Update shared on29 Jul 2025
Fair value Decreased 15%Despite a notable improvement in Elastic's profitability, as evidenced by a higher net profit margin and a sharply reduced forward P/E ratio, the consensus analyst price target has been significantly cut from $130.14 to $110.48.
What's in the News
- Issued Q1 FY2026 revenue guidance of $396–$398 million (14% year-over-year growth at midpoint) and FY2026 revenue guidance of $1.655–$1.670 billion (12% year-over-year growth at midpoint).
- Entered a five-year strategic collaboration agreement with AWS to accelerate AI-native enterprise solutions, focusing on joint product integrations, generative AI, seamless workload migrations to Elastic Cloud on AWS, and support for highly regulated industries.
- Elastic's Search AI Platform and AWS services will integrate to support generative AI features, cost-efficient serverless solutions, agentic AI interoperability, and improved data protection.
- Expanded recognition within the AWS Partner Network, including being named AWS Global Generative AI Infrastructure and Data Partner of the Year and receiving competency designations for Government and Education sectors.
- Launched hybrid search capabilities for Microsoft’s Semantic Kernel, making Elastic’s vector database the first to offer this feature, enabling advanced information retrieval by combining multiple search techniques.
Valuation Changes
Summary of Valuation Changes for Elastic
- The Consensus Analyst Price Target has significantly fallen from $130.14 to $110.48.
- The Net Profit Margin for Elastic has significantly risen from 2.74% to 4.64%.
- The Future P/E for Elastic has significantly fallen from 284.00x to 158.85x.
Disclaimer
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