Elastic Reports Strong Q1 Fiscal 2027 Results with Revenue Growth and AI Adoption
Elastic (NYSE:ESTC) reported strong first-quarter fiscal 2027 results, driven by robust revenue growth and increased adoption of its AI features. The company recorded $478 million in revenue for the quarter, a 15% year-over-year increase, with sales-led subscription revenue rising to $399 million (+18%). Non-GAAP operating margin reached 16.2%, surpassing guidance. Elastic added over 80 new customers with annual contract values above $100,000, bringing the total number of such large customers to more than 1,800. AI adoption among these clients grew significantly from 21% a year ago to 37%, indicating strong demand for Elastic's data and search capabilities in AI applications. The company raised its full-year fiscal 2027 revenue guidance to between $1.998 billion and $2.010 billion, with an expected non-GAAP operating margin of approximately 19.4%. Additionally, Elastic repurchased about $40 million worth of shares during the quarter as part of a broader buyback program.
Tickers: $ESTC
Topics: AI Adoption Buybacks Earnings Revenue Growth Subscription Revenue