Elastic Powers Ahead in Q4 2025: Record-Breaking Growth and Strategic Wins
The Elastic N.V. Fourth Quarter Fiscal 2025 Earnings Results Conference Call has revealed a stellar performance by the company, marking a solid finish to the fiscal year. According to Ashutosh Kulkarni, Chief Executive Officer, Elastic delivered strong growth, fueled by its sales execution and the persistent demand for its solutions and innovation velocity.
Notably, revenue grew 16% in Q4, with Elastic Cloud revenue increasing by a substantial 23%. Additionally, the company achieved a non-GAAP operating margin of 15%, demonstrating its platform strength and the extraordinary efforts of its team. At the end of FY '25, more than 1,510 customers were spending over $100,000 with Elastic.
Kulkarni highlighted the company's continued success in landing and expanding enterprise and high-potential mid-market customers. This strategy has led to a significant increase in customers committing over $1 million annually, with more additions to this cohort than ever before. The sales segmentation changes implemented at the start of the fiscal year have started to pay off, resulting in progress in enterprise and commercial accounts.
One notable example cited by Kulkarni was an 8-figure expansion deal with a global financial institution for Elastic Observability. This deal involved displacing a competitor, leveraging Elastic's real-time alerting and monitoring features to provide deeper insights into system performance. Furthermore, it led to an expansion of Elasticsearch for GenAI applications as part of an internal efficiency initiative.
GenAI and Consolidation remain powerful drivers, accelerating Elastic's momentum and influencing customers and prospects to choose the company for their search, observability, and security needs. As enterprises scrutinize their solution investments, looking to control costs and prioritize expenditures that drive productivity and ROI at scale, leveraging AI to automate business processes and drive innovation and efficiency is a big priority.
Elastic provides mission-critical technology able to flex to data complexities and accommodate diverse use cases for every industry. The company's recent success demonstrates its ability to deliver strong growth, driven by its sales execution and the persistent demand for its solutions and innovation velocity.
