Greenland Capital Management LP purchased a new position in shares of GitLab Inc. (NASDAQ:GTLB – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 27,908 shares of the company’s stock, valued at approximately $852,000.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Allworth Financial LP boosted its position in GitLab by 124.1% during the third quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after acquiring an additional 309 shares during the last quarter. Quarry LP purchased a new stake in shares of GitLab in the 3rd quarter valued at $31,000. Tsfg LLC acquired a new position in GitLab during the 2nd quarter worth about $31,000. Fifth Third Bancorp lifted its stake in GitLab by 220.6% during the 1st quarter. Fifth Third Bancorp now owns 1,603 shares of the company’s stock worth $35,000 after acquiring an additional 1,103 shares in the last quarter. Finally, Larson Financial Group LLC boosted its holdings in GitLab by 92.7% during the 3rd quarter. Larson Financial Group LLC now owns 1,000 shares of the company’s stock valued at $45,000 after acquiring an additional 481 shares during the period. Hedge funds and other institutional investors own 95.04% of the company’s stock.
Insider Buying and Selling at GitLab In related news, Director Sytse Sijbrandij sold 116,200 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $28.44, for a total value of $3,304,728.00. Following the sale, the director directly owned 14,902,051 shares in the company, valued at $423,814,330.44. The trade was a 0.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Simon Mundy sold 8,725 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $38.00, for a total value of $331,550.00. Following the sale, the chief accounting officer owned 105,332 shares in the company, valued at approximately $4,002,616. This trade represents a 7.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by corporate insiders.
GitLab Price Performance GTLB opened at $49.83 on Monday. GitLab Inc. has a 52 week low of $18.73 and a 52 week high of $55.55. The business has a 50 day moving average price of $37.34 and a two-hundred day moving average price of $29.25. The company has a market cap of $8.42 billion, a PE ratio of -155.71 and a beta of 0.99. GitLab (NASDAQ:GTLB – Get Free Report) last announced its earnings results on Tuesday, September 1st. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.06. The company had revenue of $286.25 million for the quarter, compared to the consensus estimate of $273.13 million. GitLab had a negative return on equity of 1.28% and a negative net margin of 4.99%.The company’s revenue was up 21.3% on a year-over-year basis. During the same period last year, the business posted $0.24 EPS. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. As a group, sell-side analysts expect that GitLab Inc. will post -0.27 EPS for the current fiscal year.
Analyst Upgrades and Downgrades GTLB has been the topic of a number of recent research reports. Zacks Research lowered shares of GitLab from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 3rd. Piper Sandler upped their target price on shares of GitLab from $28.00 to $52.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 2nd. Truist Financial reiterated a “hold” rating and set a $48.00 target price (up from $40.00) on shares of GitLab in a report on Wednesday. TD Cowen raised their price target on shares of GitLab from $29.00 to $42.00 and gave the company a “hold” rating in a research report on Thursday, August 27th. Finally, Guggenheim restated a “neutral” rating on shares of GitLab in a research note on Wednesday, September 2nd. Seven investment analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $51.75.
Read Our Latest Report on GitLab
Key Stories Impacting GitLab Here are the key news stories impacting GitLab this week:
Positive Sentiment: Several firms raised their outlooks or reiterated bullish views. Piper Sandler lifted its price target to $52, while Morgan Stanley, UBS, Mizuho, Wells Fargo, Robert W. Baird, Needham and Rosenblatt indicated expectations for further appreciation. Needham separately maintained its Buy rating. Piper Sandler Raises GitLab Price Target Positive Sentiment: RBC Capital increased its GitLab price target to $60, implying additional upside, even though it retained a Hold rating. The higher target reflects improved expectations after the earnings beat. RBC Raises GitLab Price Target Positive Sentiment: GitLab reached a new 52-week high after the strong results, signaling continued investor momentum and renewed confidence in its growth outlook. GitLab Hits 52-Week High Neutral Sentiment: Analyst sentiment is not unanimous. RBC, Guggenheim and TD Cowen maintained Hold or Neutral ratings, suggesting that the recent rally and valuation may already reflect much of the expected earnings improvement. Guggenheim Reiterates Neutral Rating Neutral Sentiment: Unusually high options activity indicates elevated trading interest and potential volatility, but does not establish a clear directional signal. GitLab Options Trading Negative Sentiment: The initial earnings reaction included a sharp after-hours sell-off despite the earnings beat, indicating that some investors may have been disappointed by guidance, valuation or the extent of upside already priced into GTLB. GitLab After-Hours Sell-Off About GitLab (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.
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After turning in another solid quarter, GitLab (GTLB +1.05%) is starting to prove the bear case wrong, and its stock is finally beginning to reflect that, with its shares climbing on its latest report.
The DevSecOps (development, security, and operations) company not only reported results that topped expectations and issued upbeat guidance, but its new annual recurring revenue (ARR) also grew at its fastest pace in several years. This is an indication that its core growth trajectory is reaccelerating.
Let's dig into the company's results and prospects to see why I think this growth stock remains a buy.
GitLab starts to flex its strength GitLab turned in some impressive underlying metrics in the third quarter, led by its new ARR surging 42% year over year, its second-highest rate in the past four years. Its calculated billings rate, meanwhile, jumped 24%, which was double the growth rate it saw last quarter, and it said its sales team delivered its largest gross bookings ever. Its first-order count more than doubled to 1,700, while first-order ARR rose 39%. Meanwhile, its dollar-based net retention remained strong at 117% over the past 12 months, showing the first sequential improvement since 2024.
Long pegged as a loser amid the rise of artificial intelligence (AI), the company is starting to thrive in the current landscape. Management noted that AI is significantly lowering the bar for software development, which is helping drive demand for its platform and services. In addition, AI is giving GitLab more opportunities to monetize the growing amount of work occurring across the software life cycle.
The company recently introduced its Flex model, which lets customers commit to an annual dollar rate that it can shift between seats, consumption credits, and new capabilities. It expects this model to improve retention and drive growth, although it will have some revenue-recognition impact. It currently thinks that for every $50 million converted to Flex, it would lead to $5 million of revenue being recognized in future periods. Since its introduction six weeks ago, the company has already seen customers commit over $20 million to the program.
Turning to GitLab's results, overall revenue jumped 21% year over year to $286.3 million. That was well above the company's guidance for sales of $272 million to $274 million. Subscription revenue also increased by 21% year over year to $258.3 million, while license revenue rose by 20% to $27.9 million.
The company continues to see strength with its largest customers. Deals of $500,000 or more grew by more than 150% in the quarter. Sales of its high-end Ultimate tier, meanwhile, jumped 35% and now accounts for 59% of its ARR. It also said it saw a rebound in the public sector, which had been struggling.
Management once again upped its full-year guidance and now expects full-year fiscal 2027 revenue of $1.129 billion to $1.133 billion, representing growth of 18% to 19%, and adjusted earnings per share (EPS) in the range of $0.85 to $0.87. That's up from a prior forecast for revenue of $1.112 billion to $1.118 billion and adjusted EPS of $0.79 to $0.82.
For the fiscal third quarter, it forecasts revenue to be between $281 million and $283 million, representing 15% to 16% growth. It guided for adjusted EPS between $0.19 and $0.20. The company said it has not adjusted its guidance yet for the potential impact Flex could have on growth.
Image source: The Motley Fool.
The stock still looks like a buy While off its lows, GitLab's valuation remains attractive. The stock is trading at a forward price-to-sales multiple of under 6.5 based on analyst estimates for fiscal 2028 (ending January 2028), despite the company growing its revenue around 20% and having over 15% of its market cap in cash.
Most importantly, the underlying metrics point to a business that is about to reaccelerate. While Flex will cause some distortions, that should not impact how investors view the stock. As such, I still consider it a buy even after its rebound.
GitLab (GTLB +1.05%) stock saw big gains this week after the company served up a beat-and-raise quarterly report. The company's share price climbed 11.1% across the stretch against the backdrop of a 0.3% gain for the S&P 500 and a 0.2% gain for the Nasdaq Composite.
After the market closed on Tuesday, GitLab published results for the second quarter of its 2027 fiscal year -- which ended July 31. The stock is now up roughly 33% year to date.
Image source: Getty Images.
GitLab's fiscal Q2 results were much better than expected With its fiscal Q2 report, GitLab posted non-GAAP (adjusted) earnings per share of $0.24 on revenue of $286.3 million -- significantly outperforming the average Wall Street analyst estimate for per-share earnings of $0.18 on sales of roughly $273.4 million. Revenue in the period was up roughly 21% year over year, and adjusted earnings per share were in line with the prior-year quarter. The business notched record bookings in the quarter, and net annualized recurring revenue increased more than 40% year over year.
GitLab also delivered guidance hikes Following strong sales and contract momentum in fiscal Q2, GitLab raised its full-year sales target to between $1.129 billion and $1.133 billion -- up from previous guidance for sales between $1.112 billion and $1.118 billion. Before the report, the average analyst estimate put target sales at $1.12 billion. Meanwhile, adjusted earnings per share are now projected to be between $0.85 and $0.87 -- up from previous guidance for adjusted earnings between $0.79 per share and $0.82 per share.
Notably, demand related to artificial intelligence played a significant role in powering the company's beat-and-raise quarter. The growth of AI software creation looks poised to create sustained tailwinds for the tech specialist.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends GitLab. The Motley Fool has a disclosure policy.
Shares of GitLab (GTLB +1.05%) skyrocketed in August, gaining 34.9%, according to data supplied by S&P Global Market Intelligence. That's 90-fold higher than the 2.6% gains of the S&P 500.
It turns out the threat of artificial intelligence (AI) to the software sector wasn't as bad as some feared.
Image source: The Motley Fool.
Wall Street (and investors) have a change of heartOver the past few months, enterprise and software-as-a-service (SaaS) stocks have taken a beating, with the phenomenon labeled the "SaaSpocalypse." The main talking point held that AI agents would take over many of the tasks now accomplished by traditional enterprise software, making those offerings obsolete. The ensuing panic took down a large cross-section of software stocks, and GitLab wasn't spared, losing 48% of its value between early January and early April.
More recently, however, investors have been revisiting those dire predictions and concluding that the truth is more nuanced. Sure, AI agents can automate certain tasks, but it's unlikely they will be able to completely replace complex software deeply integrated into existing business systems.
GitLab's DevSecOps (software development, operations, and security) coding platform, for example, provides a secure environment for software creation. The company stands to benefit from the proliferation of AI, as humans increasingly interact with agents to build software.
