Elastic (ESTC) is expected to show "solid" fiscal Q3 results reflecting steady commitments and strong Cloud growth, supported by artificial intelligence tailwinds, Oppenheimer said in a Friday note.

Fiscal Q3 growth is expected to accelerate to 18%-19% year-on-year compared to 15.9% in fiscal Q2, leading to a 3% to 4% upside to Wall Street estimates, Oppenheimer said.

Increasing AI tailwinds are likely in 2026 as enterprise production ramps up, with metrics to watch in Q3 including AI impact on deals greater than $100k and customer count, according to the note.

Additionally, investors will also focus on the company's Cloud segment to judge Elastic's growth profile. Oppenheimer said it is modelling Cloud ex-monthly growth, 29.3% in fiscal Q2, to stabilize in H2 of fiscal 2027 to high-teens level, with fiscal 2028 reacceleration estimated at low-20% level.

Elastic is scheduled to report its fiscal Q3 results on Thursday.

The firm maintained its outperform rating on Elastic with a $100 price target.

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