Amova Asset Management Americas Inc. lifted its stake in shares of GitLab Inc. (NASDAQ:GTLB – Free Report) by 5.0% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 535,833 shares of the company’s stock after purchasing an additional 25,473 shares during the period. Amova Asset Management Americas Inc. owned 0.32% of GitLab worth $11,585,000 as of its most recent SEC filing.
A number of other large investors have also made changes to their positions in the stock. Parallel Advisors LLC grew its holdings in shares of GitLab by 51.1% in the first quarter. Parallel Advisors LLC now owns 5,458 shares of the company’s stock valued at $118,000 after purchasing an additional 1,846 shares during the period. California Public Employees Retirement System raised its stake in GitLab by 3.2% during the first quarter. California Public Employees Retirement System now owns 200,216 shares of the company’s stock worth $4,333,000 after purchasing an additional 6,119 shares during the period. Watershed Asset Management L.L.C. raised its stake in GitLab by 18.5% during the first quarter. Watershed Asset Management L.L.C. now owns 64,000 shares of the company’s stock worth $1,385,000 after purchasing an additional 10,000 shares during the period. Assetmark Inc. boosted its holdings in GitLab by 7.8% in the 1st quarter. Assetmark Inc. now owns 39,646 shares of the company’s stock valued at $858,000 after purchasing an additional 2,862 shares during the last quarter. Finally, Fifth Third Bancorp boosted its holdings in GitLab by 220.6% in the 1st quarter. Fifth Third Bancorp now owns 1,603 shares of the company’s stock valued at $35,000 after purchasing an additional 1,103 shares during the last quarter. 95.04% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades GTLB has been the subject of several recent analyst reports. Truist Financial raised their target price on GitLab from $25.00 to $30.00 and gave the stock a “hold” rating in a research note on Thursday, July 9th. Guggenheim reiterated a “neutral” rating on shares of GitLab in a report on Wednesday, June 3rd. UBS Group increased their price target on GitLab from $32.00 to $35.00 and gave the stock a “neutral” rating in a report on Friday, July 10th. Bank of America reissued a “neutral” rating on shares of GitLab in a research report on Wednesday, June 3rd. Finally, William Blair reaffirmed an “underperform” rating on shares of GitLab in a research report on Monday, March 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, seventeen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, GitLab currently has an average rating of “Hold” and a consensus price target of $36.58.
Check Out Our Latest Stock Report on GitLab
Insiders Place Their Bets In other GitLab news, Director Sytse Sijbrandij sold 116,200 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $28.44, for a total transaction of $3,304,728.00. Following the sale, the director owned 14,902,051 shares in the company, valued at $423,814,330.44. This represents a 0.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by company insiders.
GitLab Price Performance NASDAQ GTLB opened at $34.07 on Tuesday. The company has a market cap of $5.75 billion, a P/E ratio of -212.94 and a beta of 0.96. The stock has a 50-day moving average of $29.11 and a two-hundred day moving average of $28.01. GitLab Inc. has a 1-year low of $18.73 and a 1-year high of $52.38.
GitLab (NASDAQ:GTLB – Get Free Report) last announced its earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.03. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. The firm had revenue of $264.16 million for the quarter, compared to the consensus estimate of $254.23 million. During the same period in the prior year, the firm earned $0.17 EPS. The firm’s revenue for the quarter was up 23.2% on a year-over-year basis. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. On average, analysts anticipate that GitLab Inc. will post -0.18 EPS for the current fiscal year.
GitLab Company Profile (Free Report)
GitLab Inc (NASDAQ: GTLB) is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.
The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.
Featured Stories Five stocks we like better than GitLab The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for GitLab Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GitLab and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAmova Asset Management Americas Inc. Has $13.61 Million Stock Holdings in Pinterest, Inc. $PINS
Veteran executive to drive GitLab's ecosystem partnerships, corporate development, legal, and governance strategy
SAN FRANCISCO--(BUSINESS WIRE)--All Remote - GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced the appointment of Thomas Lloyd as Chief Business and Legal Officer. Lloyd will oversee business functions including product and cloud partnerships, corporate development and strategy, as well as legal functions, including serving as the leader of the broader legal and corporate affairs organization and as counsel to GitLab's board of directors.
"As organizations introduce AI into every stage of the software lifecycle, they need partners who can build the right ecosystem, invest in the right strategic opportunities, and govern AI responsibly," said Bill Staples, chief executive officer at GitLab. "Thomas brings the judgment, strategic investment experience, and operational discipline to help us do all three. I'm confident his leadership will help us move faster and deliver even more value as GitLab enters its next phase of growth."
"Thomas' experience across business operations, law, and product and cloud partnerships makes him a strong addition to GitLab's leadership team," said Godfrey Sullivan, board member at GitLab. "The board looks forward to working with him as GitLab strengthens its position as the platform enterprises trust to build and ship software with speed and control."
"GitLab sits at the center of how enterprises build and ship software with AI," said Thomas Lloyd, chief business and legal officer at GitLab. "My focus is on building an ecosystem strategy that keeps pace with our customers, deepening our product and cloud partnerships, and giving our board and broader company the counsel it needs to govern an AI-native company responsibly. I look forward to helping GitLab extend its reach and deliver even more value to our customers and partners."
Lloyd joins GitLab as the company expands its partner ecosystem and platform capabilities to meet growing enterprise demand for agentic software delivery. He brings a deep and diverse array of experience across law, corporate governance, business operations, and product and cloud partnerships. Prior to joining GitLab, Lloyd served as the Chief Business and Operations Officer at New Relic, Inc., where he oversaw functions that included company strategy, partnerships, corporate development, security, legal, privacy, information technology, and compliance, and he also served as the company's Chief Legal Officer and Corporate Secretary. Lloyd joined New Relic from Latham & Watkins, where he advised a wide range of high-growth technology companies from startup to public-stage.
Lloyd holds a Bachelor of Arts in Political Science and Psychology from the University of California, Davis, and a Juris Doctor from the University of California, Berkeley.
About GitLab
GitLab is the intelligent orchestration platform for DevSecOps. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and approximately 50% of the Fortune 100* trust GitLab to ship better, more secure software faster.
*Fortune 500® is a registered trademark of Fortune Media IP Limited, used under license. Claim based on GitLab data. Fortune 100 refers to the top 20% ranked companies in the 2025 Fortune 500 list, published in June 2025. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of GitLab.
Key Takeaways GitLab 19.2 adds governed agentic AI for secure, compliant software development automation. Duo Agent Platform topped $20 million in paid consumption run rate as Q1 revenues grew 23% y/y.A top 10 U.S. bank saved 1.5 hours per task and plans to expand use of the Duo Agent Platform nearly 20-fold. Shares of GitLab (GTLB - Free Report) have declined 12.9% in the year-to-date period, underperforming the broader Zacks Computer and Technology sector's 11.9% growth. The weakness reflects cautious enterprise IT spending, slower customer expansion and intense competition from Microsoft-owned GitHub, Atlassian and other DevSecOps vendors. These factors have weighed on investor sentiment despite GitLab's continued enterprise customer growth and expanding artificial intelligence (AI) portfolio.