Following that realization, there was a flurry of activity on Wall Street, as analysts revised their models and their price targets. After careful consideration, many investment banks decided that the end wasn't nye. In August, a host of analysts raised their price targets on GitLab:
BTIG analyst Nick Altman maintained a buy rating and assigned a $52 price target, up from $36. The analyst argued that far from being displaced by AI agents, the trend was a tailwind for GitLab.RBC Capital analyst Matthew Hedberg maintained a hold rating on GitLab while increasing his price target to $46 from $29. The analyst cited recent financial results from other software providers that left him more optimistic about the future.BofA analyst Koji Ikeda maintained a neutral (hold) rating but increased his price target on GitLab to $45 from $38 (the second such increase in August). The analyst cited multiple expansion in the software sector, improving growth, and the easing of AI-disruption fears for his increased optimism.There were many more, but you get the drift.
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PostscriptJust as September dawned, GitLab reported the results of its fiscal 2027 second quarter (ended July 31) and confirmed what Wall Street had predicted. Revenue of $286.3 million rose 21% year over year, the company's adjusted operating margin ticked higher to 15% from 14% in Q1, and adjusted earnings per share (EPS) of $0.25 was flat. This was well ahead of analysts' consensus estimates of revenue of $273.1 million and adjusted EPS of $0.18.
Other metrics were equally robust. Remaining performance obligation (RPO) -- or contractually obligated revenue that hasn't yet been recognized -- climbed 16% to $1.2 billion, while current RPO (which will be recognized within 12 months) jumped 20% to $744.7 million. This was all far from the SaaSpocalypse-related carnage investors had expected.
GitLab's rebound has had a commensurate impact on its valuation. The stock now sells for 57 times forward earnings and 48 times next year's expected earnings -- so it isn't exactly cheap. However, now that the SaaSpocalypse is in the rearview mirror, the future looks bright.
Software delivery pipelines are undergoing a fundamental transformation. While consumer-facing artificial intelligence (AI) applications grapple with elevated churn rates, enterprise developer tools are proving their pricing power. GitLab Inc NASDAQ: GTLB recently highlighted this divergence, delivering a strong second-quarter fiscal year 2027 (FY2027) performance that underscores tangible business demand for integrated AI tools.
GitLab Today
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The software development platform reported a 21.3% jump in quarterly revenue to about $286 million, beating Wall Street estimates. Adjusted earnings of 24 cents per share easily beat the 18-cent consensus.
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GitLab’s earnings momentum reveals a broader shift in how development teams consume software. By moving away from rigid constraints and leaning into flexible, AI-driven utilization, businesses building continuous integration and deployment pipelines are capturing immediate, verifiable returns on investment. The underlying mechanics driving this top-line acceleration reveal how enterprise software is evolving right before our eyes, shifting the narrative from speculative hype to measurable fundamentals.
Refactoring Revenue: The Pivot to Flex Pricing Pays OffHistorically, enterprise software vendors relied heavily on seat-based licensing. This model often creates friction for organizations, leading to complaints about paying for inactive users or struggling to scale access across fragmented teams. GitLab recently executed a strategic pivot toward a consumption-based pricing model known as Flex, effectively neutralizing those historical pain points.
During the latest quarter, platform-wide paid consumption run rate exceeded $40 million. This metric highlights a structural tailwind for sustained enterprise adoption. When development teams can buy credits and allocate them dynamically across agentic AI tools such as Duo Enterprise, Suo Pro, or the Duo Agent Platform, the barrier to entry drops significantly. Organizations no longer have to commit to expensive, rigid seat licenses for developers who might only need intermittent access to advanced code-generation or security-scanning features.
The DevSecOps pipeline, where development, security, and operations integrate seamlessly, requires adaptable tools. Unifying these functions into a single interface reduces toolchain complexity, saving engineers countless hours. Net annual recurring revenue growth surpassed 40% in the second quarter. This acceleration shows that AI monetization in the developer space is verifiable. Customers are willing to pay a premium for tools that measurably increase developer velocity. By integrating artificial intelligence directly into the workflow, rather than forcing developers to toggle between disjointed applications, GitLab is establishing a sticky, high-retention revenue stream that supports its roughly $8.38 billion market capitalization.
Current Price$49.83High Forecast$70.00Average Forecast$51.75Low Forecast$36.00GitLab Stock Forecast Details
Top-line growth naturally attracts attention, but sustainable market valuations require a clear path to profitability. A glance at the current financials shows a trailing net margin hovering around -4.99%. Negative margins often cause hesitation for institutional buyers, especially in a macroeconomic environment that heavily penalizes cash-burning software providers. In a climate where enterprise IT budgets are under heavy scrutiny, proving direct return on investment is paramount.
To ease these concerns, GitLab management raised its fiscal 2027 adjusted earnings guidance, narrowing expectations to 85 to 87 cents per share. This figure stands in stark contrast to the prior 61-cent Wall Street consensus. Such an upward revision signals accelerating operating leverage. The market is beginning to price in future cash flow stabilization, anticipating that the aggressive top-line expansion will soon outpace operating expenses.
This forward-looking confidence implies that customer acquisition costs are decreasing relative to the lifetime value of those flexible, usage-based contracts. As the consumption model scales, the incremental cost of delivering AI features could drop, paving the way for margin expansion. Software businesses that successfully cross this threshold transition from speculative growth plays into mature, cash-generating assets. GitLab currently trades at a price-to-sales ratio of about 7.94, a valuation that requires this level of operational maturity to sustain upward momentum.
Handling Exceptions: Separating Noise From RealityPricing in fundamental growth requires filtering out near-term market mechanics. Shares recently rose roughly 10% during regular trading hours, partly propelled by unconfirmed acquisition rumors involving cloud monitoring leader Datadog Inc. NASDAQ: DDOG.
The speculation that a large tech player might acquire a prime asset in the software infrastructure layer added an unquantified premium to the stock price. The logic behind the rumor holds strategic weight, as integrating observability metrics with a unified code repository creates a formidable end-to-end development ecosystem.
Closing the Tag: Strategic Steps for Software InvestorsThe developer tools sector is positioned for continued evolution as artificial intelligence moves from an experimental novelty to a more common workflow requirement. Platforms that can successfully monetize these capabilities through flexible, customer-friendly pricing structures are well-positioned to capture outsized market share. The substantial jump in quarterly revenue and upward guidance revisions suggest that enterprise demand for integrated developer tools is accelerating rapidly.
The transition to a consumption-based pricing model offers fundamental stability that can outweigh near-term merger-and-acquisition noise or speculative trading volatility. While current trailing net margins require ongoing monitoring, the projected earnings growth points toward a healthy financial trajectory as operating leverage takes hold.
Investors monitoring the infrastructure software space may want to keep a close eye on consumption metrics in upcoming quarters to confirm that operating leverage continues to materialize. Cautious market participants might prefer to wait for post-earnings volatility to settle and for GitLab to establish a stronger base before initiating a position, keeping a close watch on future enterprise adoption rates.
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Shares of GitLab (GTLB +9.98%) gained on Wednesday after the software development platform highlighted its artificial intelligence (AI)-fueled growth prospects.
Image source: Getty Images.
Winning new customers GitLab helps developers create and test software faster and more securely on a single, integrated platform. These benefits are evident in its financial results.
GitLab's total revenue rose 21% year over year to $286.3 million in its fiscal 2027 second quarter, which ended on July 31. The gains were driven by new customer additions and higher sales to existing users.
First orders placed by brand-new customers more than doubled to 1,700, while clients generating annual recurring revenue of over $100,000 climbed 17% to 1,571.
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Investors should note that GitLab is not yet profitable on a generally accepted accounting principles (GAAP) basis. However, its adjusted operating income increased nearly 8% to $42.6 million.
All told, GitLab's adjusted earnings per share came in at $0.24, well above Wall Street's projection of $0.18.
AI could be a powerful growth driver for GitLab Looking ahead, management guided for full-year revenue of $1.13 billion in fiscal 2027. The company also forecast adjusted operating of $150 million and earnings per share of $0.86 at the midpoint of its guidance ranges.
Although analysts remain concerned about the threat of disruption from AI-powered coding tools, CEO Bill Staples said AI is providing a notable boost to its business.
"As AI drives more software creation and more work through the development lifecycle, the context, security, governance, and control GitLab provides become increasingly valuable," Staples said. "We believe this creates a significant opportunity for GitLab as humans and agents increasingly build software together."
Key Takeaways GitLab's Q2 revenues rose 21.3% to $286.25 million, while net ARR growth accelerated to 42%. GitLab added about 1,700 first orders as $500,000-plus deals grew more than 150% year over year. GitLab raised its fiscal 2027 revenue outlook to $1.129-$1.133 billion, implying 18-19% growth. GitLab (GTLB - Free Report) reported second-quarter fiscal 2027 non-GAAP earnings of 24 cents per share, which remained unchanged year over year and 33.33% above the Zacks Consensus Estimate.
Revenues of $286.25 million rose 21.3% year over year and beat the consensus mark by 4.74%.
Broad-based strength across new and existing customers supported the quarter. Net annual recurring revenue (ARR) growth accelerated to 42% year over year, while the dollar-based net retention rate was 117%.
GTLB’s Revenue Mix Shows Broad-Based GrowthSubscription, self-managed and SaaS revenues increased 21.5% year over year to $258.31 million. License, self-managed and other revenues rose 20.1% year over year to $27.94 million.
SaaS revenues represented 34% of total revenues and increased 36% year over year. Calculated billings grew 24%, while total remaining performance obligations rose 16% to $1.2 billion and current RPO increased 20% to $744.7 million.
GitLab’s Customer Expansion AcceleratesCustomers generating more than $5,000 of ARR reached 11,114, up 8% year over year. Customers with more than $100,000 of ARR increased 17% year over year to 1,571. Ultimate ARR grew roughly 35% and accounted for 59% of total ARR. Eight of GitLab’s 10 largest second-quarter deals purchased Ultimate, while gross retention remained above 90%.
GitLab recorded approximately 1,700 first orders, more than double the year-ago level, while first-order net ARR increased 39%. Deals worth at least $500,000 grew more than 150% year over year. Account executive capacity increased about 30%, while productivity per rep improved about 10%.
GitLab's Flex and AI Products Gain TractionGitLab Flex attracted more than 130 customers with over $20 million in commitments during its first six weeks in market. Paid consumption run rate exceeded $40 million at quarter-end, up from $15 million exiting the first quarter. Management is targeting more than $100 million by fiscal year-end.
Duo Agent Platform paid consumption run rate increased roughly 50% sequentially. GitLab Orbit, which entered public beta in June, had more than 2,200 organizations enabled indexing and generated more than 170,000 customer queries. Roughly 80% of query volume came from customers connecting Orbit to external agents.
GTLB's Operating DetailsIn the second quarter of fiscal 2027, non-GAAP gross margin was 86%, down from 90% in the prior year.
