Recent News
On July 30, 2026, Elastic announced an expanded collaboration with OpenAI to connect large language models to enterprise data for enhanced search and retrieval functionality.
On July 31, 2026, Elastic released security platform updates focused on AI triage and endpoint tooling designed to streamline detection and investigation workflows.
On August 13, 2026, Oppenheimer raised its price target for Elastic in an analyst note highlighting improved go-to-market traction.
On July 22, 2026, Morgan Stanley published a downgrade for Elastic while noting sector re-rating dynamics.
On August 27, 2026, Elastic posted proxy materials for its 2026 Annual General Meeting and related governance filings.
Technical Analysis
ADX at 31.37 signals a strong directional trend; DI+ (34.01) exceeds DI- (19.71), so directional bias remains bullish, but DI+ is decreasing, indicating the bullish directional momentum has begun to weaken while DI- has completed a peak-and-reversal and moved lower.
MACD sits at 2.63 below the signal line at 3.40 with a decreasing MACD trend, reflecting waning bullish momentum and the absence of a bullish MACD cross.
MRO at 16.13 reads positive, implying price sits above the model target and faces a likely corrective move toward target levels if momentum fails to re-accelerate.
RSI at 60.01 with a decreasing trend shows momentum rolling off from neutral-to-leaning bullish territory, consistent with a consolidation or mild pullback risk in the near term.
Price structure remains above key moving averages: last close $89.22 exceeds the 200-day average $64.47 and the 50-day average $77.89, while the 12-day EMA registered a dip & reversal. Price trades below the 1x Bollinger upper band ($91.73) and beneath the super trend upper band ($94.30), indicating room to the upside but contingent on momentum re-acceleration.
Fundamental Analysis
Total revenue reached $478,113,000 for the period ending July 31, 2026, with QoQ revenue growth of 33.20% and year-over-year revenue change of -11.96%—QoQ acceleration reflects seasonality and product traction, while YoY compares to a tougher prior period.
EPS came in at $0.70 versus an estimate of $0.58, producing an EPS surprise of 20.69% and an EPS beat magnitude of $0.12, which supports improved near-term profitability expectations.
Gross margin registered 74.50%, above the industry peer mean of 68.88% and the industry peer median of 67.57%, signaling strong unit economics in core search and data products.
Operating and EBIT metrics remained negative: operating margin -0.76% and EBIT margin -2.30%. The EBIT margin sits well below the industry peer mean of 16.83% and the industry peer median of 14.34%, though it stands above the industry peer low of -12.04%, indicating progress on cost structure but continued gap to peer profitability norms.
Balance sheet and cash flow show strength: cash and short-term investments $1,461,042,000 and operating cash flow $132,004,000 with free cash flow $131,414,000 and a free cash flow yield of 1.83% (free cash flow yield improved YoY). The current ratio at 1.81 exceeds the industry peer mean of 1.19, supporting liquidity for continued product investment or opportunistic capital allocation.
Leverage remains moderate: total debt $595,775,000, debt-to-assets 19.85% below the industry peer mean of 27.85%, and debt-to-equity 0.46, keeping interest burden manageable given a cost of debt near 1.03% and an interest coverage ratio still negative due to GAAP losses.
