Elastic Q4 Revenue Beats at $449.9M, EPS $0.73, Shares Drop 12%
Elastic posted Q4 CY2025 revenue of $449.9 million, up 17.7% year-on-year and 2.6% above the $438.4 million consensus, with non-GAAP EPS of $0.73, 13% above estimates. Management guided Q1 revenue to $446 million at the midpoint, topping forecasts by 0.8%, and lifted full-year EPS guidance to $2.52.
1. Q4 CY2025 Financial Results
Elastic delivered Q4 CY2025 revenue of $449.9 million, representing 17.7% year-on-year growth and a 2.6% beat over the $438.4 million estimate. Adjusted operating income reached $83.5 million, reflecting an 18.6% margin, while non-GAAP EPS of $0.73 exceeded the $0.65 consensus by 13%.
2. Forward Guidance and Outlook
For Q1 CY2026, management set revenue guidance at $446 million at the midpoint, 0.8% above analysts’ $442.4 million forecast, and projected 15% constant-currency subscription revenue growth. The company also raised its full-year adjusted EPS guidance to $2.52 at midpoint, up 3.7% from prior expectations.
3. Market Reaction and Investor Sentiment
Despite the beat on both top- and bottom-line metrics, shares fell 12.1% as investors appeared to have anticipated stronger guidance or faster billings growth. The pullback underscores concerns over decelerating subscription billings and shorter-term demand trends despite solid long-term retention metrics.