On a non-GAAP basis, sales and marketing expenses rose 15.8% year over year to $103.82 million, research and development costs increased 24.6% year over year to $65.17 million, and general and administrative expenses advanced 19.1% year over year to $36.00 million.
Non-GAAP operating income increased 7.6% year over year to $42.57 million. However, the corresponding operating margin was 15%, down from 17% in the year-ago quarter.
GTLB's Cash Flow Weakens on Collection TimingAs of July 31, 2026, cash and cash equivalents and short-term investments were $1.26 billion compared with $1.36 billion as of April 30, 2026.
Operating cash outflow was $3.09 million compared with operating cash flow of $49.37 million in the year-ago quarter. Adjusted free cash flow declined to $9.75 million from $46.45 million.
The company repurchased approximately 3.5 million shares during the quarter and had about $245 million remaining under its current authorization.
GitLab Raises Fiscal 2027 OutlookFor the third quarter of fiscal 2027, GitLab expects revenues of $281-$283 million, implying 15%-16% year-over-year growth. Non-GAAP operating income is projected to be $35-$37 million, while non-GAAP earnings are expected to be between 19 cents and 20 cents per share.
For fiscal 2027, revenues are now projected to be $1.129-$1.133 billion, representing 18-19% growth. Non-GAAP operating income is expected to be $148-$152 million, and earnings are likely to be between 85 cents and 87 cents per share. The outlook assumes a normalized bookings pace, modest Duo Agent Platform revenue contribution and excludes the potential revenue-timing impact of Flex. Management estimates a maximum $13 million fiscal 2027 revenue-timing impact from Flex adoption.
GTLB’s Zacks Rank & Stocks to ConsiderGitLab currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector include Ciena (CIEN - Free Report) , Docusign (DOCU - Free Report) and Micron Technology (MU - Free Report) . Each stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Ciena shares have surged 268.4% in the year-to-date period. Ciena is set to report third-quarter fiscal 2026 results on Sept. 3.
Shares of Docusign have plunged 13.3% year to date. Docusign is set to report second-quarter fiscal 2027 results on Sept. 3.
Shares of Micron Technology have rallied 129.9% year to date. Micron Technology is slated to report fiscal fourth-quarter 2026 results on Sept. 30.
GitLab (GTLB) beat earnings and raised guidance, leading to a jump the stock at Wednesday's opening bell. Diane King Hall discusses why investors are seeing promise for a further rally even as the company faces a crowded trade.
For the quarter ended July 2026, GitLab Inc. (GTLB - Free Report) reported revenue of $286.25 million, up 21.3% over the same period last year. EPS came in at $0.24, compared to $0.24 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $273.3 million, representing a surprise of +4.74%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.18.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: $27.94 million versus $25.76 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +20.1% change.Revenue- Subscription-self-managed and SaaS: $258.31 million versus $247.31 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +21.5% change.Revenue- SaaS: $97.6 million versus the two-analyst average estimate of $91.5 million. The reported number represents a year-over-year change of +35.5%.Revenue- License-self-managed: $20.66 million compared to the $20.6 million average estimate based on two analysts. The reported number represents a change of +13.9% year over year.Revenue- Subscription-self-managed: $160.71 million versus $154.68 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.3% change.Revenue- Professional services and other: $7.28 million compared to the $6.26 million average estimate based on two analysts. The reported number represents a change of +41.8% year over year.View all Key Company Metrics for Gitlab here>>>
Shares of Gitlab have returned +23.6% over the past month versus the Zacks S&P 500 composite's +2% 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.
Key Takeaways GitLab made Flex central to growth after 130 customers committed over $20M in its first six weeks.GTLB raised fiscal 2027 revenue guidance to $1.129B-$1.133B after Q2 revenues and EPS topped estimates.GitLab's net ARR rose 42%, retention hit 117%, and $500K-plus deals grew more than 150% year over year. GitLab Inc. (GTLB - Free Report) used its second-quarter fiscal 2027 earnings call to frame Flex as the centerpiece of its next growth phase, linking seat subscriptions with a broader consumption model for AI-era software development.
The quarter also gave management more confidence in the business. Revenues were $286.3 million, beating the Zacks Consensus Estimate of $273.3 million. Non-GAAP earnings were $0.24 per share, above the consensus mark of $0.18.
GTLB Makes Flex Central to GrowthCEO Bill Staples said that more than 130 customers committed over $20 million to Flex in its first six weeks, helping platform-wide paid consumption run rate, or CRR, rise above $40 million.
Staples also mentioned that the model lets customers redirect committed dollars among Premium and Ultimate seats, GitLab credits and eligible usage products without repeated contracting cycles.
CFO Jessica Ross added that management expects Flex to become increasingly important, while stressing that its near-term impact is primarily about revenue timing rather than customer commitments or cash economics.
GitLab Raises Outlook but Normalizes H2Ross raised fiscal 2027 revenue guidance to $1.129-$1.133 billion and projected non-GAAP earnings of $0.85-$0.87 per share.
For the fiscal third quarter, Ross guided revenues of $281-$283 million, non-GAAP operating income of $35 million-$37 million and diluted earnings of $0.19-$0.20 per share.
Ross cautioned that the second-half outlook assumes normalized bookings after unusually strong fiscal second-quarter execution. She said that guidance excludes Flex's potential accounting impact, with a maximum fiscal 2027 revenue-timing effect of approximately $13 million.
GTLB Sees Sales Execution ImproveStaples said that account executive capacity increased about 30% year over year while productivity per representative improved roughly 10%, contributing to GitLab's largest gross bookings quarter.
Ross said that net ARR grew 42% year over year, dollar-based net retention reached 117%, and the company recorded approximately 1,700 first orders, more than double the prior-year level.
Ross also highlighted better public-sector activity and a sharp increase in larger transactions, with deals of at least $500,000 growing more than 150% year over year.
GitLab Builds Around AI-Driven ConsumptionStaples described AI as a driver of more customers, more products and more consumption. Duo Agent Platform paid CRR grew about 50% sequentially.
Staples said that more than 2,200 organizations enabled GitLab Orbit indexing, while about 80% of customer query volume came from customers connecting Orbit to external agents.
In Q&A, a Canaccord Genuity analyst asked about GitLab's next-generation Git strategy. Staples said that the company is rearchitecting Git infrastructure for roughly 100 times the scale required by human workflows and is also advancing artifact management.
GTLB Q&A Tests Flex Economics and MarginsA BofA Securities analyst asked which metric best captures Flex progress. Staples pointed to paid CRR, which includes Flex commitments, credit commitments and paid on-demand usage, with a fiscal year-end target above $100 million.
A UBS analyst asked whether Flex customers were increasing commitments. Ross said that it was too early to quantify that, while Staples stated that Flex can create headroom for new products and reduce contraction tied to unused seat capacity.
A Baird analyst pressed on gross-margin pressure from AI. Ross said that SaaS represented 34% of revenues, while Staples said that recent margin changes were driven more by SaaS mix than early AI adoption.
GitLab Keeps Focus on ExecutionStaples closed with an emphasis on repeating the second-quarter's execution while expanding monetization beyond seats. His growth framework centers on new customers, additional products and consumption.
Ross maintained that the transition to Flex will create reporting noise, particularly in revenue recognition and current RPO, and committed to quantifying those effects each quarter.
GTLB's Zacks Signals Stay MixedGTLB carries a Zacks Rank #3 (Hold). Within the Zacks framework, the Style Scores complement the Rank and grade value, growth and momentum characteristics from A through F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GTLB's Growth Score of A is its strongest style signal, while the Value Score of F is the weakest. It has a Momentum Score of C and a VGM Score of C. Higher grades indicate better expected performance within the framework, but the Zacks Rank can change as earnings estimates are revised following the just-reported results.
Dell Technologies Inc (NYSE:DELL) is up 3.9% after the tech hardware titan posted better-than-expected second-quarter earnings and revenue and raised its full-year forecast amid strong AI server demand.
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$55.55$51.88
GitLab’s NASDAQ: GTLB SaaS-pocalypse rebound is gaining momentum after a software-validating earnings report. The company’s metrics show intensifying demand for its product, which includes embedded AI and governance tools across the software development platform. The ultimate impact of AI disruption on SaaS stocks remains uncertain, but it is clearly driving increased software development, which is GitLab’s specialty.
Governance and compliance are critical factors in this story, as GitLab’s DevSecOps platform is a crucial cog in heavily regulated industries, including healthcare, financial services, defense, and the public sector. These sectors face intense scrutiny around integrity, reliability, and security, which GitLab is happy to support.
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Chain Reaction: Strong Results Lead to a Stock Price SurgeAmong the catalysts emerging with the Q2 fiscal year (FY2027) release are analysts' responses and the stock price surge they drove. Analysts who had been lifting targets ahead of the release issued another string of price target increases and upgrades after it, strengthening the sentiment trend and forecasting fresh highs.
As it stands, MarketBeat tracks 29 analysts, sufficient for strong conviction, rating the stock as a consensus of Hold. The post-release surge aligned the market with the consensus, suggesting upside is limited, but the trend leads to the high end of the range and a nearly two-year stock price high. The likely outcome, based on the greater than 100% increase in first orders, is that momentum continues to build, upcoming releases are better than expected, and analyst trends continue to strengthen.
The stock price surge is monumental. GitLab jumped more than 20% in after-hours and premarket trading, extending the strong rebound. The move puts the market at an 18-month high and on track to test a critical resistance level near $60. It aligns with prior price action and may cap gains until the subsequent report is released.
GitLab Blows Past Forecasts, Raises Guidance as Internals AccelerateGitLab had a robust quarter, putting many of the market’s fears to rest. Net revenue of $286.3 million rose 21.3% year over year (YOY), beating consensus by 475 basis points on strength in new clients and offerings. Net new annual recurring revenue (ARR) grew more than 40%, and the net retention rate (NRR) accelerated to 117% as existing clients leaned more into GTLB services such as Flex. Flex is a new pricing structure that enables enterprises to consolidate software spending into a single annual commitment, providing better visibility and cost outcomes for clients. The impact on GTLB is increased adoption of its services.
Segmentally, the core Subscription business grew by 21.4%, while Licensing also grew a solid 20%. SaaS represented 34% of total revenue and grew 36% year over year, while total remaining performance obligation (RPO) rose 16% to $1.2 billion. Customers with more than $100,000 in ARR grew 17%, and deals of $500,000 or more increased more than 150%, strengthening GitLab’s revenue visibility and enterprise-demand story.
Margin news is mixed: margins contracted YOY, but they came in better than expected, which could support higher share prices. Key details include a 15% adjusted operating margin, positive free cash flow, and 24 cents in adjusted earnings, flat YOY but 6 cents, or about 33%, better than forecast.
