Elastic NV Surges on $500M Buyback, AI Acquisition, and GPU-Powered Service Launch

Elastic Shares Surge 8% After Hours On Jina AI Acquisition, New Inference Service Launch, $500 Million Buyback - Elastic (NYSE:ESTC)

Elastic NV (NYSE:ESTC) saw its stock surge by 8% during after-hours trading on Thursday, rising to $88.07 from its earlier close of $81.55. Check out the current price of ESTC stock here. The boost came after the company announced three major updates: it finalized the acquisition of Jina AI, rolled out a new GPU-powered inference service, and approved a $500 million stock buyback program. According to Benzinga Pro data, ESTC had declined 1.98% during regular trading hours. Jina AI Acquisition Completed The data analytics company has wrapped up its purchase of Jina AI, a company known for breaking new ground in open-source tools that handle multiple types of data and languages. Jina AI specializes in technologies like embeddings, rerankers, and small language models. The acquisition strengthens Elastic's capabilities in vector search, retrieval-augmented generation (RAG), and context engineering for agentic AI. It brings in dense vector models for text and image processing, enhances Elastic's ELSER model, and adds advanced rerankers for visual and multilingual content, along with compact language models for grounding tasks. See Also: Levi Strauss Stock Slips Despite Q3 Earnings Beat "Search is the foundation of generative AI," said Ash Kulkarni, CEO of Elastic. Han Xiao, former Jina AI CEO, joined as vice-president of AI at Elastic. GPU-Accelerated Inference Service Debuts The Netherlands-based company also introduced the Elastic Inference Service (EIS), which uses NVIDIA (NASDAQ:NVDA) graphics processing units (GPUs) to deliver up to 10x faster data processing than CPU-based options. The first model available in technical preview is ELSER, with Jina models expected to follow soon. Steve Kearns, General Manager of Search at Elastic, said, "The Elastic Inference Service meets that challenge by providing our customers with an API-based inference service using NVIDIA GPUs." EIS offers consumption-based pricing per million tokens and is available on Serverless and Elastic Cloud Hosted deployments. $500 Million Buyback Authorized The board also approved a share repurchase program of up to $500 million with no set expiration date. Navam Welihinda, CFO of Elastic, said, "Our share repurchase program reflects the Board and management team's confidence in the strength of Elastic's business." Stock Performance Over the past year, Elastic's stock is up 2.10%, though it's down 17.69% so far in 2025. The share price has ranged between $70.15 and $118.84, with a market capitalization of $8.67 billion and an average daily trading volume of about 2.12 million shares. Benzinga Edge Stock Rankings indicate that ESTC has a negative price trend across all time frames. Track the performance of other players in this segment. Read Next: Space Stock Tracker: RocketLab Hits New Highs, AST Partners With Verizon Photo courtesy: Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. ESTCElastic NV$88.075.85%OverviewNVDANVIDIA Corp$192.902.00%Market News and Data brought to you by Benzinga APIs

Elastic stock surges after announcing $500 million share repurchase program By Investing.com

Investing.com -- Elastic NV (NYSE:ESTC) stock surged 10.8% in after-hours trading Thursday after the Search AI Company announced a $500 million share repurchase program and launched a new GPU-accelerated inference service. The company's board of directors approved the share buyback program with no expiration date, allowing Elastic to repurchase its outstanding ordinary shares from time to time. The timing and amount of shares to be repurchased will depend on share price, business conditions, and other factors. "Our share repurchase program reflects the Board and management team's confidence in the strength of Elastic's business, strategy and execution," said Navam Welihinda, Chief Financial Officer of Elastic. The company emphasized its disciplined capital allocation approach and strong balance sheet position. Earlier in the day, Elastic also announced the launch of its Elastic Inference Service, a GPU-accelerated inference platform integrated into its Elastic Cloud offering. The new service, which utilizes NVIDIA GPUs, is designed for semantic search, vector search, and generative AI applications. The platform provides inference capabilities directly within Elasticsearch and features Elastic's built-in sparse vector model, Elastic Learned Sparse EncodeR (ELSER), as the first text-embedding model available in technical preview. The inference service operates on consumption-based pricing, charging per model per million tokens. According to the company, the GPU-accelerated system delivers up to 10x higher throughput for data ingestion compared to CPU-based alternatives. Elastic plans to add additional models for multilingual embeddings and reranking to the service, including models from its recent Jina acquisition in future updates. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.