Elastic reported strong forward demand indicators during its fiscal first quarter of 2027, with remaining performance obligations growing considerably faster than revenue and additions to its largest customer cohort reaching a record level.
Total revenue increased 15% year-over-year to $478 million.
Subscription revenue also increased 15% to $449 million.
Sales-led subscription revenue, which Elastic calculates by excluding Monthly Elastic Cloud, increased 18% to $399 million, or 17% on a constant-currency basis.
The company’s contracted-revenue indicators grew significantly faster than recognized revenue.
Current remaining performance obligations increased 21% year-over-year to $1.153 billion, or 20% in constant currency.
Total remaining performance obligations increased 27% to $1.854 billion.
That creates a notable difference between 15% current revenue growth and 27% RPO growth, indicating that contracted future business is expanding at a faster rate than currently recognized sales.
Elastic also reported particularly strong momentum among larger customers.
The number of customers with annual contract value exceeding $100,000 reached more than 1,800.
That compares with more than 1,720 at the end of fiscal Q4 2026 and more than 1,550 in fiscal Q1 2026.
The quarterly net additions to Elastic’s $100,000-plus ACV cohort were the highest in company history.
Net expansion rate was approximately 111%.
Cash generation was another positive component of the quarter.
Operating cash flow reached $132 million, while adjusted free cash flow totaled $143 million.
Elastic ended July with approximately $1.461 billion of cash, cash equivalents and marketable securities.
The company generated $77 million of non-GAAP operating income, representing a non-GAAP operating margin of 16.2%.
Non-GAAP diluted EPS reached $0.70.
Elastic remained unprofitable under GAAP, with a $24 million operating loss, equivalent to a negative 5% operating margin, and a GAAP net loss of $0.16 per share.
The company is increasingly positioning Elasticsearch at the intersection of search, AI, observability and cybersecurity.
Elastic introduced native Prometheus and PromQL support, agentic Kubernetes investigation capabilities and MCP-based observability skills capable of analyzing logs, metrics, anomalies and cluster events.
The company also introduced AI-driven alert triage and attack investigation through Alert Zero for security operations.
Elastic separately announced a collaboration with OpenAI designed to bring advanced reasoning models together with governed enterprise context in Elasticsearch across AI applications, security operations and observability.
The combination of record large-customer additions and 27% RPO growth is particularly noteworthy because it provides evidence that enterprise adoption is strengthening even as Elastic continues investing in new AI capabilities.
The quarter therefore gives Elastic increased revenue visibility while creating additional opportunities to expand existing customers across Search & AI, Security and Observability.
KEY QUOTES:
“Elastic delivered a strong start to fiscal 2027, beating our guidance across all key metrics.”
“AI is reshaping the enterprise technology stack, and organizations are making deliberate choices about where to build and how to observe and secure their applications and data.”
“Our record quarter-over-quarter net customer additions to our \>$100K ACV cohort and continued strength in cRPO and RPO growth reflect the durability of that demand.”
“We enter the year with growing momentum across Search & AI, Security, and Observability and confidence in the trajectory of our business.”
Ash Kulkarni, Chief Executive Officer of Elastic
