Recent News
On March 31, 2026 Elastic announced Elastic Cloud Hosted achieved FedRAMP High authorization on AWS GovCloud, enabling federal workloads with Controlled Unclassified Information protections. On March 30, 2026 and late February the company issued multiple product security updates covering Elastic OTel Java, Kibana, and Elasticsearch to address several vulnerabilities. On March 9, 2026 several insiders executed stock sales totaling roughly $2.0 million, reported publicly in early March.
Technical Analysis
Directional indicators: ADX at 25.65 signals a strong trend environment. DI+ shows a dip-and-reversal while DI- shows a peak-and-reversal; both patterns indicate bullish directional shifts within a trend that currently favors one side of the market, heightening the significance of any subsequent directional move for near-term price bias.
MACD: MACD at -2.24 with a dip-and-reversal trend and the MACD line above its signal (-2.42) constitutes a bullish momentum shift; the crossover from below the signal line suggests momentum attempting to rebuild from recent weakness and may produce short covering or a bounce.
MRO: MRO at -31.07 indicates price sits materially below the model target, which tends to imply upside potential as price moves back toward target; however the MRO’s peak-and-reversal trend indicates the oscillator recently rolled over, cautioning that any rally could meet resistance before reaching fair-target levels.
RSI: RSI at 39.83 with a dip-and-reversal indicates the oscillator moved from lower readings and now shows early bullish recovery; the reading remains below neutral, so rallies may lack conviction until RSI trades back above ~50.
Moving averages & price structure: Price closed at $47.56, marginally below the 12-day EMA ($47.68) and below the 20-day average ($47.94), while the 50-day ($53.39) and 200-day ($74.23) averages sit well above the current price. The 12-day EMA shows a decreasing trend, signaling short-term downward pressure despite momentum attempts to reverse. Bollinger bands place the close between the 1x lower band ($45.31) and the mid/upper band, narrowing around the $47–$50 corridor and implying limited near-term volatility expansion unless a catalyst arrives.
Volume & volatility: Ten-day and longer-term volume averages sit above current session volume, suggesting limited conviction behind the latest intraday moves. Beta measures (42-day 0.73; 52-week 1.07) indicate below-market short-term sensitivity but near-market longer-term sensitivity, which supports tactical, range-based behavior rather than trending extremes.
Fundamental Analysis
Top-line and margins: Total revenue reached $449,881,000 with YoY revenue growth of 36.20% and QoQ growth of 215.97%, indicating strong top-line expansion. Gross margin at 76.34% remains healthy and rose modestly YoY. Operating margin registers thin at 0.136% and EBIT margin at 2.76%; EBIT margin improved QoQ by 53.82% but shows effectively flat YoY change (0.04%).
Earnings and cash flow: Reported EPS came in at $0.07 versus an estimate of -$0.09, an upside of $0.16 and an EPS surprise ratio of 177.8%. Net income totaled $7,753,000. Operating cash flow near $42,737,000 and free cash flow $41,801,000 produce a free cash flow yield around 0.58%. Cash and short-term investments total $1,248,046,000, supporting liquidity while cash conversion cycle days sit at ~33 days.
Balance sheet and leverage: Total debt equals $591,676,000 with debt-to-assets ~24.27% and debt-to-equity ~0.75. Debt-to-EBITDA reads 37.39, indicating leverage relative to current operating earnings. Interest coverage stands at 1.99x, below the industry peer mean of 8.02x, signaling more limited interest-bearing cushion compared with peers.
Returns and efficiency: Return on equity ~0.98% and return on assets ~0.315% run well below typical software peer averages; asset turnover sits at 0.183, above the industry peer mean (0.113), reflecting stronger revenue generation relative to asset base. Research & development investment remains substantial at $114,390,000.
