TD Cowen Updates Elastic N.V. (ESTC) Financial Model on Anticipated Performance

Elastic N.V. (NYSE:ESTC) is among the 10 Fastest Growing Mid Cap Stocks to Buy Now.

Elastic N.V. (NYSE:ESTC) is one of the fastest growing stocks.

TheFly reported on February 23 that TD Cowen reduced its price target on ESTC to $70 from $85 while reiterating a Hold rating. In anticipation of performance above expectations and increased projections, the firm modified its financial model before the third-quarter results. The firm cited mixed channel checks before the earnings announcement and also highlighted a balanced risk profile.

More recently, Elastic N.V. (NYSE:ESTC) revised its full-year guidance for fiscal 2026 on February 26, 2026, estimating non-GAAP diluted EPS to be between $2.50 and $2.54. The business anticipates strong year-over-year growth with total revenue of around $1.734–$1.736 billion and sales-led subscription revenue of approximately $1.434–$1.436 billion. A non-GAAP operating margin of about 16.3% is another expectation ESTC has, based on an estimated 107–108 million fully diluted shares. This guidance follows a third-quarter performance that exceeded prior expectations, driven by increased customer adoption of its unified Search AI platform and continued expansion in enterprise AI use cases.

Elastic N.V. (NYSE:ESTC) develops search, observability, and security solutions through its Elastic Stack platform. Its products help organizations search, analyze, and visualize data in real time, supporting use cases in enterprise search, logging, security, and analytics across industries worldwide.

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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