Should You Buy This Mid Cap Stock At This Time-ESTC

Acrobull UK Advisory Services Ltd.

October 16			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Elastic NV.	ESTC-NYSE	Technology		$8.694 Billion	Medium

Elastic N.V., a company specializing in search artificial intelligence (AI), offers software platforms designed to operate in hybrid, public, private, and multi-cloud environments both in the United States and globally. Its main offering is the Elastic Search AI Platform, which includes a suite of software products that ingest and store data from diverse sources and formats, enabling search, analysis, and visualization of that data.

Recent Highlights

CEO Statement- Elastic had a remarkable first quarter, marking an impressive beginning to the fiscal year by surpassing the upper end of our guidance across all key metrics," stated Ash Kulkarni, CEO of Elastic. "This outstanding performance was driven by the continued strong demand for our unique and highly differentiated technology, as well as the exceptional execution of our sales team.

As artificial intelligence increasingly influences technology decisions across industries, our results clearly showcase the tangible value that Elastic’s Search AI Platform provides to our customers, helping them unlock new possibilities in data search, analysis, and visualization.

First Quarter 2026 Financial Highlights

Elastic reported a total revenue of $415 million for the period, reflecting a robust year-over-year increase of 20%, or 18% when adjusted for constant currency. Subscription revenue, which forms a key component of the company’s business, totaled $389 million, also up by 20% year-over-year, or 19% when measured on a constant currency basis.

Breaking it down further, sales-led subscription revenue—calculated by excluding the monthly Elastic Cloud revenue—reached $339 million, marking a solid 22% growth compared to the previous year, or 20% when adjusted for constant currency fluctuations.

Meanwhile, Elastic Cloud revenue saw a notable rise, coming in at $196 million, a 24% year-over-year increase, consistent both in reported and constant currency terms.

Additionally, the company’s current remaining performance obligations, which represent future contracted revenue, stood at $956 million, an 18% increase year-over-year, or 17% on a constant currency basis, underscoring strong future growth potential.

Stock Observation-Looking ahead, Elastic remains well-positioned for continued growth, with the strong momentum in both total revenue and subscription revenue expected to carry into future periods. The 20% year-over-year increase in total revenue and the steady growth in subscription revenue, which saw a 19% rise on a constant currency basis, demonstrates the ongoing demand for Elastic’s innovative solutions. As the company continues to scale its offerings and expand its customer base, we anticipate further growth in both revenue streams, driven by the increasing adoption of Elastic’s Search AI Platform across industries. This solid performance underscores our confidence in Elastic’s ability to deliver sustained value to our customers and drive long-term shareholder value.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$80.19 USD
Acrobull Recommendation	Buy at $78.25 USD
Target Price	Target $89.25 USD
RSI Level	49
Total Shares Outstanding	343.21 Million
Shares Held by Insiders Shares Held by Institutions Risk Factor Stop Loss	12.32% 86.76% Medium 5%