% from 112%, indicating that increased bookings and AI adoption have yet to enhance overall customer expansion, ESTC expects growth in total and sales-led subscriptions to accelerate in the second half of the year. The company aims for Q4 to deliver the fastest growth of the year while maintaining a 19.4% non-GAAP operating margin and a 21.5% adjusted free cash flow margin for FY27. In Q1, ESTC repurchased approximately $40 million in shares and has utilized $380 million of its initial $500 million repurchase program. The newly authorized $500 million indicates confidence in cash generation and expands future repurchase capacity, although the timing of purchases remains unspecified.The significant takeaway is that ESTC's quarterly success is complemented by improving forward indicators and a heightened annual outlook, rather than solely relying on expense management. The growth in cRPO and RPO, record enterprise additions, and enhanced AI adoption bolster management's expectations for acceleration in the second half. However, the decline in NER to 111% indicates that recent activity has not yet translated into overall customer expansion. ESTC must now convert long-term commitments and AI adoption into sustained consumption while maintaining its improving margins. Key upcoming focuses include Q2 execution, stabilization of NER, continued growth of high-spending customers, and progress towards achieving over 20% sales-led subscription growth in the medium term.

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].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC) announced the internet availability of proxy materials for its 2026 Annual General Meeting of shareholders to be held on October 15, 2026, at 5:00 PM, Central European Summer Time. The Elastic annual report on Form 10-K for the fiscal year ended April 30, 2026, and proxy statement for its 2026 Annual General Meeting of shareholders have been filed with the U.S. Securities and Exchange Commission (SEC) and may be viewed on the Elastic website.

Elastic (NYSE:ESTC) reported first-quarter fiscal 2027 revenue of $478 million, up 15% from a year earlier, as the company cited continued sales execution and demand across its search and AI, security and observability offerings.

Sales-led subscription revenue rose 18% to $399 million, while non-GAAP operating margin reached 16.2%. Chief Executive Officer Ash Kulkarni said the company exceeded all of its guided metrics and began the fiscal year with accelerating constant-currency growth in both total revenue and sales-led subscription revenue.

“Customer demand was strong across all solution areas, especially in search and AI and security,” Kulkarni said. Large-Customer Growth and Contracted Commitments Elastic ended the quarter with more than 1,800 customers with annual contract value of at least $100,000. The company added more than 80 net new customers to that cohort during the quarter, its largest increase to date. Customers in the group accounted for 90% of sales-led subscription revenue, compared with 87% a year earlier.

Chief Financial Officer Navam Welihinda said the growth reflected improvements in sales capacity, productivity and pipeline generation, as well as ongoing consumption of commitments secured in fiscal 2026.

Current remaining performance obligations, or CRPO, totaled $1.2 billion, growing 21% as reported and 20% on a constant-currency basis. Total RPO was $1.9 billion, up 27%. Kulkarni said the results indicated that customers were increasingly making multiyear commitments to Elastic’s platform as they pursue AI-related transformations.

Elastic’s net expansion rate was 111%, compared with 112% in the prior quarter. Welihinda said the metric is calculated on a trailing four-quarter basis and should improve within four quarters as the company’s constant-currency revenue growth accelerates through fiscal 2027.

AI, Security and Observability Initiatives Kulkarni said Elastic is positioning Elasticsearch as a data store and retrieval layer for AI applications that require text, vector and hybrid search across structured and unstructured data. During the quarter, the company released VectorDB index mode and auto-calibration capabilities intended to provide vector-search performance without manual tuning.

The company also extended Jina’s multimodal and multilingual semantic-search capabilities, including embedding and re-ranker models, to on-premises and air-gapped deployments. Elastic said its Agent Builder product added agent observability, monitoring and human-in-the-loop approval workflows.

More than 37% of Elastic’s customers with ACV above $100,000 were using its AI features at the end of the quarter, up from about 21% a year earlier. The company said that represented more than 670 customers, including 70 net additions during the first quarter. Welihinda said customers using AI capabilities have a higher growth propensity than customers that do not use those features.

