Elastic Stock Drops After Q2 Earnings Despite Double Beat

Core Insights - Elastic N.V. reported strong second-quarter earnings, with adjusted earnings of 64 cents per share, surpassing analyst expectations of 58 cents [2] - The company achieved quarterly revenue of $423.48 million, exceeding the Street estimate of $418.16 million [2] - CEO Ash Kulkarni highlighted robust growth across the company, attributing success to the positive impact of AI on all business areas [3] Financial Performance - Total subscription revenue reached $398 million, marking a 17% year-over-year increase, or 16% on a constant currency basis [5] - Sales-led subscription revenue was $349 million, an 18% year-over-year increase, or 17% on a constant currency basis [5] - Elastic Cloud revenue amounted to $206 million, reflecting a 22% year-over-year increase, both as reported and on a constant currency basis [5] - Current remaining performance obligations stood at $971 million, up 17% year-over-year, or 15% on a constant currency basis [5] Guidance and Outlook - The company raised its fiscal 2026 adjusted EPS guidance to a range of $2.40 to $2.46, compared to the previous estimate of $2.36 [4] - Revenue guidance was also increased to a range of $1.715 billion to $1.721 billion, surpassing the prior estimate of $1.7 billion [4] Market Reaction - Following the earnings report, Elastic's stock price fell by 11.73%, trading at $72.45 in extended trading [4]