Valuation: Market multiples show a high trailing PE around 994.45 (driven by small positive net income), forward PE ~106.16, price-to-sales ~16.12, and price-to-book ~9.17. The current valuation, as determined by WMDST, registers as over-valued given the combination of elevated multiples, thin operating margins, and leverage metrics relative to earnings power. Price targets exhibit dispersion (mean $37.86; low $25.86; high $78.08), confirming divergent analyst views and heightened valuation risk.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-01-31 |
| REPORT DATE: | 2026-02-26 |
| NEXT REPORT DATE: | 2026-05-28 |
| CASH FLOW | Begin Period Cash Flow | $ 804.1 M |
| Operating Cash Flow | $ 42.7 M | |
| Capital Expenditures | $ -936.00 K | |
| Change In Working Capital | $ -83.70 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -63.12 M | |
| End Period Cash Flow | $ 740.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 449.9 M | |
| Forward Revenue | $ 1.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 106.4 M | |
| Depreciation | $ 3.4 M | |
| Depreciation and Amortization | $ 3.4 M | |
| Research and Development | $ 114.4 M | |
| Total Operating Expenses | $ 449.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 343.4 M | |
| EBITDA | $ 15.8 M | |
| EBIT | $ 12.4 M | |
| Operating Income | $ 611.0 K | |
| Interest Income | — | |
| Interest Expense | $ 6.3 M | |
| Net Interest Income | $ -6.25 M | |
| Income Before Tax | $ 6.2 M | |
| Tax Provision | $ -1.59 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 7.8 M | |
| Net Income From Continuing Operations | $ 7.8 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.09 | |
| EPS Actual | $ 0.07 | |
| EPS Difference | $ 0.16 | |
| EPS Surprise | 177.778 % | |
| Forward EPS | $ 0.71 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.4 B | |
| Intangible Assets | $ 374.1 M | |
| Net Tangible Assets | $ 416.9 M | |
| Total Current Assets | $ 1.8 B | |
| Cash and Short-Term Investments | $ 1.2 B | |
| Cash | $ 737.2 M | |
| Net Receivables | $ 357.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 16.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 29.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 983.2 M | |
| Net Debt | — | |
| Total Debt | $ 591.7 M | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 791.0 M | |
| Retained Earnings | $ -1.17 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 7.59 | |
| Shares Outstanding | 104.148 M | |
| Revenue Per-Share | $ 4.32 | |
| VALUATION | Market Capitalization | $ 7.2 B |
| Enterprise Value | $ 6.6 B | |
| Enterprise Multiple | 416.628 | |
| Enterprise Multiple QoQ | -47.848 % | |
| Enterprise Multiple YoY | -47.921 % | |
| Enterprise Multiple IPRWA | ESTC: 416.628 high: 194.987 median: 75.766 mean: 69.152 low: -285.406 |
|
| EV/R | 14.656 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.083 | |
| Asset To Liability | 1.48 | |
| Debt To Capital | 0.428 | |
| Debt To Assets | 0.243 | |
| Debt To Assets QoQ | 1.732 % | |
| Debt To Assets YoY | -3.798 % | |
| Debt To Assets IPRWA | high: 0.624 mean: 0.318 ESTC: 0.243 median: 0.23 low: 0.005 |
|
| Debt To Equity | 0.748 | |
| Debt To Equity QoQ | 12.842 % | |
| Debt To Equity YoY | 9.34 % | |
| Debt To Equity IPRWA | high: 1.63 ESTC: 0.748 mean: 0.406 median: 0.29 low: -0.751 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.166 | |
| Price To Book QoQ | -11.113 % | |
| Price To Book YoY | -28.166 % | |
| Price To Book IPRWA | high: 25.147 median: 15.039 mean: 11.956 ESTC: 9.166 low: -15.249 |
|
| Price To Earnings (P/E) | 994.453 | |
| Price To Earnings QoQ | 632.955 % | |
| Price To Earnings YoY | 496.759 % | |
| Price To Earnings IPRWA | ESTC: 994.453 high: 392.443 mean: 125.534 median: 98.016 low: -13.79 |
|
| PE/G Ratio | -8.679 | |
| Price To Sales (P/S) | 16.115 | |
| Price To Sales QoQ | -25.73 % | |
| Price To Sales YoY | -43.829 % | |
| Price To Sales IPRWA | high: 85.311 mean: 34.817 median: 29.344 ESTC: 16.115 low: 3.403 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 106.156 | |
| Forward PE/G | -0.926 | |
| Forward P/S | 6.644 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.171 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.183 | |
