Elastic Reports Q1 Fiscal 2027 Earnings with Strong Revenue Growth and AI Adoption
Elastic (ESTC) reported first-quarter fiscal year 2027 results showing robust revenue growth driven by strong performance in search, AI, and security solutions. Total revenue reached $478.1 million, up 15% year-over-year, with subscription revenue accounting for the majority at $448.7 million or 94%. The company highlighted a significant increase in sales-led subscriptions to $398.5 million, reflecting an 18% annual growth rate. Elastic also noted continued customer commitments through its Current Remaining Performance Obligations (CRPO) of $1.153 billion and total RPO of $1.854 billion, both up significantly year-over-year. The company's AI adoption is accelerating, with 37% of high-value customers now using AI features—up from 21% a year ago. Elastic also repurchased shares in Q1 for $40 million and provided updated fiscal guidance. Management attributed the strong performance to disciplined expense management and operating leverage as revenue scales. The company expects continued growth, with full-year revenue projected between $1.998 billion and $2.010 billion.
Tickers: $ESTC
Topics: customer_acquisition free_cash_flow revenue subscription_growth