However, GitLab remains focused on strengthening its position in AI-powered software development. It recently launched GitLab 19.2, introducing governed agentic AI capabilities that help enterprises automate software development while maintaining security, compliance and human oversight. The release expands the GitLab Duo Agent Platform with Dependency Scanning Auto-Remediation, which automatically fixes vulnerable software dependencies, Security Review Flow, which detects complex application logic and authorization vulnerabilities, and general availability of Duo CLI and Custom Flows, enabling developers to automate multi-step workflows directly from the command line.
The latest release reflects the growing need for governed AI across enterprises. As AI coding assistants accelerate software development, organizations are increasingly facing bottlenecks in testing, security reviews, compliance and deployment. GitLab addresses these challenges by embedding governance, security and policy enforcement directly into its unified DevSecOps platform, allowing enterprises to scale AI-assisted software development without sacrificing control.
GitLab Benefits From Expanding AI PortfolioGitLab is benefiting from the rapid adoption of governed AI automation within enterprise DevSecOps environments. The company’s latest release builds on a series of AI initiatives introduced throughout 2026. Earlier this year, it expanded its agentic AI capabilities with automated security remediation, intelligent pipeline setup and delivery analytics to streamline software development and DevSecOps workflows. GitLab also broadened access to AI through GitLab Credits, flat-rate AI code reviews and more flexible consumption options, making enterprise AI adoption more accessible across the software development lifecycle.
The rapid rise of AI-generated code is creating a larger opportunity for GitLab's unified DevSecOps platform. In April 2026, platform engagement remained strong, with code pushes across paid SaaS customers increasing 49% year over year and CI pipeline growth accelerating to 38%. As enterprises face growing testing, security and governance requirements, they are increasingly turning to GitLab's platform. In the first quarter of fiscal 2027, the Duo Agent Platform generated more net new annual recurring revenues (ARR) than Duo Pro and Duo Enterprise combined achieved in any previous quarter. Revenues grew 23% year over year to $264.2 million, while the paid consumption run rate exceeded $20 million.
Enterprise customers, especially in regulated industries like banking and biotech, are demanding platform-level governance, audit trails and policy enforcement as they scale AI adoption. In the first quarter of fiscal 2027, a top 10 U.S. bank piloted the Duo Agent Platform and reported significant productivity gains, with developers saving 1.5 hours per task and plans to expand usage nearly 20-fold. CSL Behring, a global biotech leader, deepened its commitment to GTLB’s platform specifically because of its embedded AI governance capabilities.
GitLab’s Strong Q2 FY27 OutlookGitLab's expanding AI platform, growing enterprise adoption and continued product innovation position the company well for sustained top-line growth.
For the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $273.30 million, indicating year-over-year growth of 15.82%.
The consensus mark for second-quarter fiscal 2027 earnings is pegged at 18 cents per share, unchanged over the past 30 days. The figure implies a year-over-year decrease of 25%.
GTLB's Zacks Rank & Other Stocks to ConsiderCurrently, GitLab flaunts a Zacks Rank #1 (Strong Buy).
Digital Turbine (APPS - Free Report) , Dell Technologies (DELL - Free Report) and Analog Devices (ADI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Analog Devices sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 66.7% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 214.8% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of ADI have gained 38.4% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.
SAN FRANCISCO--(BUSINESS WIRE)--(All Remote)--GitLab Inc., the intelligent orchestration platform for DevSecOps, today released GitLab 19.2. As AI generates more code, dependencies, and change than developers can keep up with, GitLab 19.2 brings agentic automation to clear that load.
Developers can now use GitLab to fix vulnerable dependencies automatically, catch the logic flaws scanners miss, create custom agentic workflows, invoke agents from more surfaces they already use, and always do so under the organization’s existing controls. A Forrester Consulting study commissioned by GitLab found organizations using GitLab Duo Agent Platform can achieve 400% return on investment with payback in under six months.
Dependency Scanning Auto-Remediation, Now in Public Beta, Helps Fix Vulnerable Dependencies Automatically
A growing share of application security risk now comes from dependencies teams never chose directly. A study of the Maven ecosystem found vulnerabilities reaching roughly 63% of latest releases through transitive dependencies, and roughly one in eight dependency updates introduces a breaking change, even as compliance deadlines under PCI DSS and FedRAMP keep running.
Dependency Scanning Auto-Remediation, now in public beta, closes that gap. Security developers can now clear vulnerable dependencies without adding work for developers. When a scan finds a vulnerable package, GitLab opens a merge request with the suggested fix. If an upgrade breaks the build, agents iterate to fix the issue in the same merge request. New configuration controls let developers set the severity thresholds and version scope that remediation applies to. Every change stops at existing approval gates and leaves a full audit trail.
Security Review Flow, Now in Public Beta, Brings Security Judgment to Every Merge Request
Developers can now catch a class of vulnerabilities that pattern-based scanners structurally cannot see, on every merge request, when a fix is cheapest. Static scanners are good at identifying flaws that match a known pattern, but application-logic flaws have needed manual review that cannot scale, or penetration testing that arrives too late.
Security Review Flow, now in public beta, is a foundational flow in GitLab Duo Agent Platform. It reasons about what the code is meant to do rather than matching known patterns, and detects broken object-level and function-level authorization, missing authorization on state-changing operations, information disclosure, mass assignment, business logic errors, and race conditions. Findings include severity and a suggested fix where available. The flow never approves on its own; a person always makes the final call.
GitLab Duo CLI, Now Generally Available, Puts Agents in Every Developer’s Terminal
Developers do much of their work in the terminal, where AI assistance has usually meant reaching for tools that lack context on their GitLab projects, pipelines, and agent configurations. GitLab 19.2 closes that gap.
GitLab Duo CLI, now generally available across GitLab.com, Self-Managed, and Dedicated deployments, brings GitLab Duo Agent Platform's agents to the terminal with full project context. A developer can get oriented in unfamiliar code, diagnose a failed pipeline, or propose a fix without leaving the command line. Administrators control rollout across the organization.
Agentic Flows Extend Automation From the Individual to the Whole Team
GitLab Duo Agent Platform's agentic flows are sequences that chain agents to complete multi-step work, and in 19.2, they advance on two fronts.
Custom Flows, the flows teams build themselves, are now generally available. Build a flow once and it runs automatically on GitLab events. Custom Flows now authenticate to external services with short-lived, job-scoped tokens, so automation reaching cloud providers or internal APIs uses the same keyless pattern GitLab CI/CD pipelines already trust.