Valuation metrics show a high trailing P/E of 97.41x and P/B at 5.53x against an industry peer mean P/B of 8.05x; forward P/E stands at 59.82x with a PEG near 6.60 reflecting elevated expectations for future earnings growth. WMDST values the stock as under-valued based on the combination of strong margins, improving cash conversion, and the balance sheet cushion relative to current operating profitability.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-07-31 |
| REPORT DATE: | 2026-08-27 |
| NEXT REPORT DATE: | 2026-11-26 |
| CASH FLOW | Begin Period Cash Flow | $ 770.5 M |
| Operating Cash Flow | $ 132.0 M | |
| Capital Expenditures | $ -590.00 K | |
| Change In Working Capital | $ 34.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 111.3 M | |
| End Period Cash Flow | $ 881.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 478.1 M | |
| Forward Revenue | $ -742.65 M | |
| COSTS | ||
| Cost Of Revenue | $ 121.9 M | |
| Depreciation | $ 3.4 M | |
| Depreciation and Amortization | $ 3.4 M | |
| Research and Development | $ 112.5 M | |
| Total Operating Expenses | $ 481.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 356.2 M | |
| EBITDA | $ -7.62 M | |
| EBIT | $ -10.98 M | |
| Operating Income | $ -3.65 M | |
| Interest Income | — | |
| Interest Expense | $ 6.3 M | |
| Net Interest Income | $ -6.28 M | |
| Income Before Tax | $ -17.26 M | |
| Tax Provision | $ -529.00 K | |
| Tax Rate | 3.0 % | |
| Net Income | $ -16.73 M | |
| Net Income From Continuing Operations | $ -16.73 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.58 | |
| EPS Actual | $ 0.70 | |
| EPS Difference | $ 0.12 | |
| EPS Surprise | 20.69 % | |
| Forward EPS | $ 0.99 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.0 B | |
| Intangible Assets | $ 367.0 M | |
| Net Tangible Assets | $ 929.8 M | |
| Total Current Assets | $ 1.9 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 879.9 M | |
| Net Receivables | $ 236.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 13.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 14.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.0 B | |
| Net Debt | — | |
| Total Debt | $ 595.8 M | |
| Total Liabilities | $ 1.7 B | |
| EQUITY | ||
| Total Equity | $ 1.3 B | |
| Retained Earnings | $ -748.68 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 12.34 | |
| Shares Outstanding | 105.121 M | |
| Revenue Per-Share | $ 4.55 | |
| VALUATION | Market Capitalization | $ 7.2 B |
| Enterprise Value | $ 6.3 B | |
| Enterprise Multiple | -827.254 | |
| Enterprise Multiple QoQ | -94.774 % | |
| Enterprise Multiple YoY | -190.533 % | |
| Enterprise Multiple IPRWA | high: 489.121 mean: 83.771 median: 55.53 low: -234.197 ESTC: -827.254 |
|
| EV/R | 13.183 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.315 | |
| Asset To Liability | 1.761 | |
| Debt To Capital | 0.315 | |
| Debt To Assets | 0.198 | |
| Debt To Assets QoQ | 5.772 % | |
| Debt To Assets YoY | -15.692 % | |
| Debt To Assets IPRWA | high: 0.839 median: 0.318 mean: 0.278 ESTC: 0.198 low: 0.004 |
|
| Debt To Equity | 0.459 | |
| Debt To Equity QoQ | -0.87 % | |
| Debt To Equity YoY | -24.897 % | |
| Debt To Equity IPRWA | high: 2.522 mean: 1.171 median: 1.088 ESTC: 0.459 low: -1.496 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.527 | |
| Price To Book QoQ | 26.559 % | |
| Price To Book YoY | -39.068 % | |
| Price To Book IPRWA | high: 21.929 mean: 8.051 median: 7.413 ESTC: 5.527 low: -11.599 |
|
| Price To Earnings (P/E) | 97.413 | |
| Price To Earnings QoQ | 11.652 % | |
| Price To Earnings YoY | -29.377 % | |
| Price To Earnings IPRWA | high: 321.088 mean: 138.435 ESTC: 97.413 median: 74.215 low: -48.795 |
|
| PE/G Ratio | 6.603 | |
| Price To Sales (P/S) | 14.993 | |
| Price To Sales QoQ | 21.199 % | |
| Price To Sales YoY | -29.34 % | |
| Price To Sales IPRWA | high: 78.276 mean: 38.476 median: 23.689 ESTC: 14.993 low: 2.257 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 59.821 | |
| Forward PE/G | 4.055 | |
| Forward P/S | -9.708 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 34.804 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.155 | |
