Elastic: Can Agent Builder Unlock a New Monetization Engine Beyond RAG?

Elastic N.V. delivered robust results in its second quarter of fiscal 2026, driven by strong growth across the board, particularly in the context of the increasing importance of AI in data management. The company reported a 16% increase in total revenue, reaching $423 million. Its sales-led subscription revenue grew by 18%, reflecting sustained demand for Elastic’s offerings, especially in cloud and self-managed products. This growth was accompanied by a non-GAAP operating margin of 16.5%, showcasing Elastic’s ability to balance growth with operational efficiency. Elastic’s quarterly performance highlights its strategic advantages in addressing the burgeoning needs of businesses dealing with structured and unstructured data, especially as enterprises expand their use of artificial intelligence. The company is experiencing significant traction in AI and data solutions, securing over 30 large commitments exceeding $1 million in annual contract value, including five contracts over $10 million.