Elastic reported a strong third quarter with revenue growth exceeding guidance, driven by robust subscription revenue and increasing customer adoption of its unified Search AI platform. The company highlighted product innovations and strategic partnerships, positioning itself to capitalize on the evolving AI landscape.
Total revenue increased 18% year-over-year to $450 million, exceeding guidance.
positiveTotal subscription revenue grew 19% year-over-year to $426 million.
positiveSales-led subscription revenue increased 21% year-over-year to $376 million.
positiveNon-GAAP operating margin improved to 18.6% from 15.1% in the prior year's nine-month period.
positiveAnnounced a new share repurchase program of up to $500 million.
positiveGAAP operating income was a mere $1 million, with a GAAP operating margin of 0.1% for the quarter.
attentionGAAP net loss for the nine months ended January 31, 2026 was $68.1 million.
negativeAdjusted free cash flow decreased to $54 million in Q3 FY26 from $99 million in Q3 FY25.
attentionOperating cash flow decreased to $43 million in Q3 FY26 from $88 million in Q3 FY25.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Annual Elastic Cloud | N/A | — | — | — | +26.0% |
Monthly Elastic Cloud | N/A | — | — | — | +6.0% |
Other subscription | N/A | — | — | — | +13.0% |
Services | N/A | — | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Elastic delivered yet another outstanding quarter, beating the high end of guidance across all key metrics and showcasing the power of our platform and our business model.
As LLM capabilities evolve, context is becoming the most important ingredient for enabling AI use within the enterprise. Elastic’s data platform has unparalleled advantages around unstructured data and search, and is uniquely positioned to deliver accurate, real-time context for AI systems at scale.
In Q3, customers increasingly turned to our unified Search AI platform to drive innovation and efficiency, accelerating large deal momentum and significant competitive displacements across all areas of our business.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.