Shares of Elastic N.V. (NYSE:ESTC) jumped more than 10% in premarket trading after the company raised both its revenue and margin outlook during its Investor Day. Analysts at Barclays and RBC Capital Markets praised the company for successfully balancing product innovation with a cautious financial strategy.
Barclays said Elastic struck the “right balance between product excitement and conservative outlook,” pointing to continued progress in productizing its observability, security, and search offerings while “adding genAI capabilities to drive future differentiation.” The bank added that Elastic’s updated growth and free cash flow margin framework “does not feel by any means to be a stretch target, which leaves the potential for further upside.”
Elastic raised its full-year revenue guidance to a range of $1.697 billion to $1.703 billion, up from the prior $1.679 billion to $1.689 billion, and increased its non-GAAP operating margin target to 16.25%. The company also lifted its Q2 midpoint revenue guidance to $418 million from $416 million.
Barclays further noted a new $500 million share repurchase program, with more than half of the planned buyback expected to be executed in fiscal 2026.
RBC Capital said it came away from the event “feeling good about their positioning in an increasingly agentic world,” emphasizing Elastic’s goal to become “an important component of the GenAI/agentic tech stack.” The firm pointed to new product launches, including Agent Builder and Inference Service, alongside raised fiscal 2026 guidance.
RBC also underscored Elastic’s medium-term goals of “20%+ revenue growth and 20%+ NG OM and adjusted FCF,” noting that these targets bolster confidence in “the company’s opportunity for GenAI to drive incremental growth.”
Both firms reaffirmed their Outperform/Overweight ratings, citing strong positioning and a clear path for sustained expansion.
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