For the quarter ended January 2026, Elastic (ESTC) reported revenue of $449.88 million, up 17.8% over the same period last year. EPS came in at $0.73, compared to $0.63 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $438.15 million, representing a surprise of +2.68%. The company delivered an EPS surprise of +13.67%, with the consensus EPS estimate being $0.64.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Financial Data and Key Metrics Changes - Total revenue for Q3 was $450 million, representing an 18% growth year-over-year and 16% on a constant currency basis [24][25] - Sales-led subscription revenue grew to $376 million, an increase of 21% as reported and 19% on a constant currency basis [25] - Current remaining performance obligations (CRPO) reached approximately $1.06 billion, growing 19% as reported and 15% on a constant currency basis [25][26] - Non-GAAP operating margin was 18.6%, with subscription gross margins at 82% and total gross margins at 78% [28][29] Business Line Data and Key Metrics Changes - Sales-led subscription revenue accelerated, with a notable increase in commitments from both self-managed and cloud offerings [25][27] - The number of customers with an annual contract value (ACV) over $100,000 grew to over 1,660, marking a 14% increase [26] - 28% of customers in the greater than $100K cohort are utilizing Elastic for AI, indicating strong demand for AI capabilities [27] Market Data and Key Metrics Changes - The company experienced strong deal momentum across all geographies, with multi-year commitments indicating customer confidence in the Elastic platform [26] - The demand for AI solutions is driving customer expansion, with significant growth in AI-related use cases [27][86] Company Strategy and Development Direction - The company is focused on becoming a critical data platform in the age of AI, leveraging its capabilities to support both cloud and self-managed environments [24][27] - The introduction of new features like Agent Builder and Elastic Workflows aims to enhance the platform's capabilities for context-driven AI applications [19][22] - The strategy emphasizes bridging the gap between LLMs and proprietary data, positioning Elastic as a leader in context engineering for AI applications [13][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing market demand and the company's ability to drive profitable growth, with expectations for continued strong performance in the upcoming quarters [29][34] - The company anticipates total revenue for fiscal 2026 to be in the range of $1.734 billion to $1.736 billion, representing approximately 17% growth at the midpoint [32] - Management highlighted the importance of AI adoption among customers, suggesting that as more customers reach the $100K ACV mark, growth could accelerate [40][75] Other Important Information - The company has made significant progress on its $500 million share repurchase program, returning approximately $186 million to shareholders during Q3 [30] - The introduction of the Elasticsearch GPU plugin aims to enhance AI application deployment speed and efficiency [18] Q&A Session Summary Question: Insights on AI customer growth and potential acceleration - Management noted that trends for generative AI customers remain strong, with potential for accelerated growth as more customers reach the $100K mark [39][40] Question: Importance of context in AI applications - The CEO emphasized the need for a comprehensive data platform that can handle various data types and provide accurate context for AI applications [42][43] Question: Performance of self-managed versus cloud customers - Management highlighted the strength in self-managed business, particularly as customers prefer to keep sensitive data within their control [48][49] Question: Future competition from frontier models - The CEO stated that AI models will not displace Elastic but rather depend on it for providing the necessary context for effective AI applications [56][57] Question: Impact of recent CISA win on government contracts - Management confirmed that the CISA win is expected to lead to additional agency engagements, enhancing the company's position in the government sector [68] Question: Concerns about CRPO growth rates - Management reassured that CRPO growth is strong, with expectations for continued improvement as AI adoption increases among customers [73][75]

Elastic (NYSE:ESTC) Q3 2026 Earnings call February 26, 2026 05:00 PM ET Speaker10Good afternoon, welcome to the Elastic third quarter fiscal 2026 earnings results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, pl ...

February 26, 2026 Corporate Overview and Q3FY26 Financial Results Forward Looking Statements; Use of Non-GAAP Measures Elastic, the Search AI Company, combines the precision of search with the intelligence of AI to help everyone find answers that matter from all data. In real time. At scale. This presentation and the accompanying oral presentation contain forward-looking statements that involve substantial risks and uncertainties, which include, but are not limited to, statements regarding our expected fina ...

Exhibit 99.1 Elastic Reports Third Quarter Fiscal 2026 Financial Results • Total revenue was $450 million, an increase of 18% year-over-year, or 16% on a constant currency basis • Total subscription revenue was $426 million, an increase of 19% year-over-year, or 17% on a constant currency basis • Sales-led subscription revenue (calculated as subscription revenue excluding Monthly Elastic Cloud) was $376 million, an increase of 21% year-over-year, or 19% on a constant currency basis • Current remaining perfo ...

