Elastic Cloud
Elastic, founded in 2012 by Shay Banon, is a search and data analytics company best known for its Elasticsearch engine.
Profile
Elastic provides a cloud-based platform for search, security, and observability powered by its Elasticsearch engine.
Elastic, founded in 2012 by Shay Banon, is a search and data analytics company best known for its Elasticsearch engine. The company went public in 2018 and has since expanded its product portfolio to include solutions for search, security, and observability, primarily delivered via its Elastic Cloud platform. As of Q4 FY 2026, Elastic reported revenue of $451 million, up 16% year-over-year, with total FY26 revenue reaching $1.739 billion, a 17% increase.
The company serves over 1,720 customers with an Annual Contract Value (ACV) greater than $100,000. Elastic's recent focus has been on integrating AI capabilities, particularly in search and workflow automation, as evidenced by partnerships with Google for security analytics and the launch of multimodal embedding models like Jina v5. The company has also achieved FedRAMP High authorization, expanding its reach into government and highly regulated industries. Despite a strong financial performance, Elastic faces industry-wide pressures, including the broader tech layoffs of 2025, though specific layoff numbers for Elastic are not disclosed in the dossier.
Who buys this
- Enterprises with large-scale search and data analytics needs
- Government agencies requiring FedRAMP-compliant solutions
- Tech companies integrating AI-powered search
- Security teams needing SIEM and XDR capabilities
- DevOps teams managing observability for distributed systems
Publicly disclosed clients
- GitHub
- Nikkei
- Gigamon
- CADDi
- Tavily
- Corvian
- City of Sacramento
Strengths and what to watch
Strengths
- Strong revenue growth (17% YoY in FY26) and expanding customer commitments (20% increase in cRPO)
- Deep integration with major cloud providers (AWS, Google Cloud, Microsoft Azure) across 50+ regions
- FedRAMP High authorization and multi-cloud flexibility for regulated industries
Watch for
- Competition from larger cloud providers offering native search and analytics services
- Potential margin pressure as AI infrastructure investments grow
- Execution risks in maintaining growth while integrating multiple product lines (search, security, observability)
Recent moves
Key Information
- Founded
- 2012
- Employees
- 3738
- Country
- Netherlands
Frequently Asked Questions
What is Elastic Cloud used for?
Elastic Cloud provides a managed platform for search, security analytics, and system observability. It runs on Elasticsearch technology, serving enterprises, government agencies, and tech companies needing scalable data solutions. The platform supports AI-powered search, threat detection, and infrastructure monitoring across 50+ cloud regions.
How does Elastic Cloud compare to AWS OpenSearch?
Elastic Cloud offers deeper AI integration and FedRAMP High authorization, which AWS OpenSearch lacks. While both provide search capabilities, Elastic specializes in security and observability workflows. Elastic maintains multi-cloud flexibility across AWS, Google Cloud, and Azure, unlike AWS's single-cloud OpenSearch service.
Is Elastic financially stable?
Elastic reported $1.739 billion revenue in FY26, growing 17% year-over-year. With over 1,720 customers spending $100k+ annually and 20% growth in committed revenue, the company shows financial health. However, analysts question future growth potential amid AI infrastructure investments and cloud provider competition.
What industries use Elastic Cloud?
Major adopters include enterprises with large-scale search needs (GitHub, Nikkei), government agencies requiring FedRAMP compliance, and security teams using its SIEM tools. DevOps teams also leverage Elastic for observability in distributed systems, while AI companies utilize its multimodal embedding models.
Does Elastic Cloud support AI features?
Yes, Elastic integrates AI through partnerships like Google for security analytics and its Jina v5 embedding models. The platform enhances search relevance and automates workflows using machine learning. These capabilities target tech companies building AI-powered applications and enterprises streamlining data analysis.
Is Elastic Cloud government-approved?
Elastic Cloud holds FedRAMP High authorization, meeting strict security requirements for U.S. government agencies. This certification enables deployment in regulated industries like defense and healthcare. The City of Sacramento and other public sector entities use Elastic for compliant search and analytics solutions.
Sources
- ir.elastic.co — Q4 FY26 financial results
- futurumgroup.com — Q3 FY26 analyst perspective
- www.elastic.co — Product capabilities and positioning
- www.elastic.co — Notable client list