ESTC Announces ~7% RIF; Departure of Chief Product Officer

Research evidence excerpt

ESTC Announces ~7% RIF; Departure of Chief Product Officer

Update

June 25, 2026 04:13 AM GMT

Morgan Stanley & Co. LLCMElastic NV | North America Sanjit K Singh

Equity Analyst

ESTC Announces ~7% RIF; Sanjit.Singh@morganstanley.comJamie Reynolds +1 415 576-2060

Research Associate

Jamie.Reynolds@morganstanley.com +1 212 761-2087

Departure of Chief Product

Elastic NV (ESTC.N, ESTC US)

Software | United States of AmericaOfficer

Stock Rating Overweight

Industry View Attractive

Price target $73.00

Key Takeaways Shr price, close (Jun 23, 2026) $58.98

Mkt cap, curr (mm) $18,098

After the close, ESTC announced a) a ~7% RIF, and b) the departure of its Chief 52-Week Range $96.00-42.07

Product Officer

The filing did not include any discussion of, or reaffirmation of, existing 1Q27/

FY27 guidance provided with 4Q26 earnings

Net, announcements make us less confident in ESTC's ability to sustain and

accelerate growth in the near to medium term

Leadership Turnover and Organizational Restructuring Introduce Execution Risk.

After the close, ESTC a) announced a 7% RIF (implying ~280 employees), and b) the

departure of its Chief Product Officer, Ken Exner. In the announcement, ESTC did

not provide any re-affirmation/commentary on its current 1Q27/FY27 outlook,

provided during 4Q26 earnings. Earlier in the week, it was also announced that

Global Vice President of Finance, Eric Prengel, was appointed CFO of PagerDuty

(effective 6/22). The announcements this week come in the context of a mixed

4Q26, which saw strength in bookings offset by decelerating growth, and an FY27

outlook that contemplates acceleration through the year. While Elastic had

suggested potential for organizational re-alignment due to AI, as well as

expectations for net growth in headcount and continued investment in sales