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On March 23, 2026 Elastic announced Elastic Workflows, a native automation capability built into Elastic Security. On April 21, 2026 Elastic introduced MCP Apps for Elastic, embedding first-of-their-kind agent-native UI experiences for observability and security inside third-party coding tools and chat clients. On April 23, 2026 Elastic announced Jina Embeddings v3 availability as a self-deployable partner model in a major enterprise agent platform.
Technical Analysis
Directional indicators show mixed structure: ADX at 16.39 indicates no established trend, while DI+ at 29.52 (dip & reversal) and DI– at 21.56 (peak & reversal) both align with bullish directional shifts; the net reads as short-term bullish pressure without a confirmed trend.
MACD sits positive at 0.51 with a MACD signal of -0.10 and a MACD_trend of dip & reversal; MACD currently trading above its signal line signals renewing bullish momentum that supports a near-term upward bias.
MRO registers -13.05 with a peak & reversal pattern; the negative MRO indicates the price sits below the modeled target and therefore contains potential upside pressure against the current valuation backdrop.
RSI at 47.83, increasing, places momentum near neutral but tipping upward, consistent with a re-acceleration in short-term buying interest rather than an overbought condition.
Price action shows short-term strength: close at $53.72 trades above the 20-day average ($50.42) and the 50-day average ($49.83) while remaining below the 200-day average ($70.19); the 12-day EMA exhibits a dip & reversal. Price sits between the Bollinger upper 1x dev ($52.68) and upper 2x dev ($54.94), indicating above-average short-term volatility and proximity to the upper volatility band.
Volume around 2.02M slightly exceeds short- and long-run averages, supporting the recent directional moves; low ADX and mixed breadth imply momentum may remain fragile until trend-read ADX rises.
Fundamental Analysis
Revenue growth shows pronounced expansion: revenue growth year‑over‑year equals 36.20%, with the reported quarter-over-quarter growth figure at 215.97%. Gross margin remains robust at 76.34%, improving modestly year-over-year.
Profitability metrics remain pressed: EBIT margin stands at 2.76%, a 53.82% increase quarter-over-quarter but effectively flat year-over-year (0.04% change). EBIT margin at 2.76% sits well below the industry peer mean of 38.92% and the industry peer median of 48.40%, indicating operating margin compression relative to peers.
Earnings per share outperformed expectations in the most recent report: EPS actual $0.73 versus estimate $0.65, an EPS surprise of 12.31%.
Cash and liquidity show scale but mixed conversion: cash and short-term investments total $1,248,046,000 while operating cash flow tallied $42,737,000 and free cash flow reached $41,801,000; free cash flow yield equals 0.58%. Cash flow margin registers -20.73%, and cash conversion cycle measures 32.97 days, reflecting working-capital swings that compress near-term cash conversion despite ample liquidity on the balance sheet.
Leverage and coverage reveal elevated structural risk: total debt $591,676,000 and debt-to-EBITDA at 37.39x with interest coverage roughly 1.99x, indicating limited buffer if operating results weaken. Debt-to-equity equals 0.75x while the current ratio reads 1.82x.
Capital-market multiples look stretched: trailing P/E around 994x, forward P/E ~106x, price-to-sales 16.12x and price-to-book 9.17x (the P/B sits above the industry peer mean of 8.48). Enterprise multiples also appear elevated. Given these metrics and cash-flow dynamics, the current valuation carries a premium relative to fundamentals; WMDST values the stock as over‑valued.
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 | $ 0.65 | |
| EPS Actual | $ 0.73 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 12.308 % | |
| 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 | high: 455.999 ESTC: 416.628 mean: 91.511 median: 60.198 low: -324.707 |
|
| 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: 0.882 ESTC: 0.243 mean: 0.157 median: 0.082 low: 0.002 |
|
| Debt To Equity | 0.748 | |
| Debt To Equity QoQ | 12.842 % | |
| Debt To Equity YoY | 9.34 % | |
| Debt To Equity IPRWA | high: 2.247 ESTC: 0.748 mean: 0.25 median: 0.137 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 ESTC: 9.166 mean: 8.484 median: 7.357 low: -13.386 |
|
| 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: 104.456 median: 93.295 low: -222.082 |
|
| 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 median: 36.777 mean: 36.679 ESTC: 16.115 low: 0.499 |
|
| 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: 0.413 ESTC: 0.183 mean: 0.128 median: 0.122 low: 0.0 |
|
| Receivables Turnover | 1.455 | |
| Receivables Turnover Ratio QoQ | -17.03 % | |
| Receivables Turnover Ratio YoY | 0.255 % | |
| Receivables Turnover Ratio IPRWA | high: 3.439 mean: 1.468 ESTC: 1.455 median: 1.422 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: 210.235 ESTC: 32.974 mean: -32.814 median: -63.272 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: 6.907 ESTC: 1.818 mean: 1.774 median: 1.283 low: 0.124 |
|
| 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: 174.292 median: 51.566 mean: 35.336 ESTC: 1.986 low: -144.283 |
|
| 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: 20.703 % ESTC: 6.234 % mean: 4.134 % median: 1.985 % low: -19.732 % |
|
| Earnings Growth | -114.583 % | |
| Earnings Growth QoQ | -1818.659 % | |
| Earnings Growth YoY | -1790.015 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 5.442 % median: 1.695 % ESTC: -114.583 % low: -160.0 % |
|
| MARGINS | ||
| Gross Margin | 76.341 % | |
| Gross Margin QoQ | 0.57 % | |
| Gross Margin YoY | 2.371 % | |
| Gross Margin IPRWA | high: 91.518 % ESTC: 76.341 % mean: 71.744 % median: 67.633 % low: 30.813 % |
|
| EBIT Margin | 2.761 % | |
| EBIT Margin QoQ | 53.816 % | |
| EBIT Margin YoY | 0.036 % | |
| EBIT Margin IPRWA | high: 98.427 % median: 48.401 % mean: 38.916 % ESTC: 2.761 % low: -107.797 % |
|
| Return On Sales (ROS) | 0.136 % | |
| Return On Sales QoQ | -106.992 % | |
| Return On Sales YoY | -95.072 % | |
| Return On Sales IPRWA | high: 78.153 % median: 46.326 % mean: 37.174 % ESTC: 0.136 % low: -107.797 % |
|
| 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: 6.823 % ESTC: 0.577 % median: 0.518 % mean: 0.507 % low: -7.9 % |
|
| Free Cash Growth | 60.73 % | |
| Free Cash Growth QoQ | -180.934 % | |
| Free Cash Growth YoY | -53.915 % | |
| Free Cash Growth IPRWA | high: 233.063 % median: 168.667 % mean: 108.557 % ESTC: 60.73 % low: -262.02 % |
|
| 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: 9.116 % median: 4.675 % mean: 3.872 % ESTC: 0.315 % low: -12.237 % |
|
| 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: 0.192 median: 0.077 mean: 0.063 ESTC: 0.01 low: -0.342 |
|
| 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: 21.245 % median: 7.128 % mean: 6.172 % ESTC: 0.547 % low: -11.709 % |
|