Elastic Powers Ahead: Record Q4 Growth and Strong Customer Commitments
Elastic, a leading platform provider for AI, search, observability, and security, has released its fourth quarter fiscal 2026 earnings results, showcasing a strong finish to the year. In a conference call with investors and analysts, Ashutosh Kulkarni, Chief Executive Officer, and Navam Welihinda, Chief Financial Officer, highlighted key highlights from the quarter.
The company reported a record 16% total revenue growth in Q4, beating guidance across every key metric. This marks the seventh consecutive quarter of disciplined field execution, with very strong commitments resulting in CRPO (committed recurring product orders) growth accelerating to 20%. Organizations are increasingly choosing Elastic for their long-term AI transformations and making larger multi-year commitments to standardize on its platform for the future.
The acceleration in Q4 RPO (recurring product orders) growth, which reached over 28%, validates the growing magnitude and momentum of customer commitments. This sets up the company well for the future, with a strong foundation to build upon. In terms of revenue, Elastic achieved a non-GAAP operating margin of 14.8% in Q4, resulting in a full-year revenue growth of 17% and a non-GAAP operating margin of 16.4%.
The sales-led subscription revenue grew 19%, driven by continued demand for the platform across AI, search, observability, and security. Elastic's highest-value customers are leading the shift towards multi-year deals, with a record Q4 for $1 million deals. The company added more than 30 net new customers to its million-dollar-plus ACV (annual contract value) cohort, bringing that total to over 240.
Within this group, the count of customers spending over $5 million with Elastic annually grew 30%. This is highlighted by several marquee wins in security as the company continues to displace legacy vendors. In the public sector, Elastic's partnership with CISA (Cybersecurity and Infrastructure Security Agency) around the Elastic SIEM as a Service is growing, with more civilian agencies switching away from competitive security offerings onto the service powered by Elastic Cloud.
This led to a shift in commitments mix towards Elastic Cloud in Q4, which impacted revenue. However, this shift will be positive for the future as these agencies ramp their usage toward commitment levels. The broader AI cycle is actively driving growth, with customers relying on Elastic not only as a context platform for AI but also to modernize their operations with its AI-driven SOC (security operation center) and SRE (site reliability engineering) for security and observability, respectively.
The company's strong customer commitments and record revenue growth position it well for the future. With a growing count of high-value customers and increasing demand for its platform across various sectors, Elastic is poised to continue its momentum in the coming quarters.