GitLab Guides for Strength: Momentum Gains Suggest a Cautious OutlookGuidance is also a catalyst for higher share prices. The company expects the strengths to continue, issuing favorable Q3 FY2027 targets and lifting the full-year outlook. The new targets put the low end of the expected range in line with consensus; if they aren’t above consensus, they expect strength that likely underestimates the market. Agentic AI has only just begun to flourish, with strengths across the software ecosystem pointing to accelerating momentum in the coming quarters.
Current Price$51.04High Forecast$70.00Average Forecast$51.08Low Forecast$36.00GitLab Stock Forecast Details
Institutions reflect strong confidence in this stock, owning more than 95% of the shares. As importantly, they’ve been accumulating quarterly for over a year, underpinning market support for GTLB, and their activity noticeably strengthened in early Q3 FY2027. The data shows buying activity spiking and selling dropping to nearly zero. This suggests limited downside in Q3 and Q4, though pullback risk remains. The sudden 20% price pop offers an attractive profit-taking and exit point for existing holders and may lead to consolidation or a pullback before the market can sustain traction and move to new highs.
GitLab’s biggest risks this year include scaling its business and competition. While scaling appears to be a minor concern, competition is more pressing. GitLab provides ample utility, but so do Microsoft’s NASDAQ: MSFT GitHub and Azure DevOps, which are far better supported. GitLab is well-capitalized and can continue to execute its strategy, gaining share alongside market growth, but is unlikely to disrupt Microsoft’s business anytime soon.
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GitLab shares GTLB gained 13% in trading on Wednesday after the DevSecOps platform reported better-than-expected second-quarter results and raised its full-year revenue and profit forecasts.
The results offered investors evidence that the growing use of artificial intelligence in software development could expand rather than weaken demand for GitLab's platform.
GitLab reported revenue of $286.3 million for the second quarter, up 20% year over year and above estimates compiled by Visible Alpha.
Adjusted earnings came in at 24 cents per share, also exceeding analyst expectations.
CEO Bill Staples said the increasing use of AI to develop software has created a "significant opportunity" for GitLab to expand sales. The company also reported a record quarter for gross bookings.
The results come as software development increasingly incorporates AI-powered coding tools and agents.
GitLab's management believes higher code volumes and new types of software builders could increase demand for tools covering source code control, security, governance, context and orchestration.
William Blair upgraded GitLab to Market Perform from Underperform following the results.
Analyst Jason Ader cited growing confidence in the company's growth outlook, including an improvement in gross net retention sequentially for the first time since 2024.
Ader also pointed to better go-to-market execution, including increased account executive capacity, improved productivity per representative and stronger sales attainment.
He said early adoption of GitLab's Flex offering provided evidence that the company could expand beyond a purely seat-based business model.
Several analysts increased their price targets following GitLab's results, although ratings remained mixed.
UBS maintained its Neutral rating while raising its price target to $50 from $40.
Analyst Radi Sultan said the company's guidance does not include a revenue headwind from Flex and warned that the transition could create additional noise in reported revenue growth over the next two quarters.
Sultan noted that the transition to Flex is expected to take more than three fiscal years, while the maximum revenue headwind from the self-managed renewal cohort is estimated at $13 million.
Bank of America also maintained a Neutral rating and lifted its price target to $54 from $45. Analyst Koji Ikeda said the key question is whether GitLab can gain market share as AI agents increasingly write software.
Ikeda pointed to GitLab's DevSecOps Platform (DAP), noting that paid committed recurring revenue increased to $40 million from $15 million in the previous quarter.
Management is targeting $100 million in paid committed recurring revenue in fiscal 2027.
Needham reiterated its Buy rating and raised its price target to $65 from $38. Analyst Mike Cikos highlighted a 30% year-over-year increase in account executive capacity and a 10% improvement in productivity per representative.
Cikos also noted that GitLab recorded more than 1,700 first orders during the quarter, representing growth of more than 100% year over year.
Piper Sandler raised its price target to $52 from $28 while retaining a Neutral rating.
The firm cited improving execution, accelerating net annual recurring revenue growth and new-logo growth.
Piper Sandler said the quarter represented GitLab's largest quarterly beat since the third quarter of 2024.
However, it also noted that headline revenue growth continues to decelerate and said further valuation expansion likely depends on an acceleration in total revenue growth, which it expects in fiscal 2028 at the earliest.
Index Dow Jones +0,48 % na 53019,7 b. S&P 500 +0,15 % na 7642,92 b. Nasdaq Composite 0 % na 26099,28 b.
Nejsledovanější americké indexy se v úvodu obchodují kolem nuly. Dnes po uzavření trhů zveřejní svá čísla výrobce čipů a infrastrukturního softwaru Broadcom (-0,64 %).
Daří se akciím technologického výrobce Dell Technologies (+6,7 %) po reportu za 2Q. Tržby i očištěný zisk na akcii opět výrazně překonaly očekávání analytiků, hlavním motorem růstu zůstala rekordní poptávka po AI serverech, silně ale rostla i tradiční serverová a úložišťová část byznysu. Společnost zároveň zvýšila celoroční výhled tržeb o 25 mld. USD na 192 mld. USD.
Naopak ztrácejí akcie Palo Alto Networks (-8,7 %), působící v oblasti kybernetické bezpečnosti, po reportu za 4Q FY 2026. Výsledky byly podle analytiků nad očekáváním a poskytnutý výhled byl podle nich také nad odhady. Společnost těží z poptávky po jejich řešeních, kterou vytváří hrozba AI.
Mimo index S&P 500 se výrazně daří akciím společnosti GitLab (+13,6 %), která poskytuje webový distribuovaný systém správy verzí, po reportu výsledků za 2Q. Ty předčily očekávání a společnost také navýšila svůj celoroční výhled. Naopak mimo index ztrácejí akcie společnosti MongoDB (-12,8 %), která vyvíjí a poskytuje stejnojmennou databázovou platformu, poté, co růst v produktu Atlas zaostaly za očekáváním, avšak analytici výsledky hodnotí pozitivně, přičemž výsledky překonaly očekávání a firma navýšila celoroční výhled.
Společnost S&P Global (-0,2 %) údajně zvažuje oddělení své datové a výzkumné platformy Capital IQ Pro.
Přepravní společnost Uber (+1,0 %) ruší přibližně 3 300 pracovních míst, což představuje 10 % jejích zaměstnanců po celém světě.
Index S&P 500 +0,15 % na 7642,92 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,4 % Utility -1,2 % Zdravotní péče +1,3 % Reality -1 % Komunikační služby +1,1 % Energie -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Dell Technologies (DELL) +6,7 % PG&E Corp (PCG) -9,4 % Reddit (RDDT) +5,4 % Palo Alto Networks (PANW) -8,7 % Charter Communications (CHTR) +4,4 % Edison International (EIX) -7,3 % Brown-Forman Corp (BF/B) +4,4 % Amphenol Corp (APH) -4,0 % Trade Desk (TTD) +3,6 % Crowdstrike Holdings (CRWD) -3,8 % Zdroj: Bloomberg
Gitlab Inc (NASDAQ:GTLB) on Tuesday reported better-than-expected second-quarter financial results and raised its FY27 guidance above estimates.
GitLab reported adjusted/non-GAAP earnings of 24 cents per share 24 cents, which beat the consensus estimate of 18 cents, per Benzinga Pro data. Quarterly revenue came in at $286.25 million, which beat the Street estimate of $273.12 million and was up from $235.96 million in the same period last year.
"Q2 was an exceptional quarter, with record gross bookings and net ARR growth exceeding 40% year over year," said Bill Staples, GitLab CEO.
GitLab raised its fiscal 2027 adjusted EPS guidance to between 85 cents and 87 cents, versus the 81 cent analyst estimate, and raised its revenue outlook to between $1.129 billion and $1.133 billion, versus the $1.12 billion estimate.
GitLab shares jumped 21.6% to $54.84 in pre-market trading.
These analysts made changes to their price targets on GitLab following earnings announcement.
BTIG analyst Nick Altmann maintained the stock with a Buy and raised the price target from $52 to $60. Piper Sandler analyst Rob Owens maintained the stock with a Neutral and raised the price target from $28 to $52. Needham analyst Mike Cikos maintained the stock with a Buy and raised the price target from $38 to $65. Trending
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Stock futures are mixed this morning as the market looks to rebound from a recent slump; Dell shares are surging after the tech giant reported strong results and boosted its forecasts; AI chipmaker Broadcom and database software firm Snowflake are set to report earnings this afternoon; GitLab shares are soaring after a strong quarterly report; and MongoDB stock is tumbling despite solid results. Here’s what you need to know today.
Stock Futures Are Mixed After Tuesday Sell-Off
Stock futures are little-changed after major indexes fell yesterday for the third straight session. Futures tied to the Dow Jones Industrial Average and the benchmark S&P 500 were recently up 0.3% and 0.1%, respectively, while tech-heavy Nasdaq futures slipped 0.1%. The major indexes tumbled Tuesday to kick off of September, typically the weakest month of the year for markets. WTI oil futures were down 1% at $89 per barrel, after surging the previous two days following a new wave of attacks in the Middle East. The 10-year Treasury yield was down slightly at 4.78% recently, after rising to 4.82% earlier this morning, its highest level since late 2023. Yields have surged recently amid concerns about the Iran war, inflation, the outlook for interest rates, and the government’s ability to manage its $40 trillion debt. Gold futures ticked lower to $4,380 an ounce, while bitcoin was trading at $76,700, down from a high yesterday above $79,000.
Dell Stock Soars on Strong Earnings, Raised Outlook
Dell Technologies (DELL) shares are rallying this morning after the PC and server maker handily topped estimates in its second-quarter report last night. Dell said it earned an adjusted $7.04 per share in the quarter, more than tripling year-over-year and blowing past the analyst consensus of $4.91 compiled by Visible Alpha. Revenue grew by nearly 60% to $46.97 billion, also easily surpassing estimates. The company’s third-quarter forecasts of $49 billion in revenue and adjusted EPS of $6.50 also beat forecasts. Dell also substantially raised its full-year sales and profit outlooks thanks to a growing AI server business that added $60.9 billion in orders in the quarter, lifting Dell’s total backlog to $95 billion.1 Dell stock, which has more than tripled in price since the start of the year, was up 9% in recent premarket trading.
Broadcom and Snowflake Report This Afternoon
Investors will get another pair of updates on the tech sector this afternoon, with results from chipmaker Broadcom (AVGO) and database software provider Snowflake (SNOW). Broadcom is expected to report revenue of $29.49 billion and adjusted EPS of $3.24, both nearly doubling year-over-year amid strong demand for chips used to power AI products. The stock has been under pressure in recent months, erasing gains from earlier in the year amid worries about an AI bubble and Broadcom’s position in the competitive AI chip market. Snowflake is seen reporting revenue of $1.48 billion and adjusted EPS of 45 cents. Shares have rallied this year thanks to strong demand for Snowflake’s new AI software products, soaring more than 35% in one session following its last report in May. Broadcom shares were down slightly premarket, while Snowflake shares fell more than 2%.
