Analysts on Wall Street project that Elastic (ESTC) will announce quarterly earnings of $0.64 per share in its forthcoming report, representing an increase of 1.6% year over year. Revenues are projected to reach $438.15 million, increasing 14.7% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company announces its ...

Core Insights - Elastic has launched jina-embeddings-v5-text, a new family of multilingual embedding models with 0.2B and 0.6B parameters, which deliver state-of-the-art performance in search and semantic tasks [1][2]. Model Performance - Despite their smaller size, these models outperform larger models with 7B to 14B parameters and achieve best-in-class results on the MMTEB benchmark for comparable models [2]. - The compact size of the models allows for efficient hybrid search, reducing infrastructure costs and enabling faster query responses, particularly in resource-constrained environments [2]. Availability and Deployment - The jina-embeddings-v5-text models are available through various channels, including open-weight models on HuggingFace and the Elastic Inference Service (EIS), which provides GPU-accelerated inference [3][5]. - Users can access these models via an online API or host them locally using vLLM, llama.cpp, or MLX, with detailed instructions available on Hugging Face [5]. Model Specifications - The family includes two models: jina-embeddings-v5-text-small (239M parameters) and jina-embeddings-v5-text-nano (677M parameters), optimized for four key tasks: retrieval, text matching, classification, and clustering [4][9]. Company Overview - Elastic integrates search technology with artificial intelligence to transform data into actionable insights, serving thousands of companies, including over 50% of the Fortune 500 [7].

Core Viewpoint - Elastic is preparing to present at an investor conference to highlight its strategic initiatives, financial health, and future growth plans, which could significantly influence investor sentiment and stock price [1] Group 1: Financial Performance - Morgan Stanley has set a price target of $80 for Elastic (ESTC), indicating a potential price increase of about 31.08% from its current price of $61.03 [2] - The stock currently trades at $61.55, reflecting a slight increase of 0.85% or $0.52 [2] - Elastic's market capitalization is approximately $6.49 billion, with a trading volume of 557,374 shares, indicating the company's size and investor interest [4] Group 2: Stock Volatility - The stock's trading range today has been between $60.05 and $62.31, indicating some volatility [3] - Over the past year, ESTC has experienced a high of $117.49 and a low of $56.70, showcasing its fluctuating nature [3]

Core Viewpoint - Elastic is set to announce its third quarter fiscal 2026 earnings results on February 26, 2026, after the U.S. market closes, followed by a conference call to discuss the financial results and business outlook [1]. Group 1: Earnings Announcement - The financial results for the third quarter fiscal 2026, which ended on January 31, 2026, will be released after market close on February 26, 2026 [1]. - A conference call will be held at 2:00 p.m. PT / 5:00 p.m. ET on the same day to review the financial results and business outlook [1]. Group 2: Company Overview - Elastic, known as the Search AI Company, integrates search technology with artificial intelligence to transform data into actionable insights [1]. - The Elastic Search AI Platform supports various solutions, including search, observability, and security, and is utilized by over 50% of Fortune 500 companies [1].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 208.73 CNY per share, compared to the current price of 180.30 CNY [3]. Core Insights - The company is expected to achieve a total revenue of 420 million to 450 million CNY in 2025, representing a year-on-year growth of 13.06% to 21.13%. The net profit attributable to shareholders is projected to be between -250 million to -220 million CNY [7]. - In Q4 2025, the company anticipates revenue of 190 million to 220 million CNY, with a year-on-year growth rate of 20.4% to 38.9%, significantly higher than the 7.4% growth rate in the first three quarters of 2025 [9]. - The demand for the company's AI foundational software products, such as TDH and Sophon LLMOps, is robust, reflecting a strong market need for digital transformation solutions [9]. - The company is actively investing in the research and development of new AI database technologies, which are expected to enhance its competitiveness in the AI foundational software sector [9]. - The ArgoDB joint solution, based on Haiguang Information's CPU, has been successfully implemented in key industries such as finance, energy, and government, indicating strong market acceptance [9]. Financial Forecast and Investment Recommendations - Revenue projections for 2025 to 2027 are estimated at 440 million, 500 million, and 580 million CNY, respectively, with growth rates of 17.3%, 15.8%, and 14.8% [10]. - The net profit attributable to shareholders is expected to improve from -240 million CNY in 2025 to -70 million CNY in 2027, with corresponding EPS estimates of -1.99 CNY, -0.87 CNY, and -0.58 CNY [10]. - The company is compared to peers such as MongoDB, Snowflake, and Elastic, with a premium valuation due to the scarcity of A-share big data companies and the promising future of AI software tools [15][14].

Core Insights - Elastic has launched the Elastic Inference Service (EIS) via Cloud Connect, enabling self-managed Elasticsearch deployments to access cloud-hosted inference capabilities without the need for GPU infrastructure management [1][3] - The EIS allows organizations to implement advanced semantic search capabilities efficiently while keeping their existing architecture and data on-premises [2][3] Group 1 - The EIS is now available for self-managed customers using Elastic Stack 9.3, providing access to GPU-based embedding and reranking models, including those from Jina.ai [2][3] - This service simplifies the adoption of semantic search for self-managed customers by eliminating the complexity associated with GPU infrastructure [3] - Users can benefit from a range of cloud services, including automated diagnostics and fast AI inference, while maintaining data security on-premises [3] Group 2 - Elastic integrates its expertise in search technology with artificial intelligence to transform data into actionable insights, serving thousands of companies, including over 50% of the Fortune 500 [4]

Core Insights - Elastic has introduced two Jina Rerankers on its Elastic Inference Service (EIS), enhancing its capabilities in providing fast and high-quality inference for users [1] Group 1: Product Development - The new Jina Rerankers offer low-latency and high-precision multilingual reranking, which is a significant improvement for the Elastic ecosystem [1] - EIS is a GPU-accelerated inference-as-a-service that simplifies the process of running inference without the need for complex setup or hosting [1] Group 2: Market Context - As generative AI prototypes transition into production-ready search and retrieval-augmented generation (RAG) systems, users are increasingly facing challenges related to relevance and inference [1]

Core Insights - The article discusses the investment potential of Elastic N.V. (ESTC), highlighting it as undervalued with an estimated 30% upside from its stock price of approximately $74.5 to the author's Fair Value estimate [1] Group 1: Investment Strategy - The investment style is described as "Fundamental Options," which combines fundamental analysis with options trading strategies [1] - The author employs various strategies including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - The author typically invests for the long term but also utilizes 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2: Background and Experience - The author has a background in software development, which informs their focus on technology investments [1] - Teaching is mentioned as a passion, with experience in both formal and informal education, including authoring a free local investing newsletter [1]

Core Insights - Elastic N.V. (ESTC) is identified as undervalued, with a potential upside of approximately 30% from its stock price of around $74.5 to the estimated Fair Value [1] Group 1: Investment Strategy - The investment style is described as "Fundamental Options," combining fundamental analysis with options strategies [1] - Various investment strategies are pursued, including income-oriented investments, growth at a reasonable price, deep value based on discounted cash flow, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 2: Background and Teaching - The analyst has a background in software development, which informs their focus on technology investments [1] - Teaching is a passion, with experience in both formal and informal education, including authoring a free local investing newsletter [1]

Core Insights - The discussion features a fireside chat with Elastic's GVP of Finance, Eric Prengel, focusing on cybersecurity and infrastructure software [1]. Group 1 - The lead analyst from Needham & Company, LLC, Michael Cikos, is facilitating the conversation [1]. - The session aims to be interactive, encouraging audience questions during the discussion [1].