Elastic stock jumped late Thursday after the enterprise data software company reported fiscal first quarter results ahead of expectations. The positive market reaction comes on the heels of similar rallies that followed earnings this week from data software peers MongoDB and Snowflake.
San Francisco-based Elastic said that it earned an adjusted 60 cents per share for the July-ended quarter, up 71% from a year earlier. That easily beat the 42 cents per share that analysts polled by FactSet were forecasting. Sales increased 20% to $415 million, compared to analyst estimates of $397 million.
For the current quarter, Elastic guided for sales of $416 million. Prior to the company posting its results, analysts were projecting $410 million for Elastic's fiscal Q2 revenue. Elastic also raised its full-year sales guidance. The company said it expects sales of $1.684 billion at the midpoint of its given range. In late May, the company guided for $1.663 billion in fiscal 2026 sales. Elastic's fiscal year will end April 30.
Elastic Chief Executive Ash Kulkarni said that Elastic's growth "directly demonstrates the value that Elastic's Search AI Platform delivers to our customers."
Year-over-year revenue growth for the company's Elastic Cloud offering — a key focus of investors — accelerated to 24% from 23% in the previous April-ended quarter.
On the stock market today, Elastic stock rose more than 21% to 106.97 in recent after-hours action.
Elastic Stock: Down 11% This Year
Elastic provides search software for enterprises, along with a broad suite of data software tools that run on cloud providers such as Microsoft's Azure, Amazon's Amazon Web Services and Alphabet's Google Cloud. The company's stock gained popularity in 2023 and parts of 2024 as a potential AI beneficiary.
But shares slumped earlier this year amid fears that AI algorithms could prove a threat to many software business models, rather than provide a boost. Elastic stock took a big hit following its fiscal Q4 results in late May. The company provided lower-than-expected sales guidance for its current fiscal 2026.
Overall, Elastic stock is down about 11% this year. However, shares have rallied this week following strong earnings results from data software peers MongoDB and Snowflake. The iShares Expanded Tech-Software Sector exchange traded fund — which includes more than 100 enterprise software players — gained 1.5% Thursday. The fund had been down nearly 5% for the month of August prior to those gains.
Elastic stock is ahead 9% this week, as of Thursday's close.
Coming into the report, Elastic stock had an IBD Composite Rating of 57 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