GitLab Stock Jumps on Solid Results, Rosy Forecast
Shares of GitLab (GTLB) are soaring this morning after the software development platform topped estimates. GitLab reported revenue of $286.25 million, up 20% year-over-year, along with adjusted earnings of 24 cents per share. CEO Bill Staples said the growing use of AI to build software is leading to a “significant opportunity” for GitLab to grow its sales, as the company logged a record quarter for gross bookings. GitLab also lifted its full-year sales and profit forecasts.2 GitLab shares were up 25% ahead of the opening bell, putting them on track to hit their highest level since early 2025.
MongoDB Stock Drops Despite Strong Results
MongoDB (MDB) also beat estimates last night, but its stock is tumbling today. The database provider reported second-quarter revenue of $771.8 million, up 30% from a year ago, while adjusted EPS nearly doubled to $1.90. The company also lifted its full-year forecasts, noting that most of the second-half growth that led to the raised outlook is due to the growth of its Atlas platform.3 Investors may have been simply hoping for more, or looking for broader growth than just relying on Atlas after the stock rallied nearly 30% since the start of August through Tuesday’s close. MongoDB shares were down 12% recently, set to sink back into negative territory for the year at market open.
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GitLab Inc (NASDAQ:GTLB) reported second-quarter revenue and profit that beat analyst estimates, as the company's shift toward consumption-based artificial intelligence revenue gained momentum, sending its shares up more than 14% on Wednesday morning. The DevSecOps platform provider posted revenue of $286.3 million for the quarter, above the $273 million analysts had expected and up 21% year-over-year.
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GitLab shares have more than doubled from the high teens, driven by renewed investor enthusiasm over Artificial Intelligence. GitLab reported its usual top and bottom line beats, although revenue growth continued to slow and adjusted net income barely increased. Key metrics showed better trends this time around, but they still show some worrisome signs.
GitLab’s Price Recovery Gains Traction—Time to Get On Board?GitLab NASDAQ: GTLB reported second-quarter fiscal 2027 revenue of $286.3 million, up 21% from a year earlier, as the company cited record gross bookings, accelerating net annual recurring revenue growth and increased demand for its software development platform.
Non-GAAP operating income was $42.6 million, representing a 15% operating margin, compared with $39.6 million a year earlier. Chief Executive Officer Bill Staples said the company’s sales organization delivered its largest gross bookings quarter on record, while net ARR increased more than 40% year over year.
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GitLab Sell-Off Overdone: AI and Cash Flow Signal a ReboundChief Financial Officer Jessica Ross said net ARR grew 42% year over year, marking the company’s second-highest quarterly growth rate in the last four years. Revenue exceeded the company’s prior guidance by roughly five percentage points, according to Ross.
New Customer Activity and Enterprise Demand GitLab said first-order activity strengthened during the quarter. The company recorded approximately 1,700 first orders, more than double the figure from a year earlier, while new-logo net ARR increased 39%. First-order net ARR rose nearly 40%, Staples said.
Strong Quarter, Weak Reaction: Why GitLab Shares DroppedThe company said more than half of its current revenue base exceeding a $1 billion run rate originated from customers whose initial order was below $5,000. Staples said this supports GitLab’s strategy of acquiring customers early and expanding relationships over time.
Large customer activity also contributed to the quarter’s performance. Ross said deals valued at $500,000 or more rose more than 150% year over year, while public-sector activity “rebounded meaningfully.” The company expects public-sector buying patterns to continue normalizing through the second half of the fiscal year.
GitLab increased account executive capacity by approximately 30% year over year, while productivity per representative improved about 10%, according to Staples. He also said sales attrition improved year over year for the second consecutive quarter.
Dollar-based net retention was 117%, improving sequentially for the first time since 2024. Gross retention remained above 90%. Total remaining performance obligations rose 16% year over year to $1.2 billion. Current RPO increased 20% to $744.7 million. Calculated billings grew 24%, compared with 12% growth in the prior quarter. Flex Adoption and Consumption Strategy A central focus of the call was GitLab Flex, a commercial model that allows customers to make annual or multiyear dollar commitments and allocate spending across Premium and Ultimate seats, GitLab Credits and other consumption-based offerings.
Staples said that in the first six weeks after Flex entered the market, more than 130 customers committed more than $20 million. The company’s paid consumption run rate, or paid CRR, exceeded $40 million at the end of the quarter, up from $15 million at the end of the first quarter. Paid CRR includes Flex commitments, GitLab Credit commitments and paid on-demand consumption, while excluding trials and promotional credits.
GitLab is targeting more than $100 million in paid CRR by the end of fiscal 2027. Management said Flex is intended to reduce contracting and procurement friction, let customers shift spending away from unused capacity and enable on-demand usage beyond a customer’s committed amount.
Ross cautioned that broader Flex adoption will affect how revenue and RPO appear in reported results. Under a traditional self-managed license, approximately 15% of the license is recognized upfront, she said. Under Flex, the license component is recognized over the contract term because customers can change the mix of products they use.
For every $50 million in self-managed renewals that convert to Flex during fiscal 2027, GitLab estimates that approximately $5 million of revenue that otherwise would have been recognized during the year would shift into future periods. The company estimated a maximum potential fiscal 2027 revenue impact of about $13 million from this timing effect. Ross said the change does not affect customer commitments or cash economics, as customers continue to be billed annually upfront.
AI Products and Platform Usage GitLab said artificial intelligence is contributing to usage and product demand. Duo Agent Platform paid CRR grew roughly 50% sequentially, including credit commitments, paid on-demand credits and Flex reservations. One top-20 U.S. commercial bank expanded its AI credit pool nearly tenfold during the quarter, Staples said.
The company also highlighted early adoption of GitLab Orbit, its context graph for the software development lifecycle. More than 2,200 organizations enabled Orbit indexing since the beta opened in June, a 70% increase in four weeks. Customers generated more than 170,000 queries, with roughly 80% of query volume coming from organizations connecting Orbit with external agents such as Cloud Code and Codex.
Staples said GitLab is re-architecting its Git infrastructure to support approximately 100 times the scale historically required by human users, citing the potential for individual engineers to invoke dozens or hundreds of agents. The company also launched Secrets Manager and Dedicated Runners in August and expects its artifact management product, currently in private beta, to enter public beta during the current quarter.
Ultimate ARR grew approximately 35% year over year and represented 59% of total ARR. Eight of GitLab’s 10 largest deals during the quarter involved Ultimate, according to management. GitLab also reported year-over-year increases of 60% in secure repositories, 50% in code pushes and 40% in CI/CD pipelines.
Profitability, Cash and Outlook Non-GAAP gross margin was 86.5%. SaaS revenue represented 34% of total revenue and grew 36% year over year, driven by GitLab Dedicated and Duo, Ross said. The company incurred approximately $23.3 million in restructuring charges during the quarter.
Adjusted free cash flow was $9.8 million, or a 3% margin, which Ross attributed to the timing of collections. GitLab repurchased approximately 3.5 million shares and had about $245 million remaining under its repurchase authorization. It ended the quarter with $1.3 billion in cash and investments.
For the third quarter of fiscal 2027, GitLab forecast revenue of $281 million to $283 million, representing 15% to 16% year-over-year growth. It projected non-GAAP operating income of $35 million to $37 million and non-GAAP earnings per share of $0.19 to $0.20.
For the full fiscal year, the company raised its outlook to revenue of $1.129 billion to $1.133 billion, or growth of approximately 18% to 19%. GitLab expects non-GAAP operating income of $148 million to $152 million and non-GAAP earnings per share of $0.85 to $0.87. The company continues to expect full-year gross margin of 85% to 87% and approximately $50 million in JiHu-related expenses.
About GitLab (NASDAQ:GTLB)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.
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GitLab Inc. (NASDAQ:GTLB) posted its fiscal second-quarter 2027 results after Tuesday’s closing bell, topping analyst estimates and raising its full-year outlook. Here’s a look at the details inside the report.
GTLB stock is moving. Watch the price action here. GitLab reported adjusted/non-GAAP earnings of 24 cents per share 24 cents, which beat the consensus estimate of 18 cents, per Benzinga Pro data.
Quarterly revenue came in at $286.25 million, which beat the Street estimate of $273.12 million and was up from $235.96 million in the same period last year.
GitLab reported the following second-quarter highlights:
First Order growth of more than 100% year-on-year. Customers with more than $5,000 of ARR reached 11,114, an increase of 8% year-over-year. Customers with more than $100,000 of ARR reached 1,571, an increase of 17% year-over-year. Dollar-Based Net Retention Rate was 117%. Total RPO grew 16% year-over-year to $1.2 billion, while cRPO grew 20% to $744.7 million. “Q2 was an exceptional quarter, with record gross bookings and net ARR growth exceeding 40% year over year,” said Bill Staples, GitLab CEO.
“As AI drives more software creation and more work through the development lifecycle, the context, security, governance and control GitLab provides become increasingly valuable,” Staples added.
Read Next
Looking AheadGitLab raised its fiscal 2027 adjusted EPS guidance to between 85 cents and 87 cents, versus the 81 cent analyst estimate, and raised its revenue outlook to between $1.129 billion and $1.133 billion, versus the $1.12 billion estimate.
Trending
GTLB Stock Price: According to data from Benzinga Pro, GitLab stock was up 20.20% to $54.20 in Tuesday’s extended trading.
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GitLab Inc. (GTLB - Free Report) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this company would post earnings of $0.2 per share when it actually produced earnings of $0.23, delivering a surprise of +15%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Gitlab, which belongs to the Zacks Internet - Software industry, posted revenues of $286.25 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.74%. This compares to year-ago revenues of $235.96 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Gitlab shares have added about 24% since the beginning of the year versus the S&P 500's gain of 12.3%.
What's Next for Gitlab?While Gitlab has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Gitlab was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $281.04 million in revenues for the coming quarter and $0.81 on $1.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, UiPath (PATH - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 3.
This enterprise automation software developer is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
UiPath's revenues are expected to be $397.59 million, up 9.9% from the year-ago quarter.
SAN FRANCISCO--(BUSINESS WIRE)--All-Remote–GitLab Inc. (NASDAQ: GTLB), the intelligent orchestration platform for DevSecOps, today reported financial results for its second quarter fiscal year 2027, ended July 31, 2026.
“Q2 was an exceptional quarter, with record gross bookings and net ARR growth exceeding 40% year over year,” said Bill Staples, GitLab Chief Executive Officer. “As AI drives more software creation and more work through the development lifecycle, the context, security, governance and control GitLab provides become increasingly valuable. We believe this creates a significant opportunity for GitLab as humans and agents increasingly build software together.”
