Elastic NV reported its fiscal fourth-quarter 2025 results with revenue rising 16% year-over-year to $388 million, driven by a 23% increase in Elastic Cloud revenue to $182 million. Subscription revenue grew 16% as reported and 17% in constant currency, reaching $362 million. The company posted a non-GAAP operating margin of 15% and free cash flow of $85 million, representing a 22% margin. Elastic added more than 1,510 customers with annual contract values exceeding $100,000, although overall customer growth was only 2%. The net expansion rate stood at approximately 112%. For the full fiscal year 2025, Elastic generated $1.48 billion in revenue, up 17%, with cloud revenue growing 26% to $688 million. Despite these strong earnings, the company’s guidance for fiscal year 2026 projects revenue growth of 12%, which was viewed as cautious by the market, leading to a nearly 11% drop in after-hours trading. Operating margin guidance for FY2026 is 16%, with first-quarter revenue expected to grow 14% year-over-year and an operating margin of 11.5%. Market commentary highlighted the company’s ongoing efforts to leverage AI and the Department of Government Efficiency (DOGE) initiatives as potential growth drivers that the market may be underestimating.