The upcoming Flow Creation Agent can turn a natural-language description into a custom flow. GitLab's foundational flows, the ones GitLab ships ready to use, also get more capable. The Fix CI/CD Pipeline Flow, now improved, classifies failures before acting and delivers targeted fixes as inline suggestions or a new merge request. GitLab Duo Agentic Chat can now delegate multi-step work to agents.
Controls That Keep the Automation Trustworthy
The point of automating this work is so that teams can trust it to run autonomously. GitLab 19.2 adds the controls that make that safe at scale. The AI Audit Event Report, now in beta, records AI-assisted actions as dedicated audit events, so compliance and security teams can include AI workflows in audit reporting, access reviews, and incident investigation.
Group-level custom instructions for GitLab Duo Code Review let administrators set review behavior across projects at once, and new MCP access controls govern which agents can run and what they can reach.
To learn more, please read the what's new page.
Supporting Quote
"Coding agents made it possible to generate far more code and moved the bottleneck downstream to reviews and security," said Manav Khurana, chief product and marketing officer at GitLab. "GitLab 19.2 puts agents to work on that bottleneck: fixing vulnerable dependencies, catching the flaws scanners miss, and automating the steps in between with a person still approving what ships."About GitLab
GitLab is the intelligent orchestration platform for DevSecOps. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and approximately 50% of the Fortune 100* trust GitLab to ship better, more secure software faster.
*Fortune 500® is a registered trademark of Fortune Media IP Limited, used under license. Claim based on GitLab data. Fortune 100 refers to the top 20% ranked companies in the 2025 Fortune 500 list, published in June 2025. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of GitLab.
GitLab (NASDAQ:GTLB | GTLB Price Prediction) sits in an awkward but strategic corner of the AI software boom: it owns the DevSecOps control plane where enterprise code gets written, tested, secured, and shipped, yet the market has treated it like a laggard. Shares closed at $32.07 on July 2, 2026, down 14.55% year-to-date and 28.95% over the past year, even after a 16.66% one-week rebound.
The Fundamentals Say the Business Is Accelerating Q1 FY27, reported June 2, 2026, delivered revenue of $264.16 million, up 23.15% year-over-year, with non-GAAP EPS of $0.23, GitLab’s ninth consecutive EPS beat. Free cash flow reached $146.73 million, customers over $100K ARR climbed to 1,519, and dollar-based net retention held at 117%. Management guided FY27 revenue to $1.112 to $1.118 billion.
The tradeoff: GitLab is cutting roughly 14% of its workforce, about 350 people, and exiting 22 countries, with $30 to $35 million in pre-tax restructuring charges.
The AI Positioning CEO Bill Staples framed the thesis directly: "GitLab is the only platform that spans the full software lifecycle with one control plane, one data model, and cloud and AI model neutrality." The GitLab Duo Agent Platform now integrates with Anthropic’s Claude models, Amazon Bedrock, and Google Cloud Vertex AI, with agentic code reviews extended to free-tier users.
On the AI Investor Podcast, "GitLab provides the hosting and history of code, testing of code, running the code, securing the code, deploying the code", framing it as an ideal substrate for AI coding agents. Eric Bleeker holds GTLB as an active recommendation in The AI Investor Portfolio, though he has been candid, calling it "most disappointing stock in the portfolio… We’re going to leave as is, despite the potential."
The Competitive Frame: Microsoft and Atlassian The elephant is Microsoft (NASDAQ:MSFT), owner of GitHub and Copilot. Microsoft’s AI business hit an annual run rate above $37 billion, up 123% year-over-year, though the stock is down 18.9% YTD. Collaboration rival Atlassian (NASDAQ:TEAM) has fared worse, off 48.29% YTD to $83.84, despite Q3 revenue growth of 31.7%. GitLab’s single-platform pitch, one data model spanning plan-to-production, differentiates it from GitHub’s code-centric footprint and Atlassian’s workflow suite.
What to Watch Analysts carry an average target of $33.61 with 7 Buys, 17 Holds, and 2 Strong Sells, and shares trade at a forward P/E of 38x and 5.36x trailing sales. The near-term test is whether Duo Agent Platform seat expansion offsets restructuring noise in Q2, when GitLab guided revenue to $272 to $274 million.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and GitLab didn't make the cut. Grab the names FREE today.
It has been about a month since the last earnings report for GitLab Inc. (GTLB - Free Report) . Shares have added about 1.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gitlab due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Gitlab Q1 Earnings Beat Estimate, Revenues Up Y/YGitLab delivered first-quarter fiscal 2027 non-GAAP earnings of 23 cents per share, which beat the Zacks Consensus Estimate of 20 cents by 15%.
Total revenues were $264.2 million, topping the consensus mark of $254 million by 4.04%. The top line increased 23% year over year, supported by solid demand for GitLab’s DevSecOps platform.
GitLab’s Q1 Top-Line DetailsSubscriptions, self-managed and SaaS revenues (90.6% of total revenues) increased 18% year over year to $239.3 million, beating the Zacks Consensus Estimate by 3.16%. License, self-managed and other revenues (9.4% of total revenues) rose 25% year over year to $24.9 million.
GitLab’s revenue growth was supported by continued strength in enterprise adoption and customer expansion metrics. Customers with more than $5,000 of ARR increased to 10,831 (up 7% year over year), while customers with more than $100,000 of ARR rose to 1,519 (up 18%). Dollar-Based Net Retention Rate was 117%.
Contracted demand also improved. Total RPO grew 18% year over year to $1.1 billion, while current RPO increased 24% year over year to $724.1 million.
GitLab’s Operating DetailsOn a non-GAAP basis, research & development expenses increased 13.1% year over year to $57.9 million. Sales and marketing expenses were up 19.2% year over year to $101.9 million. General and administrative expenses increased 11.7% year over year to $34.3 million in the reported quarter.
Profitability improved year over year. GitLab reported non-GAAP operating income of $37.5 million compared with $26.1 million a year ago. The non-GAAP operating margin expanded to14.2% from 12.2%. Non-GAAP gross margin was 87.7% in the first quarter of fiscal 2027.
GitLab’s Balance Sheet & Cash FlowAs of April 30, 2026, cash and cash equivalents and short-term investments were $1.36 billion compared with $1.25 billion as of Jan. 31, 2026.
In the reported quarter, the company generated cash flow from operations of $149.2 million compared with $45.7 million in the previous quarter.
Adjusted free cash flow was $146.7 million as of April 30, 2026, compared with $41.7 million as of Jan. 31, 2026.
GitLab Offers Q2 & FY27 GuidanceFor the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million.
Non-GAAP operating income is expected to be in the range of $30-$32 million for the fiscal second quarter.
Non-GAAP earnings for the fiscal second quarter are expected to be between 17 cents and 18 cents per share.
