Upbeat Guidance and Buyback Lift Shares

Elastic N.V. (NYSE: ESTC) shares jumped 10% after the Netherlands-based software firm raised its revenue outlook for Q2 and FY2026 and announced a $500 million share repurchase program at its Analyst Day presentation.

Q2 FY2026 Revenue Outlook: $417M–$419M (previously $415M–$417M)
Full-Year FY2026 Revenue: $1.69B–$1.70B (previously $1.68B–$1.69B)

CFO Navam Welihinda said the buyback reflects the Board’s confidence in the company’s long-term strategy and execution:

“The share repurchase underscores our confidence in the business, strategy, and execution as we continue driving profitable growth.”

Business Momentum

Elastic — known for its search, observability, and security software — continues to benefit from the rise in AI-enabled data analytics and growing enterprise cloud adoption.

The company’s Elastic Cloud platform remains its key growth driver, expanding across AWS, Azure, and Google Cloud.
Analysts note improving subscription margins and operating leverage as positive indicators heading into 2026.

Investor Sentiment

The combination of a stronger outlook and buyback announcement reinforced investor confidence in Elastic’s trajectory, driving shares sharply higher.