Shares of Elastic N.V. (ESTC) and SentinelOne, Inc. (S) rallied after the companies delivered better-than-expected quarterly results, offering a positive signal for software names despite some mixed forward guidance.
Elastic jumped 22% to $101.95 in pre-market trading on Friday after its fiscal Q1 earnings exceeded estimates. Adjusted EPS was $0.70, well above the $0.58 consensus, while revenue rose 15% year-over-year to $478 million, ahead of the $470 million estimate. The company lifted its full-year adjusted EPS outlook to $3.29–$3.37, above the $3.24 consensus, and guided full-year revenue to $2.00–$2.01 billion. For Q2, Elastic expects revenue of $486–$487 million and adjusted EPS of $0.80–$0.82. Current remaining performance obligations increased 21% year-over-year to $1.153 billion, and total RPO rose 27% to $1.854 billion. Elastic added more than 80 customers with annual contract values above $100,000, bringing the total to over 1,800. Cantor analyst Thomas Blakey raised his price target to $100 from $91 but maintained a Neutral rating, saying AI demand is driving search and security tool adoption, though he awaits a clearer path to sustained acceleration.
SentinelOne initially fell 4% in premarket trading after reporting Q2 fiscal 2027 results, but later recovered to trade up more than 10%. Revenue climbed 21% year-over-year to $292 million, beating the $290.15 million estimate, while non-GAAP EPS of $0.08 exceeded the $0.07 forecast. Annual recurring revenue grew 22% to $1.218 billion, with $56 million in net new ARR. Non-GAAP operating margin improved to 10% from 2% a year earlier. However, full-year non-GAAP EPS guidance of $0.30–$0.32 came in below the $0.35 consensus, and Q3 EPS guidance of $0.08–$0.09 also missed the $0.11 estimate. SentinelOne does not report current remaining performance obligations or provide ARR guidance, which J.P. Morgan’s Brian Essex cited as a reason for limited visibility. UBS raised its price target to $24 from $16, Citizens to $25 from $23, and Baird reiterated a $25 target. Management highlighted that non-endpoint products, including cloud, data, and AI security, now account for more than 50% of total ARR.
Although these are traditional software stocks rather than cryptocurrency assets, the results may indirectly influence broader risk sentiment in technology and growth equities, which often trade alongside crypto markets.
