Shares of Elastic N.V. (ESTC) plummeted 11.07% in after-hours trading on Thursday, despite reporting better-than-expected fourth-quarter earnings for fiscal year 2025. The sharp decline appears to be 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 growth from $335 million in the same period last year.

However, investors seemed to focus on the company's outlook. While Elastic's Q1 fiscal 2026 guidance of $0.41 to $0.43 EPS on revenue between $396 million and $398 million aligns with analyst expectations, the full-year projection raised concerns. The company forecasts full-year EPS of $2.24 to $2.32 on revenue of $1.655 billion to $1.67 billion, with the revenue guidance 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.