“I am proud of our team’s performance, which delivered revenue growth of 21% and continued improvement across the business,” said Jessica Ross, GitLab Chief Financial Officer. “We saw sequential acceleration in dollar-based net retention and meaningful operating leverage, reflecting the strength of our execution and the increasing scalability of our model. These results demonstrate the durability of our growth opportunity and our ability to create long-term value.”
GitLab posted a letter on the Investor Relations section of its website at https://ir.gitlab.com to capture additional information about the company’s strategic investments that are designed to drive durable revenue growth.
Business Highlights:
Introduced a new commercial model with GitLab Flex to give customers one annual commitment covering platform seats, GitLab Credits, and new eligible capabilities as they become available, with monthly reservations that can be reshaped as needs change without contract amendments. Launched GitLab Secrets Manager, which is now available as a usage-based add-on for Premium and Ultimate customers on GitLab.com, to make credentials easier to rotate and less likely to leak while bringing them under the same permissions and audit trail as the code that uses them. Expanded context for AI agents with GitLab Orbit, available in public beta, by connecting code, work items, pipelines, deployments, and production signals into a unified context graph, helping agents respond up to 11x faster with up to 45x fewer hallucinations in internal testing. Recognized as a Leader in the Gartner® Magic Quadrant™ for DevSecOps Platforms1 for the fourth consecutive year, reinforcing the value of a unified platform that gives enterprises speed with control across the software lifecycle. Quantified the potential business value of GitLab Duo Agent Platform through an independent Forrester Consulting Total Economic Impact™ study, which found organizations can achieve a 400% return on investment and $7.5 million in net present value (NPV) over three years, with payback in under six months. Second Quarter Fiscal Year 2027 Financial Highlights (in millions, except per share data and percentages):
Q2 FY 2027
Q2 FY 2026
Y/Y Change
Revenue
$
286.3
$
236.0
21
%
GAAP Gross margin
84
%
88
%
Non-GAAP Gross margin
86
%
90
%
GAAP Operating margin
(20
)%
(8
)%
Non-GAAP Operating margin
15
%
17
%
GAAP Operating loss
$
(56.9
)
$
(18.4
)
$
(38.5
)
Non-GAAP Operating income
$
42.6
$
39.6
$
3.0
GAAP Net loss attributable to GitLab
$
(36.8
)
$
(9.2
)
$
(27.6
)
Non-GAAP Net income attributable to GitLab
$
42.1
$
40.9
$
1.2
GAAP Net loss per share attributable to GitLab, basic
$
(0.22
)
$
(0.06
)
$
(0.16
)
GAAP Net loss per share attributable to GitLab, diluted
$
(0.22
)
$
(0.06
)
$
(0.16
)
Non-GAAP Net income per share attributable to GitLab, basic
$
0.25
$
0.25
$
—
Non-GAAP Net income per share attributable to GitLab, diluted
$
0.24
$
0.24
$
—
GAAP net cash provided by operating activities
$
(3.1
)
$
49.4
$
(52.5
)
Non-GAAP adjusted free cash flow
$
9.8
$
46.5
$
(36.7
)
A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”
Additional Second Quarter Fiscal Year 2027 Financial Highlights:
First Order growth of more than 100% year on year. Customers with more than $5,000 of ARR reached 11,114, an increase of 8% year-over-year. Customers with more than $100,000 of ARR reached 1,571, an increase of 17% year-over-year. Dollar-Based Net Retention Rate was 117%. Total RPO grew 16% year-over-year to $1.2 billion, while cRPO grew 20% to $744.7 million. In the quarter, GitLab repurchased approximately 3.5 million shares. Third Quarter and Fiscal Year 2027 Financial Outlook
For the third quarter and fiscal year 2027, GitLab Inc. expects (in millions, except share and per share data):
Q3 FY 2027 Guidance
FY 2027 Guidance
Revenue
$281 - $283
$1,129 - $1,133
Non-GAAP operating income
$35 - $37
$148 - $152
Non-GAAP diluted net income per share assuming approximately 172 million and 172 million weighted average shares outstanding during Q3 FY 2027 and FY 2027, respectively.
$0.19 - $0.20
$0.85 - $0.87
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating income (loss) and net income (loss) per share to the corresponding GAAP measures is not available.
Conference Call Information
GitLab will host a conference call today, September 1, 2026, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its second quarter fiscal year 2027 financial results and its guidance for the third quarter and full fiscal year 2027. Interested parties may register for the call in advance by visiting https://bit.ly/4qpW4tl. A live webcast of this conference call will be available on GitLab’s investor relations website (ir.gitlab.com), and a replay will also be archived on the website for one year.
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.
Non-GAAP Financial Measures
GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, acquisition related expenses, charitable donation of common stock, restructuring charges, a non-recurring income tax adjustment related to bilateral advance pricing agreement (“BAPA”) negotiations, non-recurring charges associated with the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China (“JiHu”), and other expenses that the Company believes are not indicative of its ongoing operations. In addition to these exclusions, effective Q1 FY26 we utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision which reflects the new location of GitLab’s intellectual property in the U.S. following the conclusion of our bilateral advance pricing agreements. For FY26 and FY27, we have determined the projected non-GAAP tax rate to be 22%. Shares used for net income per share on a non-GAAP basis include incremental dilutive shares related to restricted stock units, options, and shares issuable under GitLab Inc.’s 2021 Employee Stock Purchase Plan that are anti-dilutive on a GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.
Adjusted Free Cash Flow
Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period.
Forward-Looking Statements
This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:
our ability to effectively manage our growth; our revenue growth rate in the future; our ability to achieve and sustain profitability, our business, financial condition, and operating results; security and privacy breaches; intense competition in our markets and loss of market share to our competitors; our ability to respond to rapid technological changes; the market for our services may not grow; a decline in our customer renewals and expansions; fluctuations in our operating results; our incorporation of artificial intelligence features into our products; our transparency; our publicly available company Handbook; customers staying on our free self-managed or SaaS product offering; our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption; our hiring model; the effects of ongoing armed conflict in different regions of the world on our business; and general economic conditions (including changes in interest rates, inflation, tariffs, regulatory uncertainty (including with respect to the federal budget and potential government shutdowns), volatile capital markets, and actual or perceived instability in the global banking sector) and slow or negative growth of our markets. Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.
Operating Metrics
Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.
Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.
GitLab Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(unaudited)
July 31, 2026(1)
January 31, 2026(1)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
226,491
$
229,576
Short-term investments
1,030,495
1,030,327
Accounts receivable, net of allowance for doubtful accounts of $1,018 and $967 as of July 31, 2026 and January 31, 2026, respectively
257,343
304,301
Deferred contract acquisition costs, current
39,588
42,676
Prepaid expenses and other current assets
41,138
48,899
Total current assets
1,595,055
1,655,779
Property and equipment, net
11,093
11,815
Goodwill
17,446
17,379
Intangible assets, net
5,744
9,774
Deferred contract acquisition costs, non-current
27,431
23,705
Other non-current assets
5,063
4,295
TOTAL ASSETS
$
1,661,832
$
1,722,747
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
9,955
$
9,205
Accrued expenses and other current liabilities
51,580
58,185
Accrued compensation and benefits
46,932
39,657
Deferred revenue and customer advances, current
553,844
545,096
Total current liabilities
662,311
652,143
Deferred revenue, non-current
20,829
26,994
Other non-current liabilities
7,205
7,362
TOTAL LIABILITIES
690,345
686,499
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0000025 par value; 50,000 shares authorized; no shares issued and outstanding as of July 31, 2026 and January 31, 2026
—
—
Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized; 166,166 and 153,336 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively
—
—
Class B Common stock, $0.0000025 par value; 250,000 shares authorized; 1,115 and 16,732 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively
—
—
Additional paid-in capital
2,190,455
2,207,361
Accumulated deficit
(1,265,386
)
(1,223,570
)
Accumulated other comprehensive income
460
6,877
Total GitLab stockholders’ equity
925,529
990,668
Noncontrolling interests
45,958
45,580
TOTAL STOCKHOLDERS’ EQUITY
971,487
1,036,248
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,661,832
$
1,722,747
GitLab Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2026
2025
2026
2025
Revenue:
Subscription—self-managed and SaaS
$
258,311
$
212,684
$
497,617
$
407,165
License—self-managed and other
27,943
23,276
52,795
43,304
Total revenue
286,254
235,960
550,412
450,469
Cost of revenue:
Subscription—self-managed and SaaS
38,258
21,753
68,849
41,021
License—self-managed and other
7,380
6,752
14,277
12,519
Total cost of revenue
45,638
28,505
83,126
53,540
Gross profit
240,616
207,455
467,286
396,929
Operating expenses:
Sales and marketing
134,363
109,583
253,721
217,170
Research and development
94,980
71,488
166,462
136,898
General and administrative
68,208
44,735
119,787
95,822
Total operating expenses
297,551
225,806
539,970
449,890
Loss from operations
(56,935
)
(18,351
)
(72,684
)
(52,961
)
Interest income
12,202
11,511
24,149
22,373
Other income (expense), net
5,406
(911
)
5,661
(10,882
)
Loss before income taxes
(39,327
)
(7,751
)
(42,874
)
(41,470
)
Provision for (benefit from) income taxes
(3,195
)
2,245
(1,163
)
4,784
Net loss
$
(36,132
)
$
(9,996
)
$
(41,711
)
$
(46,254
)
Net income (loss) attributable to noncontrolling interest
712
(788
)
105
(1,171
)
Net loss attributable to GitLab
$
(36,844
)
$
(9,208
)
$
(41,816
)
$
(45,083
)
Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted:
$
(0.22
)
$
(0.06
)
$
(0.25
)
$
(0.27
)
Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted:
168,703
165,953
169,313
165,233
GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss, including amounts attributable to noncontrolling interest
