Elastic's (ESTC) fiscal Q4 results beat will be overshadowed by lower-than-expected revenue guidance for fiscal year 2026, Wedbush said in a report Friday.

"The company provided relatively conservative FY26 revenue guidance as ESTC navigates a harsh macro environment," Wedbush analysts, including Daniel Ives, said.

They pointed to pressure within the US public sector while also investing to balance growth and profitability.

"While this quarter was a speed bump on the path to profitable growth, we believe that ESTC is in the early innings of its long-term growth story," the analysts said.

Wedbush maintained its outperform rating, while reducing its price target to $110 from $135.

Shares of Elastic were down more than 10% in recent trading.

Price: 80.25, Change: -11.78, Percent Change: -12.80