Shares of Elastic N.V. (ESTC) are experiencing a significant pre-market plunge of 10.09% on Friday, continuing the downward trend that began in after-hours trading on Thursday. The sharp decline comes in the wake of the company's fourth-quarter fiscal year 2025 earnings report, which presented a mixed picture to investors.

Despite reporting better-than-expected Q4 results, with non-GAAP earnings of $0.47 per share beating the analyst consensus of $0.37 and revenue of $388.4 million surpassing estimates, Elastic's stock is under pressure due to disappointing full-year revenue guidance. The company projects full-year revenue between $1.655 billion and $1.67 billion, falling short of the $1.678 billion analysts were expecting. This softer-than-anticipated outlook has overshadowed the strong Q4 performance and appears to be the primary driver of the stock's decline.

Adding to the downward pressure, several analysts have cut their price targets for Elastic following the earnings report. Notable reductions include Wells Fargo lowering its target from $150 to $120, Scotiabank cutting from $137 to $95, and TD Cowen reducing from $105 to $90. These downgrades reflect growing concerns about Elastic's long-term growth prospects despite its current leadership in search AI and role in generative AI applications. As the market digests this information, investors will be closely watching how Elastic addresses these concerns and works to realign with market expectations in the coming quarters.