SAN FRANCISCO, August 28, 2026, 08:03 (EDT)
- Elastic’s stock climbed 17.4% to reach $98.28 during premarket trading on Friday.
- Revenue for the quarter rose 15%, and current RPO climbed 21%.
- Adjusted profit and projected revenue for the upcoming quarter topped forecasts.
Shares of Elastic N.V. rose 17.4% in premarket trade after the company reported its contract backlog expanding more quickly than revenue. The stock climbed to $98.28 at 08:03 EDT, up from $83.74 at Thursday’s close, with around 100,000 shares traded ahead of the open premarket data.
The response increased Elastic’s implied equity value by about $1.5 billion. It also redirected focus away from quarterly sales and towards future revenue predictability.
Elastic N.V. (NYSE: ESTC) posted fiscal first-quarter revenue of $478 million, up 15% from a year earlier company release.
Remaining performance obligations now stand at $1.153 billion, marking a 21% increase. Total RPO rose 27% to $1.854 billion. These metrics exceeded the growth of recognized revenue.
| Fiscal Q1 metric | Result | Year-over-year change |
|---|---|---|
| Revenue | $478 million | 15% |
| Subscription revenue | $449 million | 15% |
| Sales-led subscription revenue | $399 million | 18% |
| Current RPO | $1.153 billion | 21% |
| Total RPO | $1.854 billion | 27% |
| Non-GAAP operating income | $77 million | 16.2% margin |
The gap is significant as RPO reflects revenue from contracts that has not yet been recognized. A rising backlog can help drive future sales, but actual timing depends on factors such as customer implementation and the specifics of contract agreements.
Adjusted earnings reached $0.70 per share, topping the consensus forecast of $0.58. Revenue likewise surpassed FactSet’s cited estimate of $470 million analyst estimates.
Management projected second-quarter revenue at approximately $486.5 million at the midpoint, above Wall Street’s estimate of around $483 million.
Elastic reported 1,800 customers with annual contract values exceeding $100,000 at the end of the quarter, marking a 16% increase from 1,550 customers in the same period last year.
Profit performance was uneven. The company reported non-GAAP operating income of $77 million, while recording a GAAP operating loss of $24 million.
The focus of the earnings quality test shifts to conversion. Investors are looking to see if current-RPO growth of 21% will translate into ongoing revenue gains while maintaining margins.
Risks: The premarket surge heightens the focus on delivery. Challenges such as cloud competition, expenses for AI infrastructure, and delays in turning contracts into revenue may reduce the valuation cushion offered by the backlog.
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