Analysts on Wall Street project that Elastic (ESTC) will announce quarterly earnings of $0.64 per share in its forthcoming report, representing an increase of 1.6% year over year. Revenues are projected to reach $438.15 million, increasing 14.7% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company announces its ...

Core Insights - Elastic has launched jina-embeddings-v5-text, a new family of multilingual embedding models with 0.2B and 0.6B parameters, which deliver state-of-the-art performance in search and semantic tasks [1][2]. Model Performance - Despite their smaller size, these models outperform larger models with 7B to 14B parameters and achieve best-in-class results on the MMTEB benchmark for comparable models [2]. - The compact size of the models allows for efficient hybrid search, reducing infrastructure costs and enabling faster query responses, particularly in resource-constrained environments [2]. Availability and Deployment - The jina-embeddings-v5-text models are available through various channels, including open-weight models on HuggingFace and the Elastic Inference Service (EIS), which provides GPU-accelerated inference [3][5]. - Users can access these models via an online API or host them locally using vLLM, llama.cpp, or MLX, with detailed instructions available on Hugging Face [5]. Model Specifications - The family includes two models: jina-embeddings-v5-text-small (239M parameters) and jina-embeddings-v5-text-nano (677M parameters), optimized for four key tasks: retrieval, text matching, classification, and clustering [4][9]. Company Overview - Elastic integrates search technology with artificial intelligence to transform data into actionable insights, serving thousands of companies, including over 50% of the Fortune 500 [7].

Core Viewpoint - Elastic is preparing to present at an investor conference to highlight its strategic initiatives, financial health, and future growth plans, which could significantly influence investor sentiment and stock price [1] Group 1: Financial Performance - Morgan Stanley has set a price target of $80 for Elastic (ESTC), indicating a potential price increase of about 31.08% from its current price of $61.03 [2] - The stock currently trades at $61.55, reflecting a slight increase of 0.85% or $0.52 [2] - Elastic's market capitalization is approximately $6.49 billion, with a trading volume of 557,374 shares, indicating the company's size and investor interest [4] Group 2: Stock Volatility - The stock's trading range today has been between $60.05 and $62.31, indicating some volatility [3] - Over the past year, ESTC has experienced a high of $117.49 and a low of $56.70, showcasing its fluctuating nature [3]

Core Viewpoint - Elastic is set to announce its third quarter fiscal 2026 earnings results on February 26, 2026, after the U.S. market closes, followed by a conference call to discuss the financial results and business outlook [1]. Group 1: Earnings Announcement - The financial results for the third quarter fiscal 2026, which ended on January 31, 2026, will be released after market close on February 26, 2026 [1]. - A conference call will be held at 2:00 p.m. PT / 5:00 p.m. ET on the same day to review the financial results and business outlook [1]. Group 2: Company Overview - Elastic, known as the Search AI Company, integrates search technology with artificial intelligence to transform data into actionable insights [1]. - The Elastic Search AI Platform supports various solutions, including search, observability, and security, and is utilized by over 50% of Fortune 500 companies [1].

Core Insights - Elastic N.V. (NYSE:ESTC) is recognized as a high-growth cybersecurity stock, particularly in the AI-driven market, with recent developments enhancing its service offerings [1][2]. Group 1: Product Developments - The company announced the Elastic Inference Service, allowing organizations to access cloud-hosted GPU inference capabilities without needing GPU hardware, thus simplifying the adoption of semantic search for self-managed customers [1][3]. - Elastic launched Agent Builder, a platform enabling developers to create AI agents for accessing and analyzing enterprise data, which integrates with Microsoft Foundry and Agent Framework [4]. - Elastic Workflows enhances the functionality of AI agents by allowing them to execute actions across multiple systems, combining AI reasoning with rule-based automation to improve enterprise data use and security [5]. Group 2: Market Position and Performance - Elastic N.V. serves over 50% of the Fortune 500, providing a platform for real-time data ingestion, searching, analyzing, and visualizing, positioning itself as a leader in the search AI sector [6]. - Despite a recent price target cut from $130 to $110 by Rosenblatt Securities due to macroeconomic concerns, the firm maintains a Buy rating and anticipates better-than-expected results for the third quarter of fiscal 2026 [3].