For fiscal 2027, GitLab raised revenue guidance to between $1.112 billion and $1.118 billion.
Non-GAAP operating income is expected to be in the range of $135-$141 million for fiscal 2027.
Non-GAAP earnings are expected to be between 79 cents and 82 cents per share.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted 26.32% due to these changes.
VGM ScoresCurrently, Gitlab has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Gitlab has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerGitlab belongs to the Zacks Internet - Software industry. Another stock from the same industry, Snowflake Inc. (SNOW - Free Report) , has gained 8.3% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.
Snowflake reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +33.5%. EPS of $0.39 for the same period compares with $0.24 a year ago.
Snowflake is expected to post earnings of $0.45 per share for the current quarter, representing a year-over-year change of +28.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Snowflake has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
As organizations prioritize software development and data-driven insights, choosing between GitLab (GTLB +5.75%) and Snowflake (SNOW +9.33%) requires weighing high-growth potential against significantly different paths toward reaching sustainable profitability.
GitLab focuses on the developer workflow, while Snowflake concentrates on data storage and analysis. They both operate in a competitive cloud environment where enterprise spending is under constant scrutiny, yet they serve distinct roles in the modern technology stack.
The case for GitLabGitLab provides an orchestration platform for DevSecOps, helping teams plan, secure, and deploy software. It serves over 50 million registered users and more than half of the Fortune 100. The company operates within the broader category of tech stocks that enable digital transformation by streamlining how code is written and released.
In its 2026 fiscal year (FY) ended Jan. 31, revenue reached $955.2 million, representing a growth rate of 25.8% compared to the previous year. Despite this growth, the company reported a net loss of close to $56.0 million. This resulted in a net margin of -5.9%, which is a significant improvement from the much deeper losses recorded just two years prior.
As of its January 2026 balance sheet, the debt-to-equity ratio stands at zero. This indicates the company holds no debt relative to its shareholder equity. The current ratio, which measures the ability to cover short-term liabilities with liquid assets, is 2.5x. Free cash flow, defined as cash from operations minus capital expenditures, reached nearly $222.0 million. Note that stock-based compensation (SBC) represented 92.3% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for SnowflakeSnowflake provides an AI Data Cloud platform used for sharing data and running analytics workloads. As of January 31, 2026, it reported 13,328 customers, including 790 of the Forbes Global 2000. The company maintains a massive partnership with Amazon, committing close to $6 billion in spend.
In FY 2026 ended Jan. 31, revenue reached $4.7 billion, indicating growth of 29.2% over the prior year. The company reported a net loss of $1.3 billion, resulting in a net margin of -28.4%. While revenue growth remains robust, the company continues to focus on scale over immediate net profitability.
As of its January 2026 balance sheet, the debt-to-equity ratio is 1.4x. This means total debt is 1.4 times larger than shareholder equity. The current ratio is at 1.3x. Free cash flow for the period was $1.1 billion. Note that stock-based compensation represented 130.9% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparisonGitLab faces intense competition from established providers like Microsoft and Atlassian, creating persistent pricing pressure. The company also manages risks related to its AI strategy, including a heavy reliance on third-party models and high computational costs. Furthermore, ongoing securities litigation and derivative suits continue to consume management resources and create potential financial liabilities.
Snowflake deals with a unique risk where Amazon and Microsoft are simultaneously its most important partners and its primary competitors. Its consumption-based business model can also create financial volatility, as enterprise customers frequently optimize their budgets in response to economic shifts. Additionally, the company is defending against multiple securities class action lawsuits alleging misrepresentations of its revenue trends.
Valuation comparisonSnowflake commands a significantly higher premium on a sales basis, while GitLab appears more attractively priced relative to its revenue growth and its improving net margin profile.
MetricGitLabSnowflakeSector BenchmarkForward P/E32.7x120.5x37.6xP/S ratio4.7x17.2xn/aSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Shares of GitLab and Snowflake were hit hard earlier this year by Wall Street’s fears of AI taking business away from software companies. Those concerns have moderated as GitLab and Snowflake continue to demonstrate strong sales growth.
In its fiscal first quarter ended April 30, GitLab produced a 23% year-over-year increase in revenue to $264.2 million. In the same time period, Snowflake generated $1.39 billion in sales, representing 33% year-over-year growth.
I think GitLab and Snowflake are excellent companies, which is why I bought shares in both. However, if I had to pick just one, my choice is Snowflake right now.
In a world where AI is rapidly evolving, GitLab is more vulnerable to seeing sales impacted due to the technology. Customers may opt to lean more heavily on AI for some of what GitLab’s platform offers.
Meanwhile, Snowflake’s focus is data, which is AI’s lifeblood. Without tons of reliable data, AI systems are not able to execute tasks with accuracy. This is why I see customer demand for Snowflake’s offerings increasing over time, and a key factor in why I think it’s the better stock to buy in 2026.
New survey of 1,528 developers and technology buyers shows 80% say their organization adopted AI tools faster than it developed policies to govern them, and 92% report governance challenges with AI-generated code
SAN FRANCISCO--(BUSINESS WIRE)--ALL REMOTE — GitLab Inc., the intelligent orchestration platform for DevSecOps, today released its AI Accountability Report. Conducted by The Harris Poll, the survey of 1,528 developers and technology buyers across six countries finds that as AI coding tools become standard infrastructure, the conversation is shifting from how fast teams can generate code to whether they can actually control what they are shipping.
The report defines AI accountability as the organizational and technical capability to answer three questions about any line of AI-generated code: where did it come from, what was it meant to do, and who is responsible for it once it's in production? Most organizations cannot answer those questions today.
AI coding adoption and ROI are strong. 91% of organizations have two or more AI coding tools in active use and 78% report that developers are writing and committing code faster since adopting AI tools. But speed is running ahead of control, with 43% of respondents reporting that they cannot reliably distinguish AI-generated code from human-written code in their own codebase. This comes with a forward-looking concern. 73% of respondents are concerned about the maintainability of AI-generated code in their organization's codebase, and 82% say it risks creating a new form of technical debt their organization is not yet prepared to manage.
