Shares of Elastic N.V. (ESTC) plummeted 12.09% in after-hours trading on Thursday, despite reporting better-than-expected fourth-quarter earnings for fiscal year 2025. The sharp decline appears to be primarily driven by the company's disappointing full-year revenue guidance, which fell short of analyst expectations.

Elastic reported non-GAAP earnings of $0.47 per diluted share for the fiscal fourth quarter, significantly surpassing the FactSet analyst consensus of $0.37. Revenue for the quarter ended April 30 came in at $388.4 million, also beating the Street's estimate of $380.4 million and showing robust growth from $335 million in the same period last year. CEO Ash Kulkarni highlighted the company's leadership in search AI, noting that customers are continuing to build generative AI applications and consolidate onto Elastic's platform.

However, investors seemed to focus on the company's outlook, particularly the full-year revenue projection. While Elastic's Q1 fiscal 2026 guidance aligns with analyst expectations, the full-year forecast raised concerns. The company projects full-year revenue of $1.655 billion to $1.67 billion, falling short of the $1.678 billion analysts were expecting. This softer-than-anticipated revenue outlook appears to be the primary factor behind the stock's after-hours plunge, overshadowing the strong Q4 performance and better-than-expected earnings guidance for the full year.