Shares of Elastic N.V. (ESTC) surged 14.68% in pre-market trading on Friday, February 28th, 2025, as the company reported impressive fiscal third-quarter 2025 results and raised its full-year guidance, fueling investor optimism about its growth prospects.

Elastic, a leading provider of search and data analytics solutions, posted strong financial results for the quarter ended January 31st. Total revenue climbed 16.5% year-over-year to $382.1 million, surpassing analysts' expectations of $368.7 million. The company's cloud revenue grew at an impressive 26% year-over-year, reaching $180 million, driven by robust demand for its innovative solutions.

Notably, Elastic reported non-GAAP earnings per share of $0.63, significantly higher than the consensus estimate of $0.47. The company's solid execution and strong momentum in its generative AI applications, which saw over 1,750 Elastic Cloud customers using these solutions, contributed to the stellar performance.

Looking ahead, Elastic raised its guidance for the full fiscal year 2025, reflecting continued confidence in its growth trajectory. The company now expects revenue between $1.474 billion and $1.476 billion, representing a 16% year-over-year increase at the midpoint and exceeding analysts' projections.

Several analysts reacted positively to Elastic's results, reiterating "Buy" ratings and raising their price targets on the stock. They cited the company's strong financial performance, solid sales execution, and the growing demand for its generative AI solutions as key drivers for the optimistic outlook.