Elastic Earnings Lift Guidance After Q1
Elastic earnings showed Q1 FY2027 acceleration and a raised fiscal 2027 guide on Aug. 27, 2026, sending traders to reprice growth around search AI demand.
KEY TAKEAWAYS
- Elastic reported Q1 revenue of $478 million, a 15% year-over-year rise.
- The company posted non-GAAP diluted EPS of $0.70 and operating cash flow of $132 million.
- Management raised full-year fiscal 2027 guidance, citing search AI, security, and observability demand.
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Elastic N.V. (NYSE: ESTC) reported accelerating earnings in the first quarter of fiscal 2027, attributing growth to rising demand for search AI, security, and observability, according to a press release on August 27, 2026. These trends supported a stronger contract backlog and improved cash flow.
Quarterly Results and Cash Flow
For the quarter ended July 31, 2026, Elastic reported total revenue of $478 million, a 15% increase year over year. Subscription revenue reached $449 million, also up 15%, with sales-led subscription revenue rising 18% (17% in constant currency). The company identified subscription growth as the main driver of its revenue gains.
Elastic posted a GAAP operating loss of $24 million but reported non-GAAP operating income of $77 million. On a per-share basis, it recorded a GAAP net loss of $0.16 and non-GAAP diluted earnings per share of $0.70.
Operating cash flow totaled $132 million, and adjusted free cash flow was $143 million. As of the quarter end, cash, cash equivalents, and marketable securities amounted to $1.5 billion.
Demand Metrics and Guidance
The company reported current remaining performance obligations (cRPO) of $1.2 billion, up 21% year over year, and total remaining performance obligations (RPO) of $1.9 billion, a 27% increase. Elastic’s net expansion rate was about 111%, and it had more than 1,800 customers with annual contract values exceeding $100,000.
Elastic raised its full-year fiscal 2027 guidance, framing the outlook around continued demand for search AI, security, and observability products rather than a broader macroeconomic forecast.
Filings and Timing
Elastic issued the release titled “Elastic Reports First Quarter Fiscal 2027 Financial Results” and filed it as Exhibit 99.1 on a Form 8-K with the SEC on August 27, 2026. An investor-relations notice confirmed the earnings release would be posted after the U.S. market close that day.
