Elastic reported third‑quarter fiscal 2026 revenue of $450 million, an 18% year‑over‑year increase from $382 million in the same period a year earlier. Non‑GAAP diluted earnings per share rose to $0.73 from $0.63, beating the consensus estimate of $0.64 by $0.09. The revenue lift was driven by a 21% jump in subscription‑based sales, reflecting strong demand for the company’s AI‑powered search and observability solutions and a growing customer base of over 3,000 enterprises using its platform for AI use cases.
The company’s subscription business continued to expand, with sales‑led subscription revenue up 21% YoY. Elastic’s positioning as “The Search AI Company” has resonated with customers seeking real‑time context for large‑language‑model applications, and the company’s hybrid cloud flexibility has helped it displace legacy vendors in key markets. Management noted that “Elastic delivered yet another outstanding quarter, beating the high end of guidance across all key metrics and showcasing the power of our platform and our business model.”
Elastic completed a $186 million share‑repurchase program during the quarter, buying back approximately 2.4 million ordinary shares at an average price of $76.92 per share. The program now represents 60% of the company’s $500 million share‑repurchase plan and underscores confidence in the business’s cash‑flow generation. The company also achieved GAAP profitability for the first time in nine years, a milestone that signals improved cost discipline and operational leverage.
For the full fiscal year 2026, Elastic raised its revenue guidance to $1.734 billion–$1.736 billion, up from the prior range of $1.734 billion–$1.736 billion, and lifted its non‑GAAP operating margin guidance to 16.3% from 15.5%. Q4 fiscal 2026 revenue guidance was set at $445 million–$447 million, reflecting a modest sequential increase. These guidance adjustments indicate management’s confidence in sustained demand for AI‑enabled services while acknowledging a slight slowdown in the fourth quarter.
Elastic’s earnings beat and guidance highlight the company’s strong execution, growing subscription mix, and effective cost control. The results reinforce the narrative that Elastic’s AI‑centric strategy is driving revenue growth and margin expansion, positioning the company for continued success in the evolving data‑platform market.
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