Key findings:
Agentic AI delivering speed and control is the next frontier
91% of organizations have two or more AI coding tools in active use; 54% have three or more60% say AI coding ROI has exceeded expectations; 78% report faster code output; 73% say overall code quality has improved79% agree that individual developer productivity has improved with AI, but the overall software delivery process has not accelerated at the same pace. This is defined as the “AI Paradox”82% say AI-generated code risks creating a new form of technical debt organizations are not prepared to manage85% agree AI has shifted the bottleneck from writing code to reviewing and validating it84% agree the biggest challenge with AI-generated code is governing what happens to it after it's createdTraceability gaps leave organizations exposed
87% are confident their team could determine within 24 hours whether AI-generated code contributed to a production incident, yet 34% of organizations that experienced an incident in the past year could not actually make that determinationThe top barriers to control and traceability are structural: difficulty distinguishing AI-generated from human-written code (43%), fragmented toolchains (40%), and systems that don't track code origin (39%)Only 28% say their software development lifecycle tools are fully integrated with shared data and workflowsGovernance is the missing layer
92% report some form of governance challenge with AI-generated code80% agree their organization adopted AI tools faster than it developed policies to govern them83% of organizations identify AI-generated code accumulation as a risk to manage now, with 44% calling it a top technology risk91% are likely to invest in AI code governance tools in the next 12 months; 98% have already allocated or expect to allocate budget85% agree the next phase of AI in software will focus less on generating code and more on governing it"AI coding tools have delivered on their promise of speed. But the events of the past few months, including supply chain attacks, reliability issues, and regulators tightening expectations around AI traceability and provenance are making clear that speed without control is a liability, not an advantage," said Manav Khurana, Chief Product and Marketing Officer at GitLab. "The teams thinking ahead are already asking the harder question: can we actually control all the code we’re generating? The organizations that will ship trusted software faster are the ones building the foundations of accountability with context, traceability, and governance baked into the platform, not just bolted on after the fact."
About GitLab
GitLab is the intelligent orchestration platform for DevSecOps. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and approximately 50% of the Fortune 100* trust GitLab to ship better, more secure software faster.
*Fortune 500® is a registered trademark of Fortune Media IP Limited, used under license. Claim based on GitLab data. Fortune 100 refers to the top 20% ranked companies in the 2025 Fortune 500 list, published in June 2025. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of GitLab.
GitLab Inc. (GTLB - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Gitlab basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Gitlab imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for GitlabThis company is expected to earn $0.81 per share for the fiscal year ending January 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Gitlab. Over the past three months, the Zacks Consensus Estimate for the company has increased 35.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Gitlab to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
SAN FRANCISCO--(BUSINESS WIRE)--All Remote - GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced it has been named a Leader in the 2026 Gartner Magic Quadrant for DevSecOps Platforms. This Magic Quadrant, which evaluated 13 vendors, marks the fourth consecutive year GitLab has been named a Leader.
As agentic software development tools accelerate coding, the remaining stages of the software lifecycle require agentic infrastructure that scales at the same pace. GitLab's research across more than 1,500 developers and technology leaders found that 91% of organizations now run two or more AI coding tools, and 73% worry about maintaining the code those tools generate. GitLab connects planning, development, security, and deployment in a single platform, giving enterprises the compliance and governance infrastructure required for agentic scale.
According to Gartner, “organizations use DevSecOps platforms to reduce the friction and maintenance costs inherent in custom toolchains, decrease manual handoffs, and address the lack of consistent visibility throughout the software development life cycle (SDLC). This enables product teams to deliver faster customer value without compromising security or quality. The DevSecOps platform market reflects the consolidation of technologies across development, security, infrastructure and operations to streamline software delivery.”
This recognition comes as GitLab continues its rapid pace of innovation, having shipped new solutions to customers every month for 175+ consecutive months. On June 10, 2026, GitLab hosted Transcend, a live and streaming event showcasing the next generation capabilities of its platform that are purpose-built for the agentic era.
Download a complimentary copy of the report, and read the blog.
Supporting Quote
"Being named a Leader in the 2026 Gartner Magic Quadrant for DevSecOps Platforms for the fourth consecutive year reflects what our enterprise customers already know,” said Manav Khurana, chief product and marketing officer, GitLab. “Agentic engineering is accelerating every part of the software lifecycle - some of our customers’ codebases are growing up to five times in a single year - and enterprises need the agentic infrastructure from GitLab to move fast with enterprise control."Source: Gartner, Magic Quadrant for DevSecOps Platforms, Keith Mann, Thomas Murphy, Bill Holz, June 15, 2026.
Gartner and Magic Quadrant are trademarks of Gartner, Inc., and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
About GitLab
GitLab is the intelligent orchestration platform for DevSecOps. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and approximately 50% of the Fortune 100* trust GitLab to ship better, more secure software faster.
*Fortune 500® is a registered trademark of Fortune Media IP Limited, used under license. Claim based on GitLab data. Fortune 100 refers to the top 20% ranked companies in the 2025 Fortune 500 list, published in June 2025. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of GitLab.
Are you looking for a fast-moving software challenger or a mature cloud titan? Deciding between GitLab (GTLB +0.34%) and Oracle (ORCL +0.41%) requires weighing rapid expansion against established profitability and heavy infrastructure investment.
GitLab focuses on streamlining the software development lifecycle through a single application, while Oracle provides the massive cloud and database backends that power global enterprises. These companies represent two different ways to invest in the digital transformation currently reshaping every major industry.
The case for GitLabGitLab provides an intelligent orchestration platform for DevSecOps that helps organizations build, test, and secure software in one place. This unified approach is popular among tech stocks because it eliminates the need for teams to manage dozens of disconnected tools. More than 50% of the Fortune 100 companies use GitLab, leveraging its direct sales and partner network to scale their software development.
The company continues to see strong demand for its orchestration services. In FY 2026, revenue reached approximately $955.2 million, which represents a growth rate of roughly 25.8% compared to the previous year. While the business is growing quickly, it reported a net loss of approximately $56 million for the period as it continues to invest heavily to capture market share.
GitLab maintains a strong balance sheet to support its expansion. As of its January 2026 balance sheet, the debt-to-equity ratio, which compares total debt to shareholders’ equity, was approximately zero. The current ratio, a measure of a company’s ability to pay its short-term obligations with its current assets, was roughly 2.5x. Free cash flow, or cash remaining after capital asset expenditures, was about $222 million. Note that stock-based compensation represented roughly 92.3% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
The case for OracleOracle is a staple of the enterprise world, providing the cloud and database infrastructure that keeps governments and large corporations running. The company has shifted its focus heavily toward cloud services and artificial intelligence infrastructure. Recent wins include major federal contracts with the U.S. Air Force and the Centers for Disease Control and Prevention, underscoring its role as a critical service provider.
Financial performance in FY 2026 remained robust for this legacy leader. Revenue reached nearly $67.4 billion, reflecting a growth rate of approximately 17.4% over the prior year. Oracle also maintained high profitability, reporting net income of roughly $17.1 billion, which resulted in a net margin of approximately 25.4%.
Oracle operates with a much different financial structure than its smaller competitors. As of its May 2026 balance sheet, the debt-to-equity ratio was approximately 3.6x. The current ratio was nearly 1.1x, suggesting a narrower margin for meeting short-term liabilities. Free cash flow for the year was negative $23.7 billion, indicating the company is spending significantly more on cloud infrastructure and capital assets than it generates from its operations.
