It's been a great week for software-and another stock looked set to join the party on Friday following an earnings beat and guidance hike.

Shares of Elastic jumped 22% to $101.95 ahead of the opening bell. Futures tracking the S&P 500 were 0.1% lower as a recent AI rebound fizzled out.

Elastic, which runs a platform that lets apps, websites, and businesses search through massive data sets, reported adjusted earnings of 70 cents a share for its fiscal first quarter, as revenue climbed 15% from a year ago to $478 million.

Analysts polled by FactSet were looking for earnings of 58 cents a share on revenue of $470 million.

Elastic also raised its guidance. The company expects earnings of 8o to 82 cents a share for the current fiscal year. In May, it forecast full-year earnings of 57 to 59 cents.

The strong results could help extend a recent good run for software stocks. Salesforce, Okta, CrowdStrike, and Workday also beat Wall Street's targets this week, easing some fears about AI disruption for a sector that took a battering at the start of 2026 but has since rebounded.

The question for investors is how much longer Elastic's gains will last. Shares were already up 11% for the year through Thursday's close.

Cantor analyst Thomas Blakey said the results show the AI boom has driven up demand for Elastic's search and security tools, but added that he would "await a clearer path to sustained acceleration before...becoming more constructive."

Blakey raised his price target to $100 from $91 but continued to rate shares Neutral.