Revenue growth has moderated to 16.0% in 2026Q4, while operating margins remain inconsistent, oscillating between -13.6% and 0.1% due to elevated R&D and SG&A expenses.
| Sales/Revenue | 1.74B | 1.48B | 1.27B | 1.07B | 862.37M | 608.49M | 427.62M | 271.65M | 159.94M | 88.18M |
| Revenue Growth % | 17.26% | 17.04% | 18.55% | 23.96% | 41.72% | 42.3% | 57.41% | 69.85% | 81.38% | - |
| Cost of Goods Sold | 416.27M | 379.87M | 330.08M | 296.63M | 232.19M | 161.05M | 122.69M | 78.01M | 40.74M | 19.84M |
| COGS % of Revenue | 23.93% | 25.61% | 26.05% | 27.75% | 26.92% | 26.47% | 28.69% | 28.72% | 25.47% | 22.51% |
| Gross Profit | 1.32B | 1.1B | 937.24M | 772.36M | 630.18M | 447.44M | 304.93M | 193.64M | 119.19M | 68.33M |
| Gross Margin % | 76.07% | 74.39% | 73.95% | 72.25% | 73.08% | 73.53% | 71.31% | 71.28% | 74.53% | 77.49% |
| Gross Profit Growth % | 19.91% | 17.73% | 21.35% | 22.56% | 40.84% | 46.73% | 57.47% | 62.46% | 74.44% | - |
| Operating Expenses | 1.36B | 1.16B | 1.07B | 991.53M | 803.86M | 576.91M | 476.04M | 295M | 167.19M | 115.5M |
| OpEx % of Revenue | 77.99% | 78.09% | 84.2% | 92.75% | 93.21% | 94.81% | 111.32% | 108.59% | 104.54% | 130.99% |
| Selling, General & Admin | 904.61M | 792.36M | 720.28M | 646.78M | 530.1M | 377.71M | 310.67M | 193.83M | 111.55M | 82.9M |
| SG&A % of Revenue | 52.01% | 53.42% | 56.83% | 60.5% | 61.47% | 62.07% | 72.65% | 71.35% | 69.75% | 94.02% |
| Research & Development | 451.93M | 365.76M | 341.95M | 313.45M | 273.76M | 199.2M | 165.37M | 101.17M | 55.64M | 32.6M |
| R&D % of Revenue | 25.98% | 24.66% | 26.98% | 29.32% | 31.75% | 32.74% | 38.67% | 37.24% | 34.79% | 36.97% |
| Other Operating Expenses | 0 | 225K | 4.92M | 31.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -33.48M | -54.92M | -129.9M | -219.17M | -173.68M | -129.48M | -171.1M | -101.36M | -47.99M | -47.17M |
| Operating Margin % | -1.92% | -3.7% | -10.25% | -20.5% | -20.14% | -21.28% | -40.01% | -37.31% | -30.01% | -53.5% |
| Operating Income Growth % | 39.05% | 57.72% | 40.73% | -26.19% | -34.14% | 24.33% | -68.82% | -111.18% | -1.74% | - |
| EBITDA | -21.64M | -42.61M | -111.9M | -198.94M | -153.95M | -112.24M | -158.25M | -95.66M | -42.93M | -44.02M |
| EBITDA Margin % | -1.24% | -2.87% | -8.83% | -18.61% | -17.85% | -18.45% | -37.01% | -35.21% | -26.84% | -49.92% |
| EBITDA Growth % | 49.21% | 61.93% | 43.75% | -29.22% | -37.16% | 29.07% | -65.42% | -122.84% | 2.49% | - |
| D&A (Non-Cash Add-back) | 11.83M | 12.31M | 18M | 20.23M | 19.73M | 17.24M | 12.86M | 5.7M | 5.07M | 3.15M |
| EBIT | -33.48M | -6.26M | -96.62M | -191.72M | -177.07M | -121.53M | -169.14M | -101.36M | -47.99M | -47.17M |
| Net Interest Income | -25.14M | -25.31M | -26.13M | -25.16M | -20.72M | -185K | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 25.14M | 25.31M | 26.13M | 25.16M | 20.72M | 185K | 0 | 0 | 0 | 0 |
| Other Income/Expense | 31.18M | 23.35M | 7.15M | 2.29M | -24.11M | 7.76M | 1.96M | 3.44M | -1.36M | -583K |
| Pretax Income | -2.3M | -31.57M | -122.76M | -216.88M | -197.79M | -121.71M | -169.14M | -97.92M | -49.35M | -47.76M |
| Pretax Margin % | -0.13% | -2.13% | -9.69% | -20.29% | -22.94% | -20% | -39.55% | -36.04% | -30.86% | -54.16% |
| Income Tax | -370.07M | 76.55M | -184.48M | 19.28M | 6.06M | 7.72M | -1.97M | 4.39M | 3.38M | 4.21M |
| Effective Tax Rate % | 16082.88% | -242.47% | 150.28% | -8.89% | -3.06% | -6.34% | 1.16% | -4.48% | -6.84% | -8.82% |
| Net Income | 367.77M | -108.11M | 61.72M | -236.16M | -203.85M | -129.43M | -167.17M | -102.3M | -52.73M | -51.97M |
| Net Margin % | 21.14% | -7.29% | 4.87% | -22.09% | -23.64% | -21.27% | -39.09% | -37.66% | -32.97% | -58.94% |
| Net Income Growth % | 440.17% | -275.17% | 126.13% | -15.85% | -57.49% | 22.58% | -63.41% | -94.02% | -1.46% | - |
| Net Income (Continuing) | 367.77M | -108.11M | 61.72M | -236.16M | -203.85M | -129.43M | -167.17M | -102.3M | -52.73M | -51.97M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.43 | -1.04 | 0.59 | -2.47 | -2.20 | -1.48 | -2.12 | -1.86 | -0.85 | -0.84 |
