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# Elastic Stock Price Rises Due to Strong Profits and AI Boom Expectations
* Published: February 28, 2025 * 11:35 AM ET
### Crucial Aspects
* Elastic’s Q3 profits exceeded expert forecasts due to sustained growth in the need for AI products.
* Elastic gave positive guidance for the current quarter and full year.
* Elastic’s stock value rose significantly on Friday and has increased by about 15% so far this year.
Shares of the data analytics software provider Elastic (ESTC) increased on Friday after the company announced higher-than-anticipated profits, fueled by considerable demand for artificial intelligence (AI)-related products.
The company reported adjusted earnings per share (EPS) of 63 cents for the fiscal third quarter, surpassing expert estimates compiled by Visible Alpha. Revenue increased by about 17% year-over-year to $382.1 million, also exceeding forecasts.
Elastic attributed the revenue increase to an approximate 3% increase in total subscription customers to roughly 21,300. Customers with an annual contract value exceeding $100,000 grew 15% to 1,460.
“Customer interest in consolidating onto a single platform and building generative AI applications helped drive our strong performance this quarter,” stated CEO Ash Kulkarni in a statement.
The company anticipates current-quarter EPS of 36 cents to 37 cents on revenue of $379 million to $381 million, greater than consensus expert estimates. Its full-year guidance for EPS of $1.91 to $1.96 on revenue of $1.474 billion to $1.476 billion also surpassed expectations.
Elastic’s stock value increased nearly 13% in intraday trading on Friday and has increased by about 15% so far this year.
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