Elastic NV

Datadog's enterprise new logo annualized bookings more than doubled year over year in the second quarter of 2026, with customers generating $100,000 or more in annual recurring revenue climbing to about 4,720, a 23% increase from roughly 3,850 a year prior, while total customer count rose to approximately 33,400 from 31,400. Over 750 AI-native customers now rely on Datadog, and all 10 of the largest AI companies are counted among its customers, with MCP tool calls quadrupling quarter over quarter. The momentum builds on a quarter in which revenues grew 36% year over year to $1.12 billion, non-GAAP operating margin reached 23% from 20%, free cash flow rose to $279 million from $165 million, and remaining performance obligations reached $3.47 billion, up 43%. Third-quarter revenue guidance of $1.135 billion to $1.145 billion and a full-year range of $4.45 billion to $4.47 billion embed a previously flagged usage reduction from its single largest customer, while full-year non-GAAP operating income guidance of $1.01 billion to $1.03 billion points to continued margin discipline against elevated GAAP operating expense growth tied partly to the Adaptive ML acquisition. Rivals Dynatrace and Elastic are reporting comparable enterprise expansion, with Dynatrace posting record new-logo annual recurring revenue growth of more than 160% and total ARR of $2.14 billion, up 17%, and Elastic growing its $100,000-plus ACV customer cohort past 1,800 accounts alongside 27% remaining performance obligation growth. Datadog shares have surged 74.7% year to date, and the Zacks Consensus Estimate for 2026 earnings stands at $2.52 per share.

Elastic rolled out Elasticsearch Vector Database on September 11, a serverless offering that lets developers ship large-scale vector search and AI applications without assembling infrastructure themselves. The launch came less than three weeks after Elastic reported first-quarter fiscal 2027 results on August 27 for the period ended July 31, when total revenue reached $478 million, up 15% year over year, current remaining performance obligations grew 21% and remaining performance obligations grew 27%. Sales-led subscription revenue rose 18% year over year to $399 million, and the company added more customers with annual contract value above $100,000 than in any prior quarter, pushing that cohort past 1,800 from over 1,720 in the fourth quarter of fiscal 2026 and over 1,550 a year earlier, while net expansion rate held around 111% and adjusted free cash flow reached $143 million. Guidance for the second quarter of fiscal 2027, ending October 31, calls for revenue of $486 million to $487 million and a swing to positive GAAP operating margin, with full fiscal 2027 non-GAAP operating margin guided to roughly 19.4%, up from 16.2%. The company still posted a GAAP operating loss of $24 million, a -5% operating margin, and a GAAP net loss per share of $0.16, against $77 million in non-GAAP operating income and $0.70 in non-GAAP diluted earnings per share, while repurchasing about 0.8 million shares for roughly $40 million under its $500 million buyback program and acquiring Deductive AI.

OpenAI has committed $1 billion to subsidize access to its Daybreak cyber models and products for organizations through a new initiative called "Daybreak for Frontline Defenders." The program, initially available only in the United States, will also provide hands-on training, technical assistance, and new partnerships over the next six months, with plans to expand to partner countries. Cybersecurity firms including Cloudflare, SentinelOne, Elastic, and Proofpoint have partnered with OpenAI to integrate Daybreak models into their operations. OpenAI will prioritize operators of essential services such as water and electric grid systems, state and local governments, community banks, nonprofits, and open-source maintainers. The company also announced a pilot with the Multi-State Information Sharing and Analysis Center to train cyber defenders. Daybreak, launched in May, offers AI capabilities for authorized cyber defense, including code review, threat analysis, and vulnerability prioritization.

Elastic announced plans to bring OpenAI GPT cyber models into Elastic Security, aiming to give security teams specialized cyber reasoning for alert triage, investigation, and remediation without separate model infrastructure. The integration will occur through OpenAI's Daybreak Defense Network and Elastic's managed, GPU-accelerated Elastic Inference Service. Mike Nichols, Elastic's general manager for Security, said the move helps defenders respond at machine speed, while OpenAI's McCall McIntyre highlighted the benefits of an AI-driven security operations center. The announcement was made on September 3, 2026, and the company noted that its platform is used by more than 75% of the Fortune 100.