| Asset Turnover Ratio QoQ | 8.089 % | |
| Asset Turnover Ratio YoY | 9.282 % | |
| Asset Turnover Ratio IPRWA | high: 0.364 ESTC: 0.183 mean: 0.113 median: 0.107 low: 0.05 |
|
| Receivables Turnover | 1.455 | |
| Receivables Turnover Ratio QoQ | -17.03 % | |
| Receivables Turnover Ratio YoY | 0.255 % | |
| Receivables Turnover Ratio IPRWA | high: 2.885 median: 1.705 mean: 1.636 ESTC: 1.455 low: 0.41 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 62.71 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.974 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 93.892 ESTC: 32.974 median: 26.156 mean: -16.766 low: -113.017 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.559 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.275 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.4 B | |
| Invested Capital | $ 1.4 B | |
| Net Tangible Assets | $ 416.9 M | |
| Net Working Capital | $ 804.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.269 | |
| Current Ratio | 1.818 | |
| Current Ratio QoQ | -7.675 % | |
| Current Ratio YoY | -10.139 % | |
| Current Ratio IPRWA | high: 4.653 ESTC: 1.818 mean: 1.369 median: 1.347 low: 0.47 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 37.386 | |
| Cost Of Debt | 0.635 % | |
| Interest Coverage Ratio | 1.986 | |
| Interest Coverage Ratio QoQ | 64.401 % | |
| Interest Coverage Ratio YoY | 21.921 % | |
| Interest Coverage Ratio IPRWA | high: 79.314 mean: 8.019 median: 4.742 ESTC: 1.986 low: -90.524 |
|
| Operating Cash Flow Ratio | -0.095 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 29.736 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.541 % | |
| Revenue Growth | 6.234 % | |
| Revenue Growth QoQ | 215.966 % | |
| Revenue Growth YoY | 36.203 % | |
| Revenue Growth IPRWA | high: 17.025 % median: 7.049 % mean: 6.5 % ESTC: 6.234 % low: -1.926 % |
|
| Earnings Growth | -114.583 % | |
| Earnings Growth QoQ | -1818.659 % | |
| Earnings Growth YoY | -1790.015 % | |
| Earnings Growth IPRWA | high: 516.667 % median: 10.182 % mean: 3.191 % low: -20.796 % ESTC: -114.583 % |
|
| MARGINS | ||
| Gross Margin | 76.341 % | |
| Gross Margin QoQ | 0.57 % | |
| Gross Margin YoY | 2.371 % | |
| Gross Margin IPRWA | high: 91.518 % ESTC: 76.341 % median: 73.593 % mean: 73.172 % low: 61.414 % |
|
| EBIT Margin | 2.761 % | |
| EBIT Margin QoQ | 53.816 % | |
| EBIT Margin YoY | 0.036 % | |
| EBIT Margin IPRWA | high: 38.84 % median: 21.164 % mean: 21.006 % ESTC: 2.761 % low: -23.351 % |
|
| Return On Sales (ROS) | 0.136 % | |
| Return On Sales QoQ | -106.992 % | |
| Return On Sales YoY | -95.072 % | |
| Return On Sales IPRWA | high: 37.793 % mean: 20.004 % median: 19.239 % ESTC: 0.136 % low: -24.779 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 41.8 M | |
| Free Cash Flow Yield | 0.577 % | |
| Free Cash Flow Yield QoQ | 103.887 % | |
| Free Cash Flow Yield YoY | -27.513 % | |
| Free Cash Flow Yield IPRWA | high: 6.043 % ESTC: 0.577 % median: 0.34 % mean: 0.13 % low: -3.007 % |
|
| Free Cash Growth | 60.73 % | |
| Free Cash Growth QoQ | -180.934 % | |
| Free Cash Growth YoY | -53.915 % | |
| Free Cash Growth IPRWA | high: 170.0 % ESTC: 60.73 % mean: 26.407 % median: 15.22 % low: -236.573 % |
|
| Free Cash To Net Income | 5.392 | |
| Cash Flow Margin | -20.731 % | |
| Cash Flow To Earnings | -12.029 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.315 % | |
| Return On Assets QoQ | -115.358 % | |
| Return On Assets YoY | -142.112 % | |
| Return On Assets IPRWA | high: 6.382 % mean: 1.712 % median: 1.653 % ESTC: 0.315 % low: -3.646 % |
|
| Return On Capital Employed (ROCE) | 0.853 % | |
| Return On Equity (ROE) | 0.01 | |
| Return On Equity QoQ | -117.029 % | |
| Return On Equity YoY | -149.37 % | |
| Return On Equity IPRWA | high: 0.165 mean: 0.059 median: 0.046 ESTC: 0.01 low: -0.185 |
|
| DuPont ROE | 0.922 % | |
| Return On Invested Capital (ROIC) | 0.547 % | |
| Return On Invested Capital QoQ | 33.09 % | |
| Return On Invested Capital YoY | -160.176 % | |
| Return On Invested Capital IPRWA | high: 14.663 % mean: 3.003 % median: 2.804 % ESTC: 0.547 % low: -4.279 % |
|