Risk profile comparisonGitLab faces risks associated with its history of net losses and the difficulty of forecasting revenue under a usage-based billing model. The company also faces intense competition from established providers such as Microsoft (MSFT +0.19%) and Atlassian (TEAM 1.98%), which have significant resources to challenge GitLab in the software development market. Furthermore, recent shareholder litigation and cybersecurity threats related to AI-integrated workflows could divert management attention and lead to unexpected legal costs.
Oracle is currently navigating several securities fraud class action lawsuits alleging it misled investors about the risks and returns of its aggressive AI spending. The company is also highly dependent on its ability to secure data center capacity and critical hardware components from third-party suppliers. Geopolitical instability in regions like China and Taiwan could disrupt these supply chains, while new international tax laws and data privacy litigation create additional layers of financial uncertainty.
Valuation comparisonGitLab currently trades at a higher premium relative to its future earnings estimates, while Oracle offers a higher sales multiple despite its established profitability.
MetricGitLabOracleSector BenchmarkForward P/E32.7x23.3x37.6xP/S ratio4.7x8.0xn/aSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
GitLab has been successfully growing its revenue and expanding its portfolio of AI-powered development tools. However, in recent years, investors have been cautious with software-as-a-service companies due to concerns about growth expectations. The company generates positive free cash flow but remains unprofitable, largely because it spends heavily on research and development to remain competitive in the agentic AI space.
Oracle was once known primarily for its database software but has transformed in recent years to become a leader in cloud computing and AI infrastructure. Thanks to the AI boom, demand for Oracle’s services has accelerated to the point that it has a huge backlog, which means even more revenue growth is in its future. Like GitLab, Oracle is spending heavily to expand its data centers. But it already has customers committed to using its expanding infrastructure, so management can better predict the potential returns on those investments.
Both stocks have compelling qualities. GitLab continues to expand and develop its offerings in agentic AI and remains attractive to developers looking to consolidate on its unified platform. But Oracle is heavily involved in the build-out of AI infrastructure and already has customers lined up as it expands. It appears to have the better combination of scale and profitability. For that reason, Oracle would be my choice in this comparison.
GitLab Inc. (GTLB - Free Report) closed the last trading session at $27.79, gaining 17.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $35.13 indicates a 26.4% upside potential.
The average comprises 23 short-term price targets ranging from a low of $25.00 to a high of $65.00, with a standard deviation of $9.81. While the lowest estimate indicates a decline of 10% from the current price level, the most optimistic estimate points to a 133.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for GTLB, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in GTLBThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 35.9%, as eight estimates have moved higher compared to no negative revision.
Moreover, GTLB currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much GTLB could gain, the direction of price movement it implies does appear to be a good guide.
GitLab NASDAQ: GTLB reported first-quarter fiscal 2027 revenue of $264 million, up 23% year over year, as executives pointed to enterprise demand, growth in dedicated deployments and early traction for its agentic AI products.
GitLab Inc. (GTLB) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to earnings of $0.17 per share a year ago.
For the quarter ended April 2026, GitLab Inc. (GTLB - Free Report) reported revenue of $264.16 million, up 23.1% over the same period last year. EPS came in at $0.23, compared to $0.17 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $253.9 million, representing a surprise of +4.04%. The company delivered an EPS surprise of +12.58%, with the consensus EPS estimate being $0.20.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Gitlab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- License-self-managed and other: $24.85 million versus the seven-analyst average estimate of $21.81 million. The reported number represents a year-over-year change of +24.1%.Revenue- Subscription-self-managed and SaaS: $239.31 million compared to the $231.98 million average estimate based on seven analysts. The reported number represents a change of +23.1% year over year.Revenue- SaaS: $88.22 million versus the two-analyst average estimate of $83.54 million. The reported number represents a year-over-year change of +37.5%.Revenue- License-self-managed: $18.19 million versus the two-analyst average estimate of $14.65 million. The reported number represents a year-over-year change of +21%.Revenue- Subscription-self-managed: $151.08 million versus $149.44 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16% change.Revenue- Professional services and other: $6.66 million versus the two-analyst average estimate of $5.51 million. The reported number represents a year-over-year change of +33.2%.View all Key Company Metrics for Gitlab here>>>
Shares of Gitlab have returned +37.4% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
GitLab remains a compelling buy as software stocks lag hardware-driven AI market gains. GTLB's Q1 beat-and-raise, record bookings, and healthy ARR growth counter the SaaSpocalypse narrative. The shift to a consumption-based model and a 14% workforce reduction strengthens margin prospects amid AI disruption.
GitLab (NASDAQ:GTLB) reported first quarter financial results that exceeded Wall Street expectations for revenue and earnings, but shares fell about 4%...
Global digital asset exchange traded products (ETPs) closed May 2026 with total assets under management (AUM) of $130.9 billion, down 4% at the end of...
Developer platform GitLab has laid off about 14% of its workforce, about 350 employees, as part of a broader restructuring effort it detailed last month.
The company said in May that it was going to reduce its workforce as it exited 22 countries, flattened management layers, and invested in infrastructure to scale its platform and serve increased traffic from AI workflows, with a sharper focus on research and development.
CEO Bill Staples said during a conference call on Tuesday that agentic workloads are stressing developer infrastructure more than it was designed to handle. It isn’t a problem unique to GitLab. The company’s rival GitHub has itself struggled to deal with a massive influx of AI-powered submissions that have affected its uptime.
“Agents work at machine scale, and they’re pushing competitors to the brink. This quarter we began a generational rebuild of git to support the scale and features required for 100x growth. This is a scale requirement that didn’t exist before and has become a real pain point for every team on their agentic journey,” Staples said.
Staples said the company has partnered with an unspecified AI lab to design and rebuild its infrastructure for AI workloads, as well as construct APIs “optimized for agents to store and retrieve context, including code.” It is also investing in orchestration tools for coordinating software development between AI agents and developers, building a context layer, and baking in governance tools directly into its platform.
GitLab joins a number of tech companies such as Intuit, Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle that have laid off large numbers of employees, citing a need to make AI a core part of their business. The tech industry has already cut more than 100,000 jobs this year, per Statista, and is on track to outpace both 2024 and 2025 if the layoff trend continues.
The pattern is by now familiar: Companies are reporting record revenues while simultaneously shrinking their workforces, with AI cited as both the reason for the growth and the justification for the cuts.
Indeed, all of these companies have recently reported strong revenue and profit, pointing to strong demand for AI products, services, or the infrastructure to power them, and GitLab is no exception.
On Tuesday, the company reported first-quarter revenue of $264 million, up 23% from a year earlier, and gross margins of 88%. It expects to incur $30 million to $35 million in restructuring expenses as part of the effort.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Ram is a financial and tech reporter and editor. He covered North American and European M&A, equity, regulatory news and debt markets at Reuters and Acuris Global, and has also written about travel, tourism, entertainment and books.
