Executive Summary

Q4 FY2025 delivered broad-based strength: revenue $388.43M (+16% YoY), Elastic Cloud $181.51M (+23% YoY), non-GAAP operating margin 15.3% and non-GAAP diluted EPS $0.47; management explicitly noted “we exceeded guidance across all revenue and profitability metrics” .
Results beat Wall Street consensus: revenue $388.43M vs $380.42M* and EPS $0.47 vs $0.37*; Q3 also beat (revenue $382.08M vs $368.88M*, EPS $0.63 vs $0.47*) and Q1 FY2026 beat (revenue $415.29M vs $397.33M*, EPS $0.60 vs $0.42*) . Consensus values marked with * are from S&P Global.
FY2026 guide initiated: Q1 FY2026 revenue $396–398M, non-GAAP op margin ~11.5%, EPS $0.41–$0.43; FY2026 revenue $1.655–$1.670B, non-GAAP op margin ~16%, EPS $2.24–$2.32 .
Strategic catalysts: five-year AWS SCA, NVIDIA collaboration, and acquisition of Keep to accelerate AI and security workflows; the company highlighted strong hyperscaler partnership momentum and AI differentiation (BBQ quantization, vector DB leadership) .

What Went Well and What Went Wrong

What Went Well

AI leadership and sales execution drove outperformance: “We exceeded guidance across all revenue and profitability metrics, demonstrating our leadership in Search AI” — CEO Ash Kulkarni .
Enterprise momentum: >1,510 customers with ACV >$100k (up from >1,460 in Q3); >210 customers over $1M ACV; strong expansion deals in observability and GenAI use cases .
Product innovation: BBQ quantization GA for more efficient vector DB; Serverless broadening GA regions; SIEM Attack Discovery improved efficacy; Google Vertex AI native grounding and AWS SCA deepening GTM .

What Went Wrong

U.S. public sector pressure: elongated sales cycles, especially federal civilian agencies, prompting conservative FY2026 guidance extrapolation .
Sequential consumption headwind in Q4 due to three fewer days in the quarter and leap-year compare; management cautioned on cloud seasonality patterns .
Monthly cloud (self-service SMB) remains flattish and expected roughly flat in FY2026, shifting focus to sales-led enterprise and high-potential mid-market metrics .

Financial Results

Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
Revenue ($USD Millions)	$365.36	$382.08	$388.43
Elastic Cloud Revenue ($USD Millions)	$168.84	$179.996	$181.507
Subscription Revenue ($USD Millions)	$340.81	$358.20	$361.74
Services Revenue ($USD Millions)	$24.55	$23.89	$26.69
GAAP Diluted EPS ($USD)	$(0.25)	$(0.16)	$(0.16)
Non-GAAP Diluted EPS ($USD)	$0.59	$0.63	$0.47
GAAP Operating Margin %	(1.2)%	(1.2)%	(3.1)%
Non-GAAP Operating Margin %	17.6%	16.8%	15.3%
GAAP Gross Margin %	74.5%	74.6%	74.8%
Non-GAAP Gross Margin %	76.9%	76.7%	77.0%
Operating Cash Flow ($USD Millions)	$38.38	$88.06	$86.98
Adjusted Free Cash Flow ($USD Millions)	$37.66	$99.15	$84.86

Segment revenue mix

Metric	Q2 FY2025	Q3 FY2025	Q4 FY2025
Elastic Cloud ($USD Millions, % of Total)	$168.84, 46%	$179.996, 47%	$181.507, 47%
Other Subscription ($USD Millions, % of Total)	$171.97, 47%	$178.20, 47%	$180.23, 46%
Services ($USD Millions, % of Total)	$24.55, 7%	$23.89, 6%	$26.69, 7%

KPIs

KPI	Q2 FY2025	Q3 FY2025	Q4 FY2025
Customers with ACV >$100k	>1,420	>1,460	>1,510
Total Subscription Customers	~21,300	~21,350	~21,500
Net Expansion Rate	~112%	~112%	~112%
Total Deferred Revenue ($USD Millions)	$645.71	$706.93	$852.46
Total RPO ($USD Millions)	$1,266.07	$1,354.35	$1,545.41
CRPO ($USD Billions)	—	—	~$1.0, +18% YoY