Elastic N.V. reported a fiscal first-quarter earnings beat and raised its full-year guidance, sending shares up more than 15% in after-hours trading, yet DA Davidson maintained a Neutral rating on the stock. For the quarter ending July 31, 2026, Elastic posted total revenue of $478 million, up 15% year-over-year, with subscription revenue of $449 million and sales-led subscription revenue of $399 million, up 18%. The company added over 80 customers with annual contract value above $100,000, bringing the total to more than 1,800, and repurchased about $40 million of shares, leaving $380 million used under its $500 million buyback program. Elastic forecast fiscal 2027 revenue of $1.998 billion to $2.010 billion with a non-GAAP operating margin of 19.4%. DA Davidson raised its price target to $100 from $80 but cited execution consistency as a key risk, noting that one quarter of acceleration may not be enough to prove a lasting trend.

Tencent Cloud and Elastic have announced an expanded strategic collaboration in Shenzhen to deepen technical and product cooperation across AI search, enterprise data, and agentic applications, aiming to help enterprises build dedicated context infrastructure for the AI era. The two companies jointly launched Tencent Cloud Elasticsearch Service (ES) Enterprise Edition, which integrates Elastic's enterprise-grade search and AI capabilities. Elastic's Search AI Platform is used by more than 50% of the Fortune 500, and Tencent Cloud has offered Elasticsearch-based services since 2016. In selected AI search scenarios, performance has improved by up to 5x, hybrid search latency has fallen by 60%, and memory consumption has been reduced by more than 50%. Tencent Cloud Elasticsearch Service now runs 20,000 clusters and 100,000 nodes, supporting search traffic peaks for large-scale events like the CMG Spring Festival Gala and the Paris Olympic Games.

Elastic and PagerDuty shares surged on Friday following their latest earnings results, as enterprise software stocks showed mixed action. Elastic, the Amsterdam-based search and AI platform, rocketed about 19% by noon trading after reporting first-quarter fiscal 2027 results on Thursday. PagerDuty popped up about 9% after beating estimates for its second quarter fiscal 2027 and announcing plans to cut about 15% of its workforce. Meanwhile, the iShares Expanded Tech-Software Sector ETF inched down 0.7% but has gained over 20% in the past month. ServiceNow shares rose 3.5%, with CFO Gina Mastantuono citing $500 million in AI efficiencies this year and an AI business crossing $1 billion in Q2. Cybersecurity stocks were mostly in the red, led by Rubrik sinking 11% despite strong Q2 results, while SentinelOne dropped 8.5% and Palo Alto Networks slid 4%.

PayPal shares plunged nearly 16% premarket after Bloomberg reported that buyout firm Advent and payment processor Stripe decided not to pursue a takeover, which would have been one of the largest leveraged buyouts. Meanwhile, Affirm jumped 13% after reporting $1.17 billion in revenue for its fiscal fourth quarter, beating the LSEG estimate of $1.11 billion, and issued first-quarter revenue guidance above estimates. Gap popped nearly 15% after announcing Michael Francis will become CEO of Old Navy starting Nov. 2, succeeding Haio Barbeito, and reported second-quarter adjusted earnings of 52 cents per share, topping the 48-cent consensus. Elastic N.V. surged over 17% after its full-year guidance exceeded expectations, with adjusted EPS forecast between $3.29 and $3.37 versus the $3.24 estimate. Marvell Technology dropped nearly 8% despite guiding current-quarter adjusted earnings to $1.10 per share plus or minus 5 cents, above the $1.07 estimate, but its gross margin guidance of 57.5% to 58.5% came in below the StreetAccount consensus of 58.5%. Rubrik fell over 5% after its non-GAAP gross margin of 81% missed the 81.7% estimate, despite beating on earnings and revenue. Autodesk declined nearly 4% after its third-quarter adjusted EPS guidance of $3.04 to $3.09 fell short of the $3.14 consensus.

