Elastic Posts 20% Revenue Jump in Q1
Elastic (NYSE:ESTC), a software company known for its Search AI Platform that powers search, observability, and security solutions, reported earnings for the quarter ended July 31, 2025, on August 28, 2025. The company’s results did not surpass Wall Street expectations for Q1 FY2026, with reported GAAP revenue of $415.3 million and non-GAAP earnings per share (EPS) of $0.60, compared to analyst estimates centering around $425.73 million in GAAP revenue and $0.64 non-GAAP diluted EPS. Performance was bolstered by robust growth in its cloud-based offerings and strong uptake from enterprise clients. Despite the beat, management set a more cautious tone for the next period, forecasting revenue growth to slow to the mid-teens in FY2026 and projecting nearly flat sequential revenue. Overall, the quarter showed notable progress in margins and cash generation, but forward guidance signals management is bracing for a more measured pace ahead.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report.
Elastic delivers software to help organizations search, observe, and secure their data. Its main Search AI Platform offers tools for real-time data exploration, security event detection, and application performance monitoring. The company’s core products include Elasticsearch (search software) and Kibana (data visualization), available on a cloud subscription or for customers to run on their own systems.
Source Fool.com
