
Elastic N.V (ESTC) Stock Forecast & Price Target
Elastic N.V (ESTC) Analyst Ratings
Bulls say
Elastic's positive outlook is supported by significant growth in its Elastic Cloud segment, which represented 49% of total revenue and grew by 22% year-over-year in the most recent quarter. The company has raised its revenue guidance for FY26, anticipating a 16% growth driven by strong customer adoption and expansion strategies, which are expected to enhance profitability through improved operating margins of approximately 16.5%. Additionally, a steady increase in subscription revenue, alongside advancements in product offerings, positions Elastic favorably within the evolving landscape of cloud services and AI-driven applications.
Bears say
Elastic's recent financial performance reflects a slight operating income increase that fell short of expectations, accompanied by a decline in incremental operating margins, leading to a significant after-hours drop in shares. Concerns are heightened by the potential weakening of annual recurring revenue (ARR) growth as the software sales cycle lengthens post-COVID, along with customer adoption rates for new modules not progressing as rapidly as anticipated. Additionally, the delay in some on-premise federal renewals and underwhelming results from self-managed subscriptions, despite a price increase, further reinforce a negative outlook on the company's ability to capitalize on its market opportunities.
This aggregate rating is based on analysts' research of Elastic N.V and is not a guaranteed prediction by Public.com or investment advice.
Elastic N.V (ESTC) Analyst Forecast & Price Prediction
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