Elastic Reports Strong Q3 2025 Earnings and Growth Momentum

Elastic's Q3 2025 earnings call showcases impressive performance driven by a 17% increase in total revenue and strong cloud growth of 26%. Investor confidence hinges on solid sales execution and expanded customer engagement.

Date: 28-02-2025

AI Rating: 7

Revenue Growth: In Q3 2025, Elastic reported total revenue growth of 17% year over year, indicating strong demand for its solutions. Furthermore, cloud revenue experienced a robust 26% growth, highlighting the company's successful transition to a cloud-centric model.

Profit Margins: The non-GAAP operating margin for the quarter stood at 16.8%, better than expected due to strong revenue outperformance and disciplined spending. This margin improvement indicates successful management of operational costs alongside revenue growth.

Earnings Per Share (EPS): The diluted earnings per share for Q3 was reported at $0.63. This financial metric reveals profitability and provides an indicator for future performance, positively influencing investor sentiment.

Free Cash Flow (FCF): Adjusted free cash flow was approximately $99 million, reflecting a 26% adjusted free cash flow margin. This positive cash flow provides crucial support for ongoing investments and operational stability.

Overall, the report highlighted Elastic's capacity for continuous market adaptation, fueled by strong product demand, strategically important segments like Generative AI, and ongoing customer consolidation efforts. The positive trajectory in key financial metrics bodes well for future investor confidence.

Stocks: ESTC