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	Q4 FY2025	$379–$381M	N/A	Outperformed (Actual $388.43M)
Non-GAAP Operating Margin	Q4 FY2025	~13.5%	N/A	Outperformed (15.3%)
Non-GAAP Diluted EPS	Q4 FY2025	$0.36–$0.37	N/A	Outperformed ($0.47)
Total Revenue	Q1 FY2026	N/A	$396–$398M	Initiated
Non-GAAP Operating Margin	Q1 FY2026	N/A	~11.5%	Initiated
Non-GAAP Diluted EPS	Q1 FY2026	N/A	$0.41–$0.43 (107.5–108.5M diluted shares)	Initiated
Total Revenue	FY2026	N/A	$1.655–$1.670B	Initiated
Non-GAAP Operating Margin	FY2026	N/A	~16%	Initiated
Non-GAAP Diluted EPS	FY2026	N/A	$2.24–$2.32 (109.0–111.0M diluted shares)	Initiated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
AI/Vector DB differentiation (BBQ, Rerank, embeddings)	BBQ introduced; Rerank tech preview; strong GenAI adoption counts	BBQ GA improvements; >2,000 cloud customers using GenAI; >310 ≥$100k; >25% of ≥$1M cohort using Elastic for GenAI	Improving
Hyperscaler partnerships	AWS Partner of the Year; Vertex AI integrations	AWS five-year SCA; Google AI Partner awards; Vertex AI native grounding	Improving
Serverless adoption	GA on AWS; TP on Azure; early momentum	GA footprint expanded; expected long-term revenue benefit	Improving
Public sector demand	Monitoring U.S. public sector; diversified strength elsewhere	U.S. federal civilian constraints; pipeline otherwise healthy; global public sector strong	Mixed
Observability/logsDB consolidation	Logsdb index mode driving wins/up-tier	Multi-year expansions; Frozen Tier, LogsDB, AI Assistant features cited	Improving
Security SIEM & AI Assistant	Attack Discovery interest/preview	Attack Discovery GA; improved efficacy; adding security sales overlays	Improving
Sales-led motion & metrics	Segmentation changes paying off; million-dollar cohort growing	New disclosure: subscription ex monthly cloud $315M (+19%); FY25 $1.195B (+20%)	Improving
Cloud seasonality	Anticipated moderation vs Q4 patterns	Fewer days headwind; emerging pattern of lower sequential growth in fiscal Q1	Stable pattern formation

Management Commentary

“We exceeded guidance across all revenue and profitability metrics, demonstrating our leadership in Search AI as customers continue to build Generative AI applications and consolidate onto our platform.” — CEO Ash Kulkarni .
“Subscription revenue excluding monthly cloud was $315 million, growing 19%… Our current remaining performance obligations… was approximately $1 billion and grew 18% year-over-year.” — CFO Navam Welihinda .
“We announced a new five-year strategic collaboration agreement with AWS… simplifying Elastic adoption on the AWS marketplace… and accelerate AI innovation.” — CEO Ash Kulkarni ; AWS SCA details .

Q&A Highlights

Guidance conservatism: CFO emphasized prudence given dynamic macro; extrapolated U.S. public sector constraints and potential consumption headwinds in Q2–Q4 FY2026 despite Q4 strength .
Cloud consumption dynamics: Three fewer days in fiscal Q4 created headwinds; normalizing days, cloud growth was mid-20s; emerging seasonality with lower sequential growth in fiscal Q1 .
Monthly cloud outlook: Expected roughly flat contribution in FY2026; focus on sales-led enterprise/commercial motion .
Security overlays and GTM: Adding security sales specialists to capture platform consolidation; validated FY2025 segmentation with strong million-dollar cohort adds .
AI/RAG durability and positioning: RAG viewed as durable; Elastic aiming to be the vector DB of choice; partnerships (AWS, Google) position Elastic at top of third-party services .

Estimates Context

How results compared to Wall Street consensus:

Metric	Q3 FY2025	Q4 FY2025	Q1 FY2026
Revenue Actual ($USD Millions)	$382.08	$388.43	$415.29
Revenue Consensus Mean ($USD Millions)	$368.88*	$380.42*	$397.33*
EPS Actual ($USD)	$0.63 (non-GAAP diluted)	$0.47 (non-GAAP diluted)	$0.60 (non-GAAP diluted)
EPS Consensus Mean ($USD)	$0.47*	$0.37*	$0.42*

Consensus values marked with * are from S&P Global.

Where estimates may need to adjust:

FY2026 revenue/EPS trajectory and Q1 margin (~11.5%) imply conservative top-line assumptions; if public sector headwinds don’t materialize broadly, upward revisions are plausible .
Cloud seasonality and day count effects should be reflected in intra-quarter models; management flagged patterns and emerging seasonality .

Key Takeaways for Investors

Elastic executed a clean beat-and-raise-style print for Q4 (beats vs consensus and vs prior guidance) while initiating prudent FY2026 guidance; AI leadership and enterprise expansion underpin visibility .
Watch subscription ex monthly cloud as the core sales-led KPI ($315M in Q4, +19% YoY) and CRPO (~$1B, +18% YoY) for near-term demand signals .
Partnerships are accelerating monetization paths: AWS five-year SCA, Vertex AI native grounding, and NVIDIA AI Factory collaborations expand distribution and performance advantages .
Serverless is a structural margin and adoption lever; expect gradual mix shift benefits and easier on-ramps for new logos and consolidations over time .
Public sector constraints drove guidance prudence; the diversified base (APJ/EMEA/Americas strength) and compelling cost-to-value could mitigate macro drag .
Security’s AI-driven features (Attack Discovery, AI Assistant) and SIEM migrations plus security sales overlays should support multi-product consolidation wins and up-tiering (Enterprise tier) .
Near-term trading: setup favors dips tied to conservative guide given multi-paths to top-end outcomes; medium-term thesis hinges on AI retrieval leadership, hyperscaler GTM, and enterprise consolidation monetization .

Additional relevant press releases (context/catalysts):

AWS five-year SCA (May 28, 2025) .
Collaboration with NVIDIA for recommended vector DB and GPU acceleration (May 19, 2025) .
Acquisition of Keep Alerting Ltd (May 21, 2025) to unify alerts and automate incident remediation .

S&P Global disclaimer: Consensus values in the Estimates Context section are retrieved from S&P Global.

Elastic N.V. (ESTC)·Q4 2025 Earnings Summary