Elastic (ESTC) Stock Surges on Strong Q1 Earnings and Upbeat Guidance

Elastic shares rallied sharply after the AI search company reported fiscal first-quarter results that handily beat Wall Street estimates. Adjusted earnings of 60 cents per share crushed the 42-cent consensus, while revenue of $415.29 million exceeded expectations by nearly 4%. The stock gained 5.9% in premarket trading following a 5.39% jump on Thursday.

Subscription revenue grew 20% year-over-year, with Elastic Cloud sales climbing 24%. CEO Ash Kulkarni emphasized the company outperformed its own guidance across all metrics. Despite an 11% year-to-date decline, ESTC remains 15% higher than its price twelve months ago.

For the current quarter, Elastic projects adjusted EPS between 56-58 cents on $415-$417 million in revenue. The bullish outlook suggests continued momentum in enterprise adoption of AI-powered search solutions.