Elastic (ESTC) is positioned for further upside in fiscal 2027 after its fiscal Q1 beat and raise, Oppenheimer said in a Thursday note.

The company reported fiscal Q1 non-GAAP earnings of $0.70 per diluted share, up from $0.60 a year earlier, as revenue increased to $478.1 million from $415.3 million. For fiscal 2027, Elastic raised its guidance to $3.29 to $3.37 in non-GAAP EPS on revenue of $1.998 billion to $2.01 billion.

Apart from strong product demand, Elastic continues to see momentum in large deals, growing artificial intelligence adoption and improving sales productivity, the brokerage said. Further growth catalysts include its robust product pipeline and multi-product opportunities, among others, Oppenheimer added.

Contribution from artificial intelligence, meanwhile, remains in early stages but customer traction is growing as enterprise and government agencies show increasing interest in AI operational sovereignty, the brokerage noted.

Oppenheimer raised its price target on Elastic to $118 from $100, with an outperform rating.

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