You can contact or verify outreach from Ram by emailing [email protected].
GitLab (NASDAQ:GTLB) reported first quarter financial results that exceeded Wall Street expectations for revenue and earnings, but shares fell about 4% after the company announced a restructuring plan that includes workforce reductions and a smaller geographic footprint.
Alongside its earnings release, GitLab disclosed a restructuring initiative aimed at aligning its operating structure with strategic priorities. The company plans to reduce its full-time workforce by approximately 14%, affecting about 350 employees, and exit 22 countries, reducing its geographic team footprint by roughly 37%.
GitLab expects to incur between $30 million and $35 million in pre-tax restructuring charges, primarily related to severance, employee termination benefits, and retention costs.
About $19 million of those charges are expected to be recognized in the second quarter of fiscal 2027, with most of the remaining costs recorded over the following three quarters.
The company expects the plan to be substantially completed by the end of fiscal 2027.
For the quarter ended April 30, 2026, GitLab reported revenue of $264.2 million, up 23% from $214.5 million a year earlier and ahead of analysts' consensus estimate of $254.2 million.
Adjusted earnings were $0.23 per diluted share, topping expectations of $0.20 per share.
Among other operating metrics, customers generating more than $100,000 in annual recurring revenue (ARR) increased 18% year-over-year to 1,519, while customers with more than $5,000 in ARR rose 7% to 10,831. The company's dollar-based net retention rate was 117%.
GitLab reported total remaining performance obligations (RPO) of $1.1 billion, up 18% from a year earlier, while current RPO increased 24% to $724.1 million.
GitLab CEO Bill Staples said the company is benefiting from growing demand driven by artificial intelligence and automation.
"The agentic era is creating structural tailwinds for GitLab, and Q1 showed it clearly with accelerating platform activity and promising traction from GitLab Duo Agent Platform," Staples said in a statement.
Needham Sees Strong AI Growth Ahead For GitLabNeedham analyst Mike Cikos maintained a Buy rating on GitLab and raised the price forecast from $32 to $38.
Cikos said GitLab only carried part of its quarterly outperformance into its fiscal 2027 outlook due to macro headwinds and potential near-term disruption from its Act 2 restructuring.
He said gross bookings growth accelerated to its highest level in four quarters, GitLab Dedicated topped $70 million in ARR, and Ultimate reached 57% of ARR.
Cikos also said Duo Agent Platform showed strong early adoption, with a paid consumption run rate near $20 million.
GitLab expects $30 million to $35 million in fiscal 2027 restructuring cash expenses, including $19 million in the second quarter, while cutting 14% of staff, or about 350 employees.
BTIG Says Duo Agent Platform Gains MomentumBTIG analyst Nick Altmann maintained a Buy rating on GitLab and raised the price forecast from $30 to $36.
Altmann said GitLab delivered a solid quarter despite several moving parts.
He said revenue grew 23%, about 400 basis points above consensus, while GitLab modestly raised its fiscal 2027 growth outlook to about 16.7% at the midpoint.
Altmann said Duo Agent Platform is gaining momentum, with paid consumption run rate reaching about $20 million.
He said DAP contributed more net new ARR than Duo Pro and Duo Enterprise combined in any prior quarter.
Altmann also said the company's 14% workforce reduction clears part of the path forward, while fiscal 2027 operating margin guidance rose about 40 basis points to 12.4%.
Altmann said GitLab's agentic AI story remains the main swing factor for growth durability and a broader share rerating.
DA Davidson Cites Macro Risks Despite BeatDA Davidson analyst Lucky Schreiner maintained a Neutral rating on GitLab and raised the price forecast from $24 to $35.
Schreiner said GitLab delivered an above-average revenue beat and showed early traction for Duo Agent Platform.
He said fiscal first-quarter revenue beat consensus by about $10 million as growth stabilized at 23%.
The company guided fiscal 2027 revenue to $1.115 billion at the midpoint, implying about 17% growth.
Schreiner said SaaS outperformance and early DAP adoption helped the quarter, but macro pressure, price-sensitive customers representing 20% of ARR, and customer headcount reductions still limit near-term upside.
He said fiscal 2027 adjusted operating income guidance rose by $5 million to $138 million, while second-quarter revenue guidance of $273 million matched consensus and implied 16% year-over-year growth.
Guggenheim Questions Long-Term AI ImpactGuggenheim analyst Howard Ma reiterated a Neutral rating on GitLab after the company delivered stable first-quarter revenue growth and raised its full-year outlook.
Ma said GitLab's first-quarter revenue rose 23% year over year to $264 million, topping consensus, while adjusted operating income reached $38 million, or a 14% margin.
He said Duo Agent Platform showed early promise, with an annualized consumption run rate of $20 million, but added that it remains unclear how material the product can become.
Ma also flagged continued pressure from price-sensitive customers, tech layoffs, M&A-related churn, and weaker net adds among customers with ARR of more than $5,000.
Ma said GitLab could modestly beat guidance, projecting fiscal 2027 revenue of $1.134 billion, up 19%, and an operating margin of about 15% versus the company's 12.4% guidance.
GitLab Price ActionGTLB Price Action: GitLab shares were down 2.14% at $31.14 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways GitLab reported Q1 FY2027 revenues of $264.2M, up 23% year over year and above estimates.GTLB grew its customers with ARR above $100,000 by 18% year over year to 1,519.GitLab raised FY2027 revenue guidance to $1.112B-$1.118B and lifted earnings outlook. GitLab (GTLB - Free Report) delivered first-quarter fiscal 2027 non-GAAP earnings of 23 cents per share, which beat the Zacks Consensus Estimate of 20 cents by 15%.
Total revenues were $264.2 million, topping the consensus mark of $254 million by 4.04%. The top line increased 23% year over year, supported by solid demand for GitLab’s DevSecOps platform.
However, GitLab shares declined 3.52% in pre-market trading.
GitLab’s Q1 Top-Line DetailsSubscriptions, self-managed and SaaS revenues (90.6% of total revenues) increased 18% year over year to $239.3 million, beating the Zacks Consensus Estimate by 3.16%. License, self-managed and other revenues (9.4% of total revenues) rose 25% year over year to $24.9 million.
GitLab’s revenue growth was supported by continued strength in enterprise adoption and customer expansion metrics. Customers with more than $5,000 of ARR increased to 10,831 (up 7% year over year), while customers with more than $100,000 of ARR rose to 1,519 (up 18%). Dollar-Based Net Retention Rate was 117%.
Contracted demand also improved. Total RPO grew 18% year over year to $1.1 billion, while current RPO increased 24% year over year to $724.1 million.
GitLab’s Operating DetailsOn a non-GAAP basis, research & development expenses increased 13.1% year over year to $57.9 million. Sales and marketing expenses were up 19.2% year over year to $101.9 million. General and administrative expenses increased 11.7% year over year to $34.3 million in the reported quarter.
