Elastic NV

In late July 2026, Elastic N.V. announced an expanded collaboration with OpenAI Inc., sending its shares up 12.1%. The partnership positions Elastic as the retrieval and governance layer for OpenAI's reasoning models, connecting them with Elasticsearch to enable permission-aware context, lower token costs, and agentic security operations that can incorporate GPT-5.5 Cyber models directly into Elastic Security workflows. The deal aims to support production-ready, enterprise AI applications grounded in governed data across search, security, and observability. Elastic's narrative projects $2.6 billion in revenue and $120.3 million in earnings by 2029, assuming 14.7% yearly revenue growth and an earnings decline of about $247.5 million from $367.8 million today. Some analysts already expected Elastic to reach about $2.8 billion in revenue and $160.8 million in earnings, and this collaboration could reinforce or challenge those upbeat views.

Elastic Security earned the only 100% malware protection score among 16 security vendors in the AV-Comparatives 2026 Business Security Test covering the March to June 2026 test period. It blocked all 1,000 malware samples in the Malware Protection Test, the only vendor to do so, and stopped 399 of 400 threats in the Real-World Protection Test, tying with Kaspersky and Bitdefender for the highest score of 99.8%. Both results were achieved with zero false alarms on common business software, meeting the accuracy threshold required for certification. The company also received the AV-Comparatives Approved Business Product Award. Elastic Security unifies endpoint protection, SIEM, investigation, response, and automation on a single platform, with its native Elastic Defend layer powering the tested capabilities.

Elastic announced new observability capabilities in late June 2026 that unify metrics and logs on its Elasticsearch-based platform, adding native Prometheus and PromQL support, Kubernetes investigation workflows, and automated migration tools from Datadog and Grafana. The launch positions its columnar metrics engine as a single backend for logs, metrics, and traces, aiming to simplify operations for Site Reliability Engineering teams. The investment narrative projects $2.6 billion revenue and $120.3 million earnings by 2029, requiring 14.7% yearly revenue growth and an earnings decrease of $247.5 million from $367.8 million today. Analysts had already forecast about 17.7% annual revenue growth to roughly $2.8 billion but warned that heavier AI and observability investment could squeeze margins. The simultaneous addition of Elastic to several Russell value indices in late June 2026 raises its visibility with institutional investors, potentially reinforcing the platform consolidation catalyst.

Shares of Elastic, Toast, and Nutanix rose in afternoon trading after the United States and Iran agreed to halt military exchanges, easing fears of a wider Middle East conflict. Elastic gained 2.6%, Toast jumped 3.7%, and Nutanix climbed 3.6%. The de-escalation reduced oil prices and inflation concerns, lowering the odds of a Federal Reserve rate hike and benefiting high-growth software stocks. The rally also built on a chip-to-software rotation triggered by a report that OpenAI may delay its IPO, which softened fears that AI labs would quickly disrupt incumbent software companies.

Elastic has been named a Leader in the IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment. The report highlights Elastic Security's unified log ingestion, transparent AI reasoning, and native EDR and automation in a single subscription. Elastic Common Schema and the underlying Elasticsearch engine allow customers to query security and operational data using one language, with customers reporting scaling log ingestion volumes by five times without re-architecting. The platform operates with feature parity across self-managed, hosted, serverless, and disconnected deployments, and supports federated cross-cluster search for data sovereignty requirements. Elastic Defend ships in the enterprise subscription with no per-endpoint fee, and Elastic Workflows provides native automation, removing the need for a separate SOAR for many use cases.