ESTC shares jumped 19.31 percent Friday after Elastic reported stronger-than-expected fiscal Q1 results and raised its full-year outlook.
The enterprise search firm reported $478 million in revenue, up 15 percent year over year, driven by new customer acquisitions and expanded spending from existing clients. The company grew its high-value customer base—those with annual contract value exceeding $100,000—to more than 1,800 from 1,720 in Q4 fiscal 2026 and 1,550 in Q1 fiscal 2026.
Adjusted operating income rose 19 percent to $77 million. Adjusted EPS grew 17 percent to $0.70, beating consensus estimates of $0.58.
The company raised full-year adjusted EPS guidance to $3.29 to $3.37. CEO Ash Kulkarni said, "We enter the year with growing momentum across search and AI, security, and observability and confidence in the trajectory of our business." Elastic's AI-integrated search technology helps customers extract actionable insights from their data, a capability that has become central to its pitch to enterprise buyers facing legacy technology stack modernization.
