Bullish Analyst Sentiment on Elastic N.V. (ESTC) Holds Despite Softer Net-New Cloud Momentum

Elastic N.V. (NYSE:ESTC) is included in our list of the 12 oversold global stocks to invest in.

As of November 27, Elastic N.V. (NYSE:ESTC) is a strong Buy with 70% analysts covering it having a Buy or equivalent rating. With a consensus 1-year average price target of $106.22, the stock has a 51.87% upside potential.

The Fly reported on November 24, 2025, that Goldman Sachs reduced its price target on Elastic N.V. (NYSE:ESTC) from $100 to $77, reiterating a “Neutral” rating. In after-hours trading, the company’s share price declined 12%, which the investment firm sees as investors’ reaction to a softer-than-expected quarterly top-line beat and a 15% decline in net new cloud revenue.

Meanwhile, Elastic N.V. (NYSE:ESTC) reported fiscal Q2 2026 results on November 20, 2025. The quarter saw revenue climb 16% YoY to $423 million and non-GAAP diluted EPS reach $0.64. Revenue growth was driven by 17% YoY growth in subscription revenue to $398 million, led by 22% YoY Elastic Cloud growth.

Elastic N.V. (NYSE:ESTC)’s management cited expanding adoption of its Search AI capabilities, new product launches (Agent Builder and Elastic Inference Service), and continued leadership recognition as key growth drivers for the performance. Surpassing top competitors, the company achieved 99.3% effectiveness across both Active Response and Passive Response in AV-Comparatives Endpoint Prevention and Response (EPR) Test 2025.

With its Search AI Platform, Elastic N.V. (NYSE:ESTC) enables organizations worldwide, including thousands of enterprises and Fortune 500 companies, to transform data into actionable insights by delivering search, observability, and security solutions.

While we acknowledge the potential of ESTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.