Profile
Elastic provides a search and analytics platform that helps organizations search, analyze, and visualize large volumes of data in real time, now extended with AI agents and observability and security tools.
Elastic N.V. (NYSE: ESTC) is a publicly traded software company headquartered in San Francisco, California, that develops and sells the Elasticsearch search and analytics engine. Founded in 2012 by Shay Banon, Steven Schuurman, Uri Boness, and Simon Willnauer, Elasticsearch started as an open-source search engine built on top of Apache Lucene. The company went public in 2018.
As of its fiscal third quarter ended January 31, 2026, Elastic reported total revenue of $450 million, up 18% year-over-year, with subscription revenue of $426 million. The company had over 1,660 customers with annual contract value greater than $100,000 and a net expansion rate of approximately 112%. Elastic's product portfolio has expanded beyond search to include observability and security solutions, all built on the Elasticsearch platform.
The company has been investing heavily in AI capabilities, launching products like Agent Builder and Elastic Workflows, and integrating with NVIDIA cuVS for GPU-accelerated vector indexing. Elastic Cloud revenue reached $206 million in Q2 FY2026, representing 22% year-over-year growth. The company held $1.248 billion in cash and marketable securities as of January 31, 2026.
In October 2025, Elastic announced a $500 million share repurchase program. The company has partnered with CISA to offer a unified SIEM-as-a-Service platform on Elastic Cloud. Elastic's leadership includes CEO Ash Kulkarni, who took the role in 2022. The company has not disclosed any layoffs or major funding rounds in the period covered by the dossier.
Who buys this
- Large enterprises with complex search, observability, and security needs
- Government agencies, including U.S. federal civilian agencies via CISA partnership
- Technology companies using Elastic Cloud for log analysis and application performance monitoring
- E-commerce and media companies using Elasticsearch for site search and recommendation engines
- Financial services and healthcare organizations requiring real-time data analytics and security information and event management (SIEM)
Strengths and what to watch
Strengths
- Strong financial performance with 18% year-over-year revenue growth in Q3 FY2026 and a growing base of high-value customers (over 1,660 with ACV >$100k).
- Deep integration with major cloud providers (AWS, Azure, GCP) and a robust cloud business (Elastic Cloud revenue up 22% YoY in Q2 FY2026).
- Expanding AI capabilities with products like Agent Builder, Elastic Workflows, and GPU-accelerated vector indexing, positioning the platform for enterprise AI workloads.
Watch for
- Dependence on a single open-source core (Elasticsearch) and potential competition from open-source forks or managed services from cloud providers (e.g., AWS OpenSearch).
- Transition from open-source licensing (SSPL) may create friction with some developer communities and affect adoption.
- Customer concentration risk: while the company has over 1,660 large customers, a significant portion of revenue may come from a small number of large deals.
Recent moves
- 4mo ago Elastic Reports Fourth Quarter and Fiscal 2026 Financial Results
- 4mo ago Elastic to Announce Fourth Quarter and Fiscal 2026 Earnings Results on Thursday, May 28, 2026
- 7mo ago Elastic Reports Third Quarter Fiscal 2026 Financial Results
- 10mo ago Elastic Reports Second Quarter Fiscal 2026 Financial Results
Key Information
- Industry
- Open Source Infra - Search
- Founded
- 2012
- Headquarters
- San Francisco, California
Frequently Asked Questions
What is Elasticsearch used for?
Elasticsearch is a search and analytics engine used to search, analyze, and visualize large volumes of data in real time. It powers applications like site search, log analysis, and security monitoring, and now includes AI agents and observability tools.
Is Elasticsearch open source?
Yes, Elasticsearch started as an open-source search engine built on Apache Lucene. However, Elastic N.V. changed its licensing to the SSPL, which may affect community adoption. The core remains available on GitHub with active development.
How does Elastic Cloud perform financially?
Elastic Cloud revenue reached $206 million in Q2 FY2026, growing 22% year-over-year. This reflects strong demand for its managed search and analytics services, supported by deep integration with major cloud providers like AWS, Azure, and GCP.
What AI features does Elastic offer?
Elastic has launched AI products like Agent Builder and Elastic Workflows, and integrated with NVIDIA cuVS for GPU-accelerated vector indexing. These features help enterprises handle AI workloads, such as semantic search and real-time data analysis.
What is Elastic's net expansion rate?
Elastic reported a net expansion rate of approximately 112% in Q3 FY2026. This indicates that existing customers are increasing their spending on Elastic's products, reflecting strong customer satisfaction and upsell opportunities.
Who are Elastic's main competitors?
Elastic faces competition from open-source forks like AWS OpenSearch and managed services from cloud providers. Its dependence on the Elasticsearch core means any shift in community support or cloud provider offerings could impact its market position.
Sources
- github.com — Open-source repository for Elasticsearch, showing active development with 76.9k stars and 101,061 commits as of June 2026.
- ir.elastic.co — Q3 FY2026 financial results: $450M revenue, 18% YoY growth, 1,660+ customers with ACV >$100k, $1.248B cash.
- finance.yahoo.com — Q2 FY2026 financial results: $423M revenue, 16% YoY growth, Elastic Cloud revenue $206M, $500M share repurchase program announced.
- ir.elastic.co — Historical quarterly financial results links from FY2019 to FY2026.
- www.businesswire.com — Announcement of Q4 FY2026 earnings release date and company description as 'Search AI Company'.