Q4 2026 Elastic NV Earnings Call Transcript
Key Points
- Elastic NV (ESTC) finished the year strong, beating guidance across every key metric, marking the seventh consecutive quarter of disciplined field execution.
- The company saw a significant acceleration in CRPO growth to 20%, with organizations increasingly choosing Elastic for long-term AI transformations.
- Elastic achieved a 16% total revenue growth in Q4 and a non-GAAP operating margin of 14.8%, with full-year revenue growth of 17% and a non-GAAP operating margin of 16.4%.
- The company reported a record Q4 for $1 million deals, adding more than 30 net new customers to its $1 million-plus ACV cohort, with a 30% growth in customers spending over $5 million annually.
- Elastic's partnership with the Cybersecurity and Infrastructure Security Agency (CISA) is growing, with more civilian agencies switching to Elastic Cloud, indicating strong public sector momentum.
- The shift towards cloud commitments impacted in-quarter Q4 revenue, as cloud commitments ramp over the year, unlike self-managed commitments which have upfront revenue recognition.
- There was a slight churn in the monthly cloud business, which grew only 3%, reflecting challenges in the SMB segment.
- Elastic's guidance for FY27 indicates a slower revenue growth rate of 14.6% year-over-year at the midpoint, compared to the previous year's growth.
- The company faces variability in customer preferences between self-managed and cloud deployments, impacting revenue recognition patterns.
- Elastic's pricing adjustments, including a 3% increase for cloud and a 5% increase for self-managed, may not significantly impact revenue due to the usage-based model.
Good afternoon. And welcome to the Elastic fourth quarter fiscal 2026 earnings results conference call.
All participants will be in listen-only mode.
Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad.
To withdraw your question, please press then 2.
Please note, this event is being recorded.
I would now like to turn the conference over to Erik Prangle, Global Vice President of Finance. Please go ahead.
Good afternoon, and thank you for joining us on today's conference call to discuss Elastic's fourth quarter fiscal 2026 financial results.
On the call, we have Ashkul Karni, Chief Executive Officer, and Navam Willihinda, Chief Financial Officer.
Following their prepared remarks, we will take questions.
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