Elastic N.V. (ESTC) Faces Downgrade but Shows Positive Financial Results

Font: Financial Modeling Prep  • Nov 21, 2025

• Elastic N.V. (NYSE:ESTC) was downgraded to Neutral by Monness due to a perceived lack of excitement in Q2 performance.
• The company reported adjusted earnings of 64 cents per share, surpassing analyst estimates, and a quarterly revenue of $423 million, indicating a 16% year-over-year increase.
• Despite the downgrade, Elastic's subscription revenue grew to $398 million, a 17% increase year-over-year, showcasing the company's financial resilience and growth potential.

Elastic N.V. (NYSE: ESTC), known as the Search AI Company, specializes in providing search-powered solutions for various applications. The company recently faced a downgrade from Monness, which shifted its stock rating to Neutral on November 21, 2025. This decision was influenced by a perceived lack of excitement in Elastic's second-quarter performance, as reported by TheFly.

Despite the downgrade, Elastic's financial results for Q2 2026 showed some positive aspects. The company reported adjusted earnings of 64 cents per share, surpassing the analyst estimate of 58 cents. Additionally, Elastic's quarterly revenue reached $423 million, exceeding the expected $418 million. This revenue marked a 16% increase compared to the previous year, or 15% when adjusted for constant currency.

Elastic's subscription revenue also demonstrated growth, reaching $398 million, which reflects a 17% year-over-year increase, or 16% on a constant currency basis. However, the stock price experienced a decline, dropping to $82.08, a decrease of 7.02% with a change of $6.20. The stock fluctuated between a low of $82.01 and a high of $91.09 on the day of the earnings call.

The company's market capitalization stands at approximately $8.72 billion, with a trading volume of 2,974,153 shares on the NYSE. Over the past year, ESTC has reached a high of $118.84 and a low of $70.15. Despite the recent downgrade, Elastic's financial performance and market presence continue to be of interest to analysts and investors alike.