Profitability improved year over year. GitLab reported non-GAAP operating income of $37.5 million compared with $26.1 million a year ago. The non-GAAP operating margin expanded to14.2% from 12.2%. Non-GAAP gross margin was 87.7% in the first quarter of fiscal 2027.
GitLab’s Balance Sheet & Cash FlowAs of April 30, 2026, cash and cash equivalents and short-term investments were $1.36 billion compared with $1.25 billion as of Jan. 31, 2026.
In the reported quarter, the company generated cash flow from operations of $149.2 million compared with $45.7 million in the previous quarter.
Adjusted free cash flow was $146.7 million as of April 30, 2026, compared with $41.7 million as of Jan. 31, 2026.
GitLab Offers Q2 & FY27 GuidanceFor the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million.
Non-GAAP operating income is expected to be in the range of $30-$32 million for the fiscal second quarter.
Non-GAAP earnings for the fiscal second quarter are expected to be between 17 cents and 18 cents per share.
For fiscal 2027, GitLab raised revenue guidance to between $1.112 billion and $1.118 billion.
Non-GAAP operating income is expected to be in the range of $135-$141 million for fiscal 2027.
Non-GAAP earnings are expected to be between 79 cents and 82 cents per share.
GitLab’s Zacks Rank & Stocks to ConsiderCurrently, GitLab carries a Zacks Rank #3 (Hold).
Micron Technology (MU - Free Report) , Ciena (CIEN - Free Report) and Amphenol (APH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 274.2% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 168.1% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4.
Amphenol shares have gained 9.9% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
SAN FRANCISCO--(BUSINESS WIRE)--All Remote - GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced GitLab Transcend, a hybrid event for technology and engineering leaders taking place June 10-11, 2026. GitLab will introduce the latest and upcoming platform updates designed to power agentic engineering at enterprise scale, delivering speed with control across the entire software lifecycle. Event Details WHAT: GitLab Transcend, a virtual event for technology and engin.
GitLab's NASDAQ: GTLB Q1 earnings release left something to be desired, but it was still a healthy report. The primary concerns center on executing the Act 2 turnaround, which appears to be gaining traction.
GitLab Inc. remains a hold as near-term growth deceleration and seat contraction weigh on valuation despite encouraging DAP and AI platform adoption. DAP's general availability drove strong initial adoption, but monetization has yet to fully offset the weaker dollar-based net retention rate (DBNRR) and slower overall growth. Restructuring, including a 14% workforce reduction and country exits, introduces execution risk during a critical period for growth acceleration.
Although its shares have bounced from their lows, GitLab (GTLB 1.94%) stock failed to keep its momentum when the company reported its fiscal first-quarter results after the bell on June 2. The DevSecOps (development, security, and operations) company has been caught in the narrative that it will be an AI loser, despite continuing to deliver strong revenue growth. The stock has lost about a third of its value over the past year.
Let's take a closer look at its results and prospects to determine if the growth stock is a buy, or if it's time for investors to give up on the name.
Today's Change
(
-1.94
%) $
-0.55
Current Price
$
27.85
Solid growth continues GitLab saw solid growth in fiscal Q1, coming from both new and existing customers. It realized a 30% increase in new logo growth -- i.e., acquiring new customers -- in the quarter, while its dollar-based net retention was 117% over the past 12 months, showing strong growth within its customer base. The company said it was seeing rising demand from non-technical users, while it also recorded nearly $20 million in consumption revenue from its Duo Agentic Platform.
Overall revenue climbed 23% year over year to $264.2 million. That was well above the company's guidance for revenue of $253 million to $255 million. Subscription revenue increased by 23% year over year to $239.3 million, while license revenue jumped by 25% to $24.9 million.
The company continues to focus on enterprise customers, where it is seeing the strongest growth. The number of customers with $100,000 or more in annual recurring revenue (ARR) rose by 18% to 1,519, making up 75% of its ARR. Meanwhile, customers with $5,000 or more in ARR now represent 95% of its business.
Looking ahead, GitLab upped its full-year guidance. It now expects full-year fiscal 2027 revenue of $1.112 billion to $1.118 billion, representing growth of 16% to 17%, and adjusted earnings per share (EPS) in the range of $0.79 to $0.82. That's up from a prior forecast for revenue of $1.099 billion to $1.118 billion and adjusted EPS of $0.76 to $0.80.
For fiscal Q2, it forecast revenue to be between $272 million and $274 million, representing approximately 16% growth at the midpoint. It guided for adjusted EPS of between $0.17 and $0.18.
The company also announced that it is slashing about 14% of its workforce and exiting 22 countries as it flattens its organizational structure. This will not impact sales rep numbers, which it has been increasing. It expects the impact of more quota-carrying sales reps to start to have a positive impact in the second half of the year.
Image source: Getty Images.
Is it time to buy the stock? GitLab continues to produce solid growth, although management maintains a conservative tone as it continues to make organizational changes. The new logo growth was encouraging, and its switch to a hybrid seat-plus consumption pricing model (combining a fixed, recurring per-user fee with variable charges based on product usage) with its Duo Agent Platform (which requires consumption credits) appears to be paying early dividends. Meanwhile, the company is set to get in on the popular trend of offering flexible credits with the introduction of GitLab Flex.
The stock remains unloved, leaving it with an attractive price-to-sales multiple of just 4.1 based on fiscal 2027 (ending January 2027) analyst estimates, despite being a company flush with cash and growing its revenue at a solid clip. I continue to believe the company has a highly valuable platform and is undervalued, and as such I'd be a buyer of the stock at these levels.
SAN FRANCISCO--(BUSINESS WIRE)--All Remote - GitLab Inc., the intelligent orchestration platform for DevSecOps, announced that Chaim Mazal has joined as Chief Information Security Officer (CISO). Mazal leads GitLab's global security organization, overseeing the security of GitLab as a company and as a platform. His expertise in AI and security operations will help ensure GitLab delivers the security rigor that AI agents require, including addressing emerging, AI-driven threats. Mazal has 15 yea.
SAN FRANCISCO--(BUSINESS WIRE)--All Remote - GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced new capabilities at GitLab Transcend to give engineering teams the infrastructure, context, and controls to run agent-driven software delivery at enterprise scale. As engineering teams scale agent activity, the infrastructure, governance, and commercial models built for human-speed delivery are showing strain. The four capabilities announced today address the bottlenec.
SAN FRANCISCO--(BUSINESS WIRE)--All Remote – GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced a managed GitLab offering on Google Cloud, delivered by GitLab-certified managed service providers, enabling secure and sovereign deployments for enterprises. Enterprises running software development at scale benefit from having AI model access and control over their code, pipelines, and security data in the same platform. This collaboration addresses both. GitLab and.