| EPS Growth % | 429.81% | -276.27% | 123.89% | -12.27% | -48.65% | 30.19% | -13.98% | -118.82% | -1.19% | - |
| EPS (Basic) | 3.49 | -1.04 | 0.62 | -2.47 | -2.20 | -1.48 | -2.12 | -1.86 | -0.85 | -0.84 |
| Diluted Shares Outstanding | 107.22M | 103.66M | 103.98M | 95.73M | 92.55M | 87.21M | 78.8M | 54.89M | 61.92M | 61.92M |
| Basic Shares Outstanding | 105.34M | 103.66M | 99.65M | 95.73M | 92.55M | 87.21M | 78.8M | 54.89M | 61.92M | 61.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Cloud consumption volatility
As indicated by the most recent quarterly filings, Elastic's year-over-year revenue growth has decelerated from 19.7% in 2024Q4 to 16.0% in 2026Q4, reflecting the challenges of maintaining high-velocity expansion as the company's total revenue base approaches the $450 million quarterly threshold in a competitive observability market.
The consistent decline in growth rates suggests that the company is encountering increased friction in its enterprise sales cycles. Investors should monitor whether the shift toward consumption-based billing is creating a structural headwind that masks underlying demand or if the platform is facing genuine saturation in its core search and logging use cases.
According to historical income statements, Elastic has maintained a relatively stable gross margin profile, hovering between 73.6% and 76.7% over the last ten quarters, which highlights the structural cost of third-party cloud hosting required to support its Elastic Cloud SaaS offering.
While these margins are respectable for a software-as-a-service provider, they remain below the 80% threshold often seen in pure-play cloud-native peers. This suggests that the company's profitability is tethered to its ability to optimize cloud infrastructure spend, which may limit the potential for significant margin expansion in the near term.
Based on reported financial data, Elastic has struggled to achieve consistent operating leverage, with operating margins fluctuating between -13.6% and 0.1% over the observed period, indicating that SG&A and R&D expenses continue to scale in lockstep with, or faster than, gross profit growth.
The persistent investment in R&D, which reached $120.3 million in 2026Q4, suggests that management is prioritizing product innovation over immediate bottom-line profitability. This strategy warrants investigation into whether these expenditures are successfully driving long-term competitive differentiation or merely sustaining the current market position against aggressive incumbents.
As reported in recent financial statements, Elastic consistently records significant stock-based compensation expenses, which totaled $77.5 million in 2026Q4, effectively acting as a persistent drag on GAAP earnings and complicating the assessment of the company's true cash-generative capacity.
The reliance on equity-based incentives suggests that the company's path to sustainable GAAP profitability is more difficult than the headline figures might imply. Analysts should focus on the gap between non-GAAP and GAAP results to determine if the current compensation structure is appropriately aligned with long-term shareholder value creation.
Quick answers to the most common questions about buying ESTC stock.
For fiscal year 2026, Elastic N.V. (ESTC) reported total revenue of $1.74B. This represents a 1872.5% increase compared to $88.2M in 2017.
Elastic N.V. (ESTC) is profitable, generating $367.8M in net income for the fiscal year ending 2026 with a net profit margin of 21.1%.
Elastic N.V. (ESTC) reported an operating income of $-33.5M, resulting in an operating profit margin of -1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Elastic N.V. (ESTC) generated $1.32B in gross profit for the year, representing a gross profit margin of 76.1%. This demonstrates the company's core pricing power and production efficiency.