Elastic N.V. reported its financial results for the third quarter of fiscal 2026, revealing a total revenue of $449.9 million, an 18% increase from $382.1 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose by 19% to $425.7 million, driven by strong adoption of both Elastic Cloud and other subscription services. The company also recorded a net income of $7.8 million, a significant turnaround from a net loss of $17.1 million in the prior year, marking a notable improvement in profitability.
In terms of operational metrics, Elastic's customer base continued to expand, with over 1,660 customers generating more than $100,000 in annual contract value as of January 31, 2026, compared to 1,460 in the previous year. The company reported a net expansion rate of approximately 112%, indicating that existing customers are increasing their spending on Elastic's offerings. The total employee headcount reached 3,921, reflecting the company's ongoing investment in talent to support its growth strategy.
Elastic has also made strategic moves to enhance its product offerings, including the acquisition of Conic AI Technology Limited for $43.3 million in October 2025, aimed at bolstering its AI capabilities. The company has focused on expanding its Elastic Cloud services, which accounted for 49% of total revenue in the latest quarter, up from 47% a year earlier. This shift towards cloud-based solutions is expected to continue, although it may exert some pressure on gross margins due to associated hosting costs.
The company’s balance sheet remains strong, with cash, cash equivalents, and marketable securities totaling $1.25 billion as of January 31, 2026. Elastic's management expressed confidence in its ability to fund operations and strategic initiatives for at least the next 12 months, despite the potential for ongoing economic challenges. The company has also initiated a share repurchase program, authorizing up to $500 million in buybacks, of which $300 million has already been utilized.
Looking ahead, Elastic anticipates continued growth driven by the expansion of its product features and customer base. The company remains vigilant regarding macroeconomic conditions that could impact IT spending and sales cycles, but it is committed to investing in research and development to enhance its platform and drive future revenue growth.
About Elastic N.V.
Elastic N.V. develops Search AI platform combining advanced search, machine learning, and AI capabilities. Its solutions—Elasticsearch, Elastic Observability, and Elastic Security—serve organizations across industries, enabling real-time data analysis, security, and IT monitoring. The company offers cloud and self-managed software, open source development, and community engagement, focusing on scalable, flexible, and developer-friendly products to support digital transformation and data-driven decision-making worldwide.
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