| Asset Turnover Ratio QoQ | -3.623 % | |
| Asset Turnover Ratio YoY | -4.282 % | |
| Asset Turnover Ratio IPRWA | high: 0.227 ESTC: 0.155 mean: 0.103 median: 0.072 low: 0.062 |
|
| Receivables Turnover | 1.364 | |
| Receivables Turnover Ratio QoQ | 24.397 % | |
| Receivables Turnover Ratio YoY | -1.832 % | |
| Receivables Turnover Ratio IPRWA | high: 3.24 median: 1.776 mean: 1.734 ESTC: 1.364 low: 0.537 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 66.88 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 57.512 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 85.679 ESTC: 57.512 median: 45.846 mean: 45.198 low: 12.387 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.569 | |
| CapEx To Revenue | -0.001 | |
| CapEx To Depreciation | -0.176 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.9 B | |
| Net Invested Capital | $ 1.9 B | |
| Invested Capital | $ 1.9 B | |
| Net Tangible Assets | $ 929.8 M | |
| Net Working Capital | $ 840.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.409 | |
| Current Ratio | 1.81 | |
| Current Ratio QoQ | 7.81 % | |
| Current Ratio YoY | -13.18 % | |
| Current Ratio IPRWA | high: 3.826 ESTC: 1.81 mean: 1.191 median: 1.171 low: 0.282 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -78.196 | |
| Cost Of Debt | 1.026 % | |
| Interest Coverage Ratio | -1.748 | |
| Interest Coverage Ratio QoQ | 210.059 % | |
| Interest Coverage Ratio YoY | -275.014 % | |
| Interest Coverage Ratio IPRWA | high: 227.849 median: 4.926 mean: 0.371 ESTC: -1.748 low: -238.9 |
|
| Operating Cash Flow Ratio | 0.212 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 9.368 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.783 % | |
| Revenue Growth | 6.087 % | |
| Revenue Growth QoQ | 3319.663 % | |
| Revenue Growth YoY | -11.961 % | |
| Revenue Growth IPRWA | high: 13.591 % ESTC: 6.087 % mean: 5.755 % median: 5.61 % low: -3.3 % |
|
| Earnings Growth | 14.754 % | |
| Earnings Growth QoQ | -98.087 % | |
| Earnings Growth YoY | -46.659 % | |
| Earnings Growth IPRWA | high: 90.0 % mean: 15.149 % ESTC: 14.754 % median: 10.368 % low: -39.394 % |
|
| MARGINS | ||
| Gross Margin | 74.499 % | |
| Gross Margin QoQ | -1.139 % | |
| Gross Margin YoY | -2.875 % | |
| Gross Margin IPRWA | high: 91.398 % ESTC: 74.499 % mean: 68.878 % median: 67.566 % low: 60.026 % |
|
| EBIT Margin | -2.296 % | |
| EBIT Margin QoQ | 193.982 % | |
| EBIT Margin YoY | -250.36 % | |
| EBIT Margin IPRWA | high: 44.293 % mean: 16.828 % median: 14.336 % ESTC: -2.296 % low: -12.038 % |
|
| Return On Sales (ROS) | -0.764 % | |
| Return On Sales QoQ | -79.017 % | |
| Return On Sales YoY | -66.388 % | |
| Return On Sales IPRWA | high: 35.265 % mean: 15.611 % median: 15.159 % ESTC: -0.764 % low: -17.001 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 131.4 M | |
| Free Cash Flow Yield | 1.833 % | |
| Free Cash Flow Yield QoQ | -31.783 % | |
| Free Cash Flow Yield YoY | 55.076 % | |
| Free Cash Flow Yield IPRWA | high: 4.032 % ESTC: 1.833 % median: 0.198 % mean: -0.019 % low: -1.177 % |
|
| Free Cash Growth | -12.282 % | |
| Free Cash Growth QoQ | -104.753 % | |
| Free Cash Growth YoY | -153.956 % | |
| Free Cash Growth IPRWA | high: 188.094 % median: 59.137 % mean: 54.437 % ESTC: -12.282 % low: -103.769 % |
|
| Free Cash To Net Income | -7.855 | |
| Cash Flow Margin | 46.051 % | |
| Cash Flow To Earnings | -13.161 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.544 % | |
| Return On Assets QoQ | -103.489 % | |
| Return On Assets YoY | -43.451 % | |
| Return On Assets IPRWA | high: 3.949 % median: 1.685 % mean: 0.888 % ESTC: -0.544 % low: -5.177 % |
|
| Return On Capital Employed (ROCE) | -0.559 % | |
| Return On Equity (ROE) | -0.013 | |
| Return On Equity QoQ | -103.778 % | |
| Return On Equity YoY | -49.072 % | |
| Return On Equity IPRWA | high: 0.145 median: 0.077 mean: 0.037 ESTC: -0.013 low: -0.134 |
|
| DuPont ROE | -1.3 % | |
| Return On Invested Capital (ROIC) | -0.57 % | |
| Return On Invested Capital QoQ | 400.0 % | |
| Return On Invested Capital YoY | -275.385 % | |
| Return On Invested Capital IPRWA | high: 7.231 % median: 2.149 % mean: 1.768 % ESTC: -0.57 % low: -2.52 % |
|