Elastic Beats Q3 Estimates but Shares Fall 15% on Q4 Guidance

Font: Financial Modeling Prep  • Feb 27, 2026

Elastic N.V. (NYSE: ESTC) reported third-quarter results that exceeded analyst expectations, though shares declined more than 15% intra-day Friday as investors focused on the company’s fourth-quarter outlook.

The Search AI company posted adjusted earnings per share of $0.73, exceeding the $0.65 consensus estimate by $0.08. Revenue rose 18% year over year to $450 million, ahead of analyst expectations of $438.38 million.

Subscription revenue increased 19% to $426 million, while sales-led subscription revenue advanced 21% to $376 million.

For the fourth quarter of fiscal 2026, Elastic forecast revenue between $445 million and $447 million, with a midpoint of $446 million representing 15% year-over-year growth. Adjusted earnings per share are projected between $0.55 and $0.57.

For full fiscal 2026, the company expects revenue between $1.734 billion and $1.736 billion, with the midpoint slightly above the $1.72 billion consensus estimate. Adjusted earnings per share are projected between $2.50 and $2.54, compared with the $2.45 consensus.

Elastic’s customer base with annual contract value above $100,000 expanded to more than 1,660, up from over 1,460 in the prior-year quarter. The net expansion rate was approximately 112%.