Elastic (3E1) Q1 2027 Earnings Report

The call presented broad-based positive momentum: accelerated revenue growth, strong contract backlog (CRPO/RPO), expanding high-value customer cohort, rising AI adoption among large customers, product innovations (vector search, columnar mode, PromQL support) and strategic wins including public-sector migrations and acquisitions. Management raised full-year guidance and expects continued margin expansion and positive GAAP operating results. Headwinds are modest and largely one-time (restructuring charges) or expected lags (trailing NER, cloud consumption variability).

Elastic raised its outlook and gave specific Q2 and full‑year FY27 guidance: for Q2 it expects total revenue of $486–$487M (≈15% CC growth at midpoint), sales‑led subscription revenue of $407.5–$408.5M (≈17% CC), non‑GAAP operating margin ≈19% and non‑GAAP diluted EPS $0.80–$0.82 on 108–109M diluted shares; for fiscal 2027 it now expects total revenue of $1.998–$2.010B (≈15.3% CC at midpoint), sales‑led subscription revenue $1.682–$1.694B (≈17.5% CC), non‑GAAP operating margin ≈19.4%, non‑GAAP diluted EPS $3.29–$3.37 on 108.5–109.5M shares and an adjusted free cash flow margin of 21.5%, while management expects GAAP operating profitability in Q2 and for the full year and to see revenue acceleration in H2 with Q4 highest; these raises were supported by Q1 results (revenue $478M, +15%; sales‑led subscription $399M, +18%/+17% CC; non‑GAAP op margin 16.2%; CRPO $1.2B, +21%/+20% CC; RPO $1.9B, +27%; subscription gross margin 81%; total gross margin 77%; Q1 adjusted FCF margin 30%), and the company noted Q1 restructuring charges of about $20M with $2–$5M more expected.