U.S. stock futures slipped slightly Friday morning as investors sifted through corporate earnings and awaited remarks from Federal Reserve Chairman Kevin Warsh. Gap shares rose more than 13% in premarket trading after the retailer named Michael Francis as CEO of Old Navy, its largest brand, and raised its annual profit outlook following a quarterly beat. Marvell Technology fell over 7% despite raising its fiscal 2027 and 2028 revenue forecasts, as investors were disappointed the outlook didn't reflect an accelerated contribution from its AI chip partnership with Google. PayPal tumbled about 14% after Bloomberg reported that Stripe and Advent International abandoned their bid to acquire the payments giant at $60.50 per share, valuing it at over $53 billion. SentinelOne dropped over 4% on a weak profit outlook, while Elastic surged nearly 22% on strong results and a better-than-expected full-year forecast.

Stock futures were mixed Friday as investors awaited Federal Reserve Chair Kevin Warsh's keynote speech at Jackson Hole, with energy market pressures and U.S.-Iran uncertainty capping risk appetite. Elastic shares jumped 21% after the software firm beat FQ1 estimates, guiding Q2 revenue to $486M-$487M and raising its FY2027 outlook to $1.998B-$2.010B with adjusted EPS of $3.29-$3.37. Affirm Holdings rose 9% on strong FQ4 results and an upbeat FY2027 forecast, including GMV above $64B and adjusted operating margin over 30.5%. PayPal tumbled 13% after a consortium of Advent and Stripe abandoned its pursuit, which had offered more than $50B for the fintech. Rubrik fell 8% despite beating Q2 estimates and raising guidance, while Marvell Technology dropped 8% even after topping Q2 expectations with record revenue of $2.739B and strong AI-driven outlook.

Enterprise software and SaaS stocks surged in the afternoon session after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth rather than threatening legacy business models. ServiceNow jumped 9.8%, Zscaler 9.9%, SentinelOne 11.8%, Asana 8.1%, and Elastic 7.8%, following stronger-than-expected results from major tech firms. Salesforce's AI-powered Agentforce reached $1.5 billion in annual recurring revenue, and Slackbot surpassed 1 million active users in five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta said AI-focused offerings drove about 30% of new bookings and increased contract values by roughly 40%. The rally, highlighted by a 20% surge in Salesforce, reflects confidence that established vendors can capture value from AI deployment.

Elastic raised its full-year non-GAAP EPS guidance to $3.29-$3.37 and projected FY 2027 total revenue of $1.998 billion to $2.010 billion, citing a strong first quarter. In Q1, the company reported total revenue of $478 million, sales-led subscription revenue of $399 million, and a non-GAAP operating margin of 16.2%. CEO Ashutosh Kulkarni highlighted strong demand across search, AI, and security, with CRPO growth of 21% and RPO growth of 27%. The company also acquired Deductive AI and nominated Julia Liuson to its board. CFO Navam Welihinda guided Q2 total revenue of $486 million to $487 million and non-GAAP EPS of $0.80 to $0.82.

In extended trading, Gap shares jumped about 7% after the company announced Michael Francis will become CEO of Old Navy starting Nov. 2, succeeding Haio Barbeito, and reported second-quarter adjusted earnings of 52 cents per share, beating the LSEG consensus of 48 cents. Marvell Technology was marginally lower despite beating expectations with adjusted earnings of 94 cents per share on $2.74 billion in revenue, versus the anticipated 93 cents and $2.71 billion. Workday dropped 5.7% after its current-quarter subscription revenue outlook only matched analyst expectations, though it surpassed estimates on both top and bottom lines for the second quarter. Rubrik tumbled 10% despite beating analyst expectations for the second quarter and hiking its guidance, reporting adjusted earnings of 20 cents per share on $427 million in revenue, versus the expected 4 cents and $396 million. Autodesk slid 6% after its earnings projections disappointed, with third-quarter adjusted earnings guidance of $3.04 to $3.09 per share below the $3.14 consensus, and full-year guidance of $12.52 to $12.60 per share versus the $12.60 anticipated. Elastic N.V. surged 15% after full-year guidance topped expectations, with adjusted earnings of $3.29 to $3.37 per share on revenue of $1.998 billion to $2.010 billion, beating the $3.24 and $1.99 billion estimates. SentinelOne shed almost 7% after issuing a weak current-quarter and full-year earnings outlook, overshadowing a stronger-than-expected second-quarter report.

