Elastic (ESTC) sees a broad-based demand across cloud and self-managed environments, while noting stabilization in its public sector business, Wedbush said in a Friday note, eyeing the company's fiscal Q1 results.

On Thursday, Elastic reported its fiscal Q1 earnings that exceeded analysts' expectations. The company raised its fiscal 2026 guidance and now expects adjusted EPS of $2.29 to $2.35 on revenue of $1.68 billion to $1.69 billion.

Wedbush said that Elastic is still in the "early innings of its long-term growth story" with the company strategically investing to capture a larger share of the artificial intelligence market.

The firm maintained its outperform rating with a $110 price target.