Elastic (ESTC) delivered solid fiscal Q4 results with broad-based beats, setting up improving momentum and potential revenue acceleration into fiscal 2027, RBC Capital Markets said in a note Friday.

The analysts said the company ended the fiscal year strong, with revenue, billings, margins, and cash flow all ahead of expectations, though Elastic Cloud was slightly softer. Current remaining performance obligations, or cRPO, rose 20% year-over-year to $1.2 billion, while RPO grew to $1.98 billion, marking its strongest growth in four years.

The analysts added that Q4 cRPO shows strong backlog growth, supporting management's confidence in fiscal 2027, with revenue expected to reaccelerate quarter-over-quarter, starting slow in Q1 and peaking in Q4.

"Overall, we feel that cRPO momentum, continued sales execution, and larger multi-year commitments create a good setup for revenue acceleration through [fiscal 2027]," the analysts said.

RBC is maintaining its outperform rating and $70 price target on Elastic.

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