Shares of search software company Elastic (NYSE:ESTC)
fell 12.5% in the afternoon session after the company reported weak first quarter (fiscal Q4) results: its full-year revenue guidance slightly missed and its revenue guidance for next year suggested a slowdown in demand. The company projected just 12% revenue growth for fiscal 2026, compared to the 17% growth in the previous year.
Quarterly adjusted earnings per share of $0.47 and revenue of $388.43 million exceeded the consensus estimates of $0.37 and $380.42 million, respectively.
Search software company Elastic (NYSE:ESTC) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 16% year on year to $388.4 million. The company expects next quarter’s revenue to be around $397 million, close to analysts’ estimates. Its non-GAAP profit of $0.47 per share was 25.9% above analysts’ consensus estimates.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling the industry have also tempered losses for SaaS stocks over the past six months
as their 2.8% drawdown was relatively better than the S&P 500’s 5.9% decline.
Shares of search software company Elastic (NYSE:ESTC)
jumped 6.3% in the afternoon session after stocks extended their rebound, led by strong gains in the technology sector, as renewed optimism surrounding U.S.–China trade negotiations lifted market sentiment.
Elastic currently trades at $77 per share and has shown little upside over the past six months, posting a small loss of 3%. However, the stock is beating the S&P 500’s 11% decline during that period.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Teradata (NYSE:TDC) and its peers.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the data infrastructure industry, including Elastic (NYSE:ESTC) and its peers.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
