Elastic reports Q1 revenue growth driven by AI and search demand

Elastic reported fiscal first-quarter 2027 revenue of $478 million, a 15% increase from the previous year, exceeding Wall Street forecasts. The company's stock rose more than 19% in extended trading following the results.

Key financial metrics included sales-led subscription revenue of $399 million, up 18%, and a non-GAAP operating margin of 16.2%. While the company reported a net loss of $16.7 million, this was an improvement over the $24.6 million loss recorded in the same quarter last year. Earnings per share before certain costs reached 70 cents, surpassing the 58-cent analyst consensus.

CEO Ash Kulkarni attributed the growth to strong demand in search, AI, security, and observability offerings. The company is increasingly positioning its Elasticsearch platform to provide real-time data for large language models. Elastic also reported significant growth in its large-customer cohort, ending the quarter with over 1,800 customers having an annual contract value of at least $100,000.