$
(36,132
)
$
(9,996
)
$
(41,711
)
$
(46,254
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense, net of amounts capitalized
75,006
54,284
125,067
110,111
Charitable donation of common stock
1,166
1,787
1,987
3,526
Amortization of intangible assets
2,015
2,015
4,030
4,035
Depreciation and amortization
1,345
759
2,640
1,315
Amortization of deferred contract acquisition costs
10,580
13,370
23,504
27,269
Net amortization of premiums or discounts on short-term investments
(364
)
(2,609
)
(688
)
(5,605
)
Unrealized foreign exchange loss (gain), net
(2,249
)
1,069
(3,260
)
10,970
Other non-cash expense, net
451
192
640
400
Changes in assets and liabilities:
Accounts receivable
(57,325
)
3,859
46,031
69,787
Prepaid expenses and other current assets
1,303
1,219
7,690
2,746
Deferred contract acquisition costs
(15,002
)
(12,304
)
(24,747
)
(20,430
)
Other non-current assets
(1,147
)
(198
)
(919
)
181
Accounts payable
1,115
(472
)
762
3,114
Accrued expenses and other current liabilities
(21,419
)
(14,257
)
(6,968
)
(4,278
)
Accrued compensation and benefits
18,575
2,021
7,605
(11,063
)
Deferred revenue and customer advances
18,754
8,284
4,466
9,489
Other non-current liabilities
236
346
(24
)
358
Net cash provided by (used in) operating activities
(3,092
)
49,369
146,105
155,671
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments
(199,621
)
(237,946
)
(421,817
)
(483,898
)
Proceeds from maturities of short-term investments
139,823
184,280
358,647
347,886
Proceeds from sales of short-term investments
50,476
—
60,398
1,367
Additions to property and equipment
(213
)
(2,904
)
(2,606
)
(3,816
)
Net cash used in investing activities
(9,535
)
(56,570
)
(5,378
)
(138,461
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases
2,988
3,947
5,361
7,275
Issuance of common stock under employee stock purchase plan
6,886
8,404
6,886
8,404
Common stock repurchased
(104,637
)
—
(154,685
)
—
Payments for taxes related to net share settlement of equity awards
(748
)
—
(908
)
—
Net cash provided by (used in) financing activities
(95,511
)
12,351
(143,346
)
15,679
Impact of foreign exchange on cash and cash equivalents
(766
)
502
(466
)
833
Net increase (decrease) in cash and cash equivalents
(108,904
)
5,652
(3,085
)
33,722
Cash and cash equivalents at beginning of period
335,395
255,719
229,576
227,649
Cash and cash equivalents at end of period
$
226,491
$
261,371
$
226,491
$
261,371
GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2026
2025
2026
2025
Gross profit on GAAP basis
$
240,616
$
207,455
$
467,286
$
396,929
Gross margin on GAAP basis
84
%
88
%
85
%
88
%
Stock-based compensation expense
3,891
2,261
6,755
4,190
Amortization of acquired intangibles
2,015
2,015
4,030
4,035
Restructuring charges
1,023
—
1,023
—
Gross profit on non-GAAP basis
$
247,545
$
211,731
$
479,094
$
405,154
Gross margin on non-GAAP basis
86
%
90
%
87
%
90
%
Sales and marketing on GAAP basis
$
134,363
$
109,583
$
253,721
$
217,170
Stock-based compensation expense
(25,327
)
(19,950
)
(42,772
)
(42,041
)
Restructuring charges
(5,220
)
—
(5,220
)
—
Sales and marketing on non-GAAP basis
$
103,816
$
89,633
$
205,729
$
175,129
Research and development on GAAP basis
$
94,980
$
71,488
$
166,462
$
136,898
Stock-based compensation expense
(21,803
)
(19,197
)
(35,433
)
(33,469
)
Restructuring charges
(8,011
)
—
(8,011
)
—
Research and development on non-GAAP basis
$
65,166
$
52,291
$
123,018
$
103,429
General and administrative on GAAP basis
$
68,208
$
44,735
$
119,787
$
95,822
Stock-based compensation expense
(23,985
)
(12,876
)
(40,107
)
(30,411
)
Restructuring charges
(5,168
)
—
(5,168
)
—
Charitable donation of common stock
(1,166
)
(1,787
)
(1,987
)
(3,526
)
Acquisition related expenses
(607
)
(157
)
(917
)
(340
)
Other non-recurring charges
(1,285
)
320
(1,361
)
(643
)
General and administrative on non-GAAP basis
$
35,997
$
30,235
$
70,247
$
60,902
Loss from operations on GAAP basis
$
(56,935
)
$
(18,351
)
$
(72,684
)
$
(52,961
)
Stock-based compensation expense
75,006
54,284
125,067
110,111
Amortization of acquired intangibles
2,015
2,015
4,030
4,035
Restructuring charges
19,422
—
19,422
—
Charitable donation of common stock
1,166
1,787
1,987
3,526
Acquisition related expenses
607
157
917
340
Other non-recurring charges
1,285
(320
)
1,361
643
Income from operations on non-GAAP basis
$
42,566
$
39,572
$
80,100
$
65,694
Other income (expense), net on GAAP basis
$
5,406
$
(911
)
$
5,661
$
(10,882
)
Foreign exchange gains (losses), net
(1,817
)
1,117
(2,353
)
11,071
Other non-recurring charges (3)
(3,679
)
172
(3,497
)
342
Other income (expense), net on non-GAAP basis
$
(90
)
$
378
$
(189
)
$
531
Net loss attributable to GitLab common stockholders on GAAP basis
$
(36,844
)
$
(9,208
)
$
(41,816
)
$
(45,083
)
Stock-based compensation expense (2)
75,006
54,284
125,067
110,111
Amortization of acquired intangibles
2,015
2,015
4,030
4,035
Restructuring charges (1)
19,422
—
19,422
—
Charitable donation of common stock
1,166
1,787
1,987
3,526
Acquisition related expenses
607
157
917
340
Foreign exchange gains (losses), net
(1,817
)
1,117
(2,353
)
11,071
Income tax adjustment (4)
(15,068
)
(9,077
)
(24,034
)
(14,708
)
Other non-recurring charges (3)
(2,394
)
(148
)
(2,136
)
985
Net income attributable to GitLab common stockholders on non-GAAP basis
$
42,093
$
40,927
$
81,084
$
70,277
GAAP net loss per share, basic
$
(0.22
)
$
(0.06
)
$
(0.25
)
$
(0.27
)
GAAP net loss per share, diluted
$
(0.22
)
$
(0.06
)
$
(0.25
)
$
(0.27
)
Non-GAAP net income per share, basic
$
0.25
$
0.25
$
0.48
$
0.43
Non-GAAP net income per share, diluted
$
0.24
$
0.24
$
0.47
$
0.41
Shares used in per share calculation - basic on GAAP basis
168,703
165,953
169,313
165,233
Effect of dilutive securities
5,246
4,535
3,151
5,220
Shares used in per share calculation - diluted on non-GAAP basis
173,949
170,488
172,464
170,453
GitLab Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Adjusted Free Cash Flow
(in thousands)
(unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2026
2025
2026
2025
Computation of adjusted free cash flow
GAAP net cash provided by (used in) operating activities
$
(3,092
)
$
49,369
$
146,105
$
155,671
Less: Additions to property and equipment
(213
)
(2,904
)
(2,606
)
(3,816
)
Add: Non-recurring payments related to the formation of JiHu
Beacon Pointe Advisors LLC raised its holdings in shares of GitLab Inc. (NASDAQ:GTLB – Free Report) by 119.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 23,396 shares of the company’s stock after purchasing an additional 12,751 shares during the quarter. Beacon Pointe Advisors LLC’s holdings in GitLab were worth $714,000 as of its most recent filing with the Securities & Exchange Commission.
Other large investors have also recently modified their holdings of the company. Allworth Financial LP boosted its stake in shares of GitLab by 124.1% during the 3rd quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after purchasing an additional 309 shares during the period. Quarry LP purchased a new stake in GitLab in the 3rd quarter worth about $31,000. Fifth Third Bancorp lifted its stake in GitLab by 220.6% in the first quarter. Fifth Third Bancorp now owns 1,603 shares of the company’s stock worth $35,000 after purchasing an additional 1,103 shares during the last quarter. Larson Financial Group LLC lifted its stake in GitLab by 92.7% in the third quarter. Larson Financial Group LLC now owns 1,000 shares of the company’s stock worth $45,000 after purchasing an additional 481 shares during the last quarter. Finally, Advisory Services Network LLC purchased a new position in shares of GitLab during the third quarter valued at approximately $48,000. Institutional investors own 95.04% of the company’s stock.
Insider Activity at GitLab In other GitLab news, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction on 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 of the company’s stock, valued at approximately $423,814,330.44. This trade represents a 0.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Simon Mundy sold 8,725 shares of GitLab stock in a transaction on Friday, August 7th. The shares were sold at an average price of $38.00, for a total value of $331,550.00. Following the completion of the transaction, the chief accounting officer owned 105,332 shares in the company, valued at $4,002,616. This represents a 7.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 10.64% of the company’s stock.
GitLab Trading Up 3.7% GTLB opened at $46.54 on Tuesday. GitLab Inc. has a 12-month low of $18.73 and a 12-month high of $52.38. The business’s fifty day simple moving average is $35.70 and its 200-day simple moving average is $28.72. The company has a market capitalization of $7.86 billion, a price-to-earnings ratio of -290.88 and a beta of 0.94. GitLab (NASDAQ:GTLB – Get Free Report) last released its quarterly earnings data on Tuesday, June 2nd. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.03. GitLab had a positive return on equity of 0.31% and a negative net margin of 2.49%.The firm had revenue of $264.16 million during the quarter, compared to the consensus estimate of $254.23 million. During the same period in the previous year, the company posted $0.17 earnings per share. The firm’s quarterly revenue was up 23.2% on a year-over-year basis. On average, equities research analysts predict that GitLab Inc. will post -0.18 EPS for the current year.
Analyst Upgrades and Downgrades A number of research analysts have recently commented on GTLB shares. DA Davidson upped their target price on GitLab from $35.00 to $45.00 and gave the company a “neutral” rating in a research note on Monday. Weiss Ratings upgraded GitLab from a “sell (d-)” rating to a “sell (d)” rating in a report on Friday, August 14th. Guggenheim reaffirmed a “neutral” rating on shares of GitLab in a research report on Wednesday, August 19th. BTIG Research lifted their target price on GitLab from $36.00 to $52.00 and gave the stock a “buy” rating in a research report on Monday. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of GitLab in a research note on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eighteen have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $42.25.
Check Out Our Latest Research Report on GTLB
GitLab 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.
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GitLab Inc. (NASDAQ:GTLB) will release its second quarter earnings report after the closing bell on Tuesday, Sept. 1.
Analysts expect the San Francisco, California-based company to report quarterly earnings of 18 cents per share, down from 24 cents per share in the year-ago period. The consensus estimate for GitLab’s quarterly revenue is $273.36 million. It reported $235.96 million last year, according to Benzinga Pro.
On June 10, GitLab expanded its partnership with Alphabet Inc.’s (NASDAQ:GOOGL) Google Cloud by launching a fully managed GitLab offering designed for enterprises with strict data sovereignty and compliance requirements.