In observability, Elastic relaunched its metrics offering and introduced Columnar Mode in Elasticsearch 9.5 as a technical preview. Kulkarni said the index mode is designed for time-series data and can reduce storage costs by 20% to about three bytes per metric sample. The company also added native Prometheus ingestion and PromQL support.

Elastic acquired Deductive AI, which it described as a provider of AI site reliability engineering technology. Kulkarni said Deductive’s reinforcement-learning harness can automate complex investigations by using information from code repositories, Elastic alerts, Slack, PagerDuty and ServiceNow to build decision trees based on previous and ongoing investigations.

On the security side, Elastic said its Attack Discovery offering now autonomously investigates and validates threats. Kulkarni said the company is targeting an “AI-driven SOC,” or security operations center, in response to a faster-moving cyberthreat environment. Elastic was named a leader in IDC’s MarketScape for worldwide SIEM and a strong performer in Forrester’s Wave for extended detection and response, according to the company.

Profitability, Capital Returns and Outlook On a non-GAAP basis, Elastic reported subscription gross margin of 81%, total gross margin of 77% and adjusted free-cash-flow margin of 30%. The free-cash-flow result included $13 million in cash paid for restructuring and other charges related to organizational changes announced in June.

The company repurchased approximately 800,000 shares for about $40 million during the quarter. Since launching its $500 million repurchase program in October 2025, Elastic has spent $380 million to repurchase 5.2 million shares as of the end of the first quarter.

Elastic raised its fiscal 2027 outlook following the quarter. For the second quarter, it expects:

Total revenue of $486 million to $487 million, representing about 15% growth at the midpoint. Sales-led subscription revenue of $407.5 million to $408.5 million, representing about 16.9% growth at the midpoint. Non-GAAP operating margin of approximately 19%. Non-GAAP diluted earnings per share of $0.80 to $0.82. For fiscal 2027, Elastic forecast total revenue of $1.998 billion to $2.010 billion and sales-led subscription revenue of $1.682 billion to $1.694 billion. The company expects non-GAAP operating margin of about 19.4%, adjusted free-cash-flow margin of 21.5% and non-GAAP diluted earnings per share of $3.29 to $3.37.

Welihinda said Elastic expects growth in total revenue and sales-led subscription revenue to accelerate during the second half of the fiscal year, with the fourth quarter producing the highest year-over-year growth rate. The company also expects positive GAAP operating margin in the second quarter and for the full fiscal year.

Kulkarni also announced that Caryn Marooney will leave Elastic’s board after a long tenure and that Julia Liuson, formerly president of Developer Tools at Microsoft, has been nominated to join the board.

About Elastic (NYSE:ESTC) Elastic N.V. operates as a search and analytics company, offering a suite of open source and subscription-based solutions for search, observability and security use cases. Its flagship product, Elasticsearch, enables fast and scalable full-text search and analytics across large volumes of structured and unstructured data. Complementary tools such as Kibana provide visualization capabilities, while Beats and Logstash serve as lightweight data shippers and data processing pipelines, respectively.

The company was founded in 2012 by Shay Banon, who serves as chief technology officer, and Steven Schuurman.

SAN FRANCISCO--(BUSINESS WIRE)--Elastic (NYSE: ESTC) has completed the acquisition of Deductive AI, an AI-powered investigation platform that helps engineering teams identify and resolve production issues faster. The acquisition advances Elastic's goal to set the standard for production incident investigation by bringing more AI-powered investigation and automation to Elastic Observability. As modern applications grow more distributed, interconnected and complex, engineers have more telemetry t.

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.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that 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 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 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.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and 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.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 26.5% for the current fiscal year.

For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $3.25 per share. ESTC 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.

Bank of America Corp DE trimmed its holdings in Elastic N.V. (NYSE: ESTC) by 33.3% in the undefined quarter, according to its most recent disclosure with the SEC. The firm owned 697,402 shares of the company's stock after selling 348,378 shares during the period. Bank of America Corp DE owned approximately 0.67% of