Elastic (ESTC) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and FY25 results, with Q4 revenue of $388 million (up 16% year-over-year) and FY25 revenue of $1.483 billion (up 17%), driven by robust sales execution, Elastic Cloud, and persistent demand for AI-powered solutions.

• Ended FY25 with over 1,510 customers spending $100,000+ and more than 210 customers with $1 million+ in annual contract value, marking record additions to these cohorts.

• GenAI and platform consolidation are key growth drivers, with over 2,000 Elastic Cloud customers using GenAI use cases and 25% of $1M+ customers leveraging AI workloads.

• Strategic partnerships with AWS, Google, and NVIDIA are accelerating AI innovation and expanding go-to-market opportunities.

• Recognized as a leader in search, observability, and security analytics by major industry analysts.

Financial highlights

• Q4 total revenue: $388M, up 16% year-over-year; FY25 total revenue: $1.483B, up 17% year-over-year.

• Elastic Cloud revenue grew 23% year-over-year in Q4 and 26% for FY25, representing 47% and 46% of total revenue, respectively.

• Q4 subscription revenue: $362M, up 16% as-reported and 17% in constant currency; subscription revenue comprised 93% of total revenue.

• Adjusted free cash flow for FY25 was $286M; Q4 adjusted free cash flow margin was 22%, FY25 margin was 19%.

• Cash, cash equivalents, and marketable securities totaled $1.4B at FY25 end.

Outlook and guidance

• FY26 revenue guidance: $1.655B–$1.67B, representing 12% year-over-year growth at midpoint.

• Q1 FY26 revenue guidance: $396M–$398M, 14% year-over-year growth at midpoint.

• FY26 non-GAAP operating margin expected at ~16%; Q1 at ~11.5%.

• FY26 non-GAAP diluted EPS: $2.24–$2.32; Q1 FY26 non-GAAP EPS: $0.41–$0.43.

• Guidance reflects prudence due to macro uncertainty, especially extrapolating U.S. public sector headwinds.