Elastic has nominated Julia Liuson, a veteran Microsoft technology executive, to its Board of Directors, subject to a shareholder vote at the annual general meeting in October 2026. Liuson, who most recently served as President of Microsoft's Developer Division, brings over three decades of experience in software engineering, AI, and developer platforms, including leadership roles with GitHub and the integration of AI through GitHub Copilot. Elastic CEO Ash Kulkarni highlighted her expertise as invaluable as the company positions itself as a critical context layer for AI applications. Separately, Caryn Marooney will not stand for re-appointment as a non-executive director after her term expires in October 2026. Liuson also serves on the boards of Cadence Design Systems and Wanderboat.AI, and is a board observer at Schneider Electric SE.

In late July 2026, Elastic N.V. announced an expanded collaboration with OpenAI Inc., sending its shares up 12.1%. The partnership positions Elastic as the retrieval and governance layer for OpenAI's reasoning models, connecting them with Elasticsearch to enable permission-aware context, lower token costs, and agentic security operations that can incorporate GPT-5.5 Cyber models directly into Elastic Security workflows. The deal aims to support production-ready, enterprise AI applications grounded in governed data across search, security, and observability. Elastic's narrative projects $2.6 billion in revenue and $120.3 million in earnings by 2029, assuming 14.7% yearly revenue growth and an earnings decline of about $247.5 million from $367.8 million today. Some analysts already expected Elastic to reach about $2.8 billion in revenue and $160.8 million in earnings, and this collaboration could reinforce or challenge those upbeat views.

Elastic Security earned the only 100% malware protection score among 16 security vendors in the AV-Comparatives 2026 Business Security Test covering the March to June 2026 test period. It blocked all 1,000 malware samples in the Malware Protection Test, the only vendor to do so, and stopped 399 of 400 threats in the Real-World Protection Test, tying with Kaspersky and Bitdefender for the highest score of 99.8%. Both results were achieved with zero false alarms on common business software, meeting the accuracy threshold required for certification. The company also received the AV-Comparatives Approved Business Product Award. Elastic Security unifies endpoint protection, SIEM, investigation, response, and automation on a single platform, with its native Elastic Defend layer powering the tested capabilities.

Elastic announced new observability capabilities in late June 2026 that unify metrics and logs on its Elasticsearch-based platform, adding native Prometheus and PromQL support, Kubernetes investigation workflows, and automated migration tools from Datadog and Grafana. The launch positions its columnar metrics engine as a single backend for logs, metrics, and traces, aiming to simplify operations for Site Reliability Engineering teams. The investment narrative projects $2.6 billion revenue and $120.3 million earnings by 2029, requiring 14.7% yearly revenue growth and an earnings decrease of $247.5 million from $367.8 million today. Analysts had already forecast about 17.7% annual revenue growth to roughly $2.8 billion but warned that heavier AI and observability investment could squeeze margins. The simultaneous addition of Elastic to several Russell value indices in late June 2026 raises its visibility with institutional investors, potentially reinforcing the platform consolidation catalyst.

Shares of Elastic, Toast, and Nutanix rose in afternoon trading after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. Elastic gained 2.6%, Toast jumped 3.7%, and Nutanix climbed 3.6%. The de-escalation reduced oil prices and inflation concerns, lowering the odds of a Federal Reserve rate hike and benefiting high-growth software stocks. The rally also built on a chip-to-software rotation triggered by a report that OpenAI may delay its IPO, which softened fears that AI labs would quickly disrupt incumbent software companies.

Elastic has been named a Leader in the IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment. The report highlights Elastic Security's unified log ingestion, transparent AI reasoning, and native EDR and automation in a single subscription. Elastic Common Schema and the underlying Elasticsearch engine allow customers to query security and operational data using one language, with customers reporting scaling log ingestion volumes by five times without re-architecting. The platform operates with feature parity across self-managed, hosted, serverless, and disconnected deployments, and supports federated cross-cluster search for data sovereignty requirements. Elastic Defend ships in the enterprise subscription with no per-endpoint fee, and Elastic Workflows provides native automation, removing the need for a separate SOAR for many use cases.