Elastic Q3 Revenue Hits $450M Up 18%, Raises Full-Year Guidance to $1.736B
Elastic reported Q3 total revenue of $450 million, up 18% year-over-year, and raised full-year fiscal 2026 revenue guidance to $1.734–1.736 billion and operating margin to about 16.3%. Current remaining performance obligations reached $1.06 billion, while AI-driven features drove over 470 customers with $100,000+ contracts and powered an 82% gross margin.
1. Strong Q3 Financial Results
Elastic delivered Q3 total revenue of $450 million, up 18% year-over-year, and sales-led subscription revenue of $376 million, up 21% in constant currency. Current remaining performance obligations rose 19% to $1.06 billion, and reported RPO increased 22%, supporting an 18.6% non-GAAP operating margin.
2. Raised Fiscal 2026 Guidance
Management increased full-year revenue guidance to $1.734–1.736 billion and sales-led subscription revenue guidance to $1.434–1.436 billion. Full-year non-GAAP operating margin outlook was raised to about 16.3% and diluted EPS guidance to $2.50–2.54.
3. AI Adoption and Customer Milestones
Elastic now supports over 2,700 Elastic Cloud vector database customers and more than 3,000 AI customers using Agent Builder and Attack Discovery. The company added over 470 customers with $100,000+ AI contracts, representing 28% of its high-value ACV cohort.
4. Product Enhancements and Performance
Elastic launched Agent Builder into general availability, expanded its Inference Service with multilingual re-ranking models, previewed Elastic Workflows, and introduced Cloud Connect for hybrid deployments. Innovations such as Better Binary Quantization, DiskBBQ and ACORN accelerated vector search up to eight times faster than alternative solutions.