Shares of GitLab rose 3.7% to close at $46.54 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Cantor Fitzgerald analyst Jonathan Ruykhaver maintained a Neutral rating and increased the price target from $35 to $50 on Aug. 31, 2026. This analyst has an accuracy rate of 74%. BTIG analyst Nick Altmann maintained a Buy rating and raised the price target from $36 to $52 on Aug. 31, 2026. This analyst has an accuracy rate of 65%. TD Cowen analyst Derrick Wood maintained a Hold rating and raised the price target from $29 to $42 on Aug. 27, 2026. This analyst has an accuracy rate of 71%. JP Morgan analyst Brian Essex maintained a Neutral rating and boosted the price target from $32 to $44 on Aug. 26, 2026. This analyst has an accuracy rate of 66%. Wells Fargo analyst Ryan Macwilliams maintained an Equal-Weight rating and boosted the price target from $26 to $40 on Aug. 25, 2026. This analyst has an accuracy rate of 67%. Trending
Considering buying GTLB stock? Here’s what analysts think:
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Wall Street analysts expect GitLab Inc. (GTLB - Free Report) to post quarterly earnings of $0.18 per share in its upcoming report, which indicates a year-over-year decline of 25%. Revenues are expected to be $273.3 million, up 15.8% from the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Gitlab metrics that are routinely monitored and predicted by Wall Street analysts.
It is projected by analysts that the 'Revenue- License-self-managed and other' will reach $25.76 million. The estimate suggests a change of +10.7% year over year.
Analysts predict that the 'Revenue- Subscription-self-managed and SaaS' will reach $247.31 million. The estimate points to a change of +16.3% from the year-ago quarter.
Analysts' assessment points toward 'Revenue- SaaS' reaching $91.50 million. The estimate indicates a change of +27% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- License-self-managed' of $20.60 million. The estimate points to a change of +13.5% from the year-ago quarter.
Analysts expect 'Revenue- Subscription-self-managed' to come in at $154.68 million. The estimate suggests a change of +10% year over year.
The average prediction of analysts places 'Revenue- Professional services and other' at $6.26 million. The estimate indicates a change of +21.9% from the prior-year quarter.
View all Key Company Metrics for Gitlab here>>>
Over the past month, Gitlab shares have recorded returns of +21.4% versus the Zacks S&P 500 composite's +3.7% change. Based on its Zacks Rank #3 (Hold), GTLB will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways GitLab expects Q2 revenues of $272-$274 million, with non-GAAP earnings of 17-18 cents per share. Cloud demand is rising, with SaaS revenue up 37% and code pushes across paid customers up 49%. GitLab Duo Agent Platform neared $20 million in paid consumption run rate after its first full quarter GitLab (GTLB - Free Report) is set to release its second-quarter fiscal 2027 results on Sept. 1, 2026.
For the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million. Non-GAAP earnings for the fiscal second quarter are expected to be between 17 cents and 18 cents per share.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $273.30 million, representing a 15.82% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 18 cents per share over the past 30 days. GitLab reported earnings of 24 cents per share in the year-ago quarter.
GTLB beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 30.11%.
Let us see how things have shaped up for the upcoming announcement.
Key Factors to NoteGitLab’s fiscal second-quarter performance is expected to have benefited from continued strength in its enterprise DevSecOps business, rising customer adoption and expanding demand for AI-enabled software development. In the first quarter of fiscal 2027, revenues rose 23% year over year to $264 million, while customers generating more than $100,000 in annual recurring revenue increased 18% to 1,519. Dollar-based net retention stood at 117%. Gross bookings growth also reached its highest level in four quarters. New-logo growth increased 30% year over year, supported by product-led growth and expanding sales capacity.
Rising demand for GitLab’s cloud offerings is expected to have benefited the GTLB’s to-be-reported quarter’s performance. GitLab Dedicated surpassed $70 million in annual recurring revenue, while SaaS revenues increased 37% year over year in the first quarter of fiscal 2027. Platform activity remained strong, with code pushes across paid SaaS customers increasing 49% year over year and CI pipeline growth accelerating to 38% in April 2026. The company’s cloud-neutral architecture and platform reliability could further help it capture enterprise demand as AI workloads increase infrastructure requirements.
The company is also likely to benefit from increasing adoption of GitLab Duo Agent Platform (DAP). DAP generated nearly $20 million in paid consumption run rate at the end of its first full quarter, while its fiscal first-quarter net ARR contribution exceeded the combined contribution of Duo Pro and Duo Enterprise in any prior quarter. The company expanded collaborations with AWS and Google Cloud so customers can power DAP with Amazon Bedrock or Vertex AI, aligning spend with existing cloud commitments.
However, intense competition, seat contraction in price-sensitive cohorts and execution risk as GitLab reduces headcount and exits certain countries are expected to have affected the company’s to-be-reported quarter’s performance.
What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
GTLB currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have gained 275.1% in the year-to-date period. Dell Technologies is set to report second-quarter fiscal 2027 results on Sept. 1.
Docusign (DOCU - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #2.
Shares of Docusign have plunged 6.8% year to date. Docusign is set to report the second-quarter fiscal 2027 results on Sept. 3.
Hewlett-Packard (HPE - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank #2 at present.
Shares of Hewlett-Packard have rallied 126.5% year to date. Hewlett-Packard is slated to report fiscal third-quarter 2026 results on Sept. 2.
SAN FRANCISCO--(BUSINESS WIRE)--(All Remote)--GitLab Inc., the intelligent orchestration platform for DevSecOps, today announced updates that give enterprises more control as they scale agentic software development. GitLab Dedicated customers, who already run their most sensitive software delivery workloads on GitLab, can now run GitLab Duo Agent Platform inside that same single tenant environment and region, connect their own models for inference, and keep AI-processed data inside their existi.
Bank of America Corp DE grew its holdings in GitLab Inc. (NASDAQ:GTLB – Free Report) by 55.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,955,648 shares of the company’s stock after buying an additional 696,096 shares during the period. Bank of America Corp DE owned 1.15% of GitLab worth $42,320,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Allworth Financial LP increased its holdings in shares of GitLab by 124.1% during the 3rd quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after acquiring an additional 309 shares during the last quarter. Quarry LP acquired a new stake in GitLab during the 3rd quarter valued at $31,000. Larson Financial Group LLC boosted its position in GitLab by 92.7% during the third quarter. Larson Financial Group LLC now owns 1,000 shares of the company’s stock worth $45,000 after purchasing an additional 481 shares during the period. Advisory Services Network LLC bought a new position in GitLab during the third quarter worth $48,000. Finally, Fifth Third Bancorp increased its holdings in shares of GitLab by 220.6% in the first 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 institutional investors.
Wall Street Analyst Weigh In Several analysts recently commented on GTLB shares. Wolfe Research reaffirmed an “outperform” rating and set a $36.00 target price on shares of GitLab in a report on Wednesday, June 3rd. Mizuho increased their price target on shares of GitLab from $26.00 to $28.00 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. Bank of America restated a “neutral” rating on shares of GitLab in a research report on Wednesday, June 3rd. Cantor Fitzgerald boosted their price objective on GitLab from $27.00 to $35.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Finally, BTIG Research reaffirmed a “buy” rating and issued a $36.00 target price on shares of GitLab in a research report on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $36.58.
Read Our Latest Stock Report on GitLab
Insider Buying and Selling In related news, CAO Simon Mundy sold 8,725 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $38.00, for a total transaction of $331,550.00. Following the sale, the chief accounting officer owned 105,332 shares of the company’s stock, valued at $4,002,616. This represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $28.44, for a total value of $3,304,728.00. Following the transaction, the director owned 14,902,051 shares in the company, valued at approximately $423,814,330.44. This trade represents a 0.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 241,125 shares of company stock worth $6,523,848 in the last three months. 10.64% of the stock is currently owned by company insiders.
GitLab Stock Up 6.2% NASDAQ GTLB opened at $43.35 on Friday. The company has a market capitalization of $7.32 billion, a P/E ratio of -270.94 and a beta of 0.94. GitLab Inc. has a 12-month low of $18.73 and a 12-month high of $52.38. The firm has a 50-day moving average price of $32.23 and a two-hundred day moving average price of $28.01.
GitLab (NASDAQ:GTLB – Get Free Report) last announced its earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $254.23 million. During the same quarter in the prior year, the business posted $0.17 EPS. The business’s revenue was up 23.2% compared to the same quarter last year. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. Equities analysts expect that GitLab Inc. will post -0.18 EPS for the current 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.
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Simon Mundy, Chief Accounting Officer, reported a sale of 8,725 shares of GitLab Inc. (GTLB -2.03%) on August 7, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold8,725Transaction value$331,550Post-transaction shares (directly held)105,332Post-transaction value$4.10 millionTransaction value based on SEC Form 4 weighted average sale price ($38.00); post-transaction value based on August 07, 2026 market close ($38.97).
Key questionsWhat was the structural context of this sale?
The disposition was executed under a Rule 10b5-1 plan adopted more than 13 months prior to the trade date, ensuring the timing was determined by pre-set parameters rather than immediate market sentiment.How significant is the remaining equity position?
Following the sale, Mundy maintains a direct stake of 105,332 shares, which includes Class A Common Stock that has not yet vested, representing a $4.1 million market value as of the August 7, 2026 close.What is the company's financial profile as of the transaction date?
As of the August 10, 2026 market close, the company maintains a market capitalization of $6.9 billion, supported by trailing twelve-month revenue (TTM) of $1.0 billion and a net income loss of $27.9 million.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$40.73Market Capitalization$6.9 billionRevenue (TTM)$1.0 billionNet Income (TTM)-$25.1 millionCompany SnapshotGitLab Inc. develops and delivers a unified DevOps platform that enables organizations to manage the entire software development lifecycle through a single integrated application, with revenue generated through subscription-based licensing and professional services.The company operates a subscription-based SaaS business model, providing cloud-hosted and self-managed deployment options that generate recurring revenue from development teams and enterprises seeking to streamline their DevOps workflows.GitLab serves software development organizations globally, including enterprises and mid-market companies across the United States, Europe, and the Asia Pacific regions that require comprehensive DevOps solutions to accelerate development cycles and improve operational visibility.
Today's Change
(
-2.03
%) $
-0.86
Current Price
$
41.25
GitLab Inc. is a $6.9 billion market capitalization software company with 2,580 employees headquartered in San Francisco. The company has achieved $1.0 billion in TTM revenue while operating at a net loss of $25.1 million, reflecting its growth-stage investment posture.
GitLab's competitive advantage derives from its unified platform approach that consolidates fragmented DevOps toolchains into a single application, enabling customers to reduce tool sprawl and accelerate software delivery cycles.
What this transaction means for investorsInvestors shouldn’t be concerned about this sale. It represented a small percentage of the executive’s holdings in the company’s stock. Mundy still holds a $4 million stake in GitLab.
Moreover, the sale was completed under a Rule 10b5-1 plan. This is routinely used by insiders to execute transactions without the appearance of acting on any material non-public information about the company.
