Elastic (ESTC) reported a fiscal Q4 beat driven by artificial intelligence use cases, cloud and platform adoption, though its fiscal Q1 2027 margin and EPS guidance came in below consensus expectations, Wedbush said in a Friday note.

The firm said total revenue rose 16% year over year to $450.7 million, ahead of both Street estimates and the company's guidance range. Subscription revenue increased 17% and cloud revenue rose 20%, while the number of customers spending more than $100,000 in annual contract value rose to more than 1,720.

Wedbush said the company continues to gain traction with larger, longer-term customers, including in public sector deployments, and noted that more than 600 customers are now using Elastic for GenAI use cases.

Fiscal Q1 2027 guidance was weaker than expected on margin and EPS, as the company adds sales capacity and continues to invest in AI, while full-year fiscal 2027 revenue, operating margin and EPS guidance were above Street estimates, the firm noted.

Wedbush maintained its outperform rating on Elastic and lowered its price target to $65 from $74.

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