Elastic Cloud Revenue Jumps 20 Percent

Elastic(NYSE:ESTC) reported first quarter fiscal 2026 results on August 28, 2025, delivering $415 million in revenue (up 20% YoY) and a 16% non-GAAP operating margin. Management raised full-year revenue and EPS guidance, highlighting strong enterprise and AI-driven workload growth. The following insights detail Elastic's momentum in generative AI, security, and subscription revenue durability.

Elastic Cloud surpassed 2,200 customers using the platform for generative AI (GenAI) workloads, with more than 330 spending over $100,000 annually. The company added more million-dollar average contract value (ACV) customers in this category than in the previous two quarters combined, reflecting increased AI workload intensity and early-stage consumption growth.

This rapid expansion in high-value GenAI customers demonstrates Elastic's competitive positioning as a foundational platform for enterprise-scale AI, supporting a long-term revenue growth trajectory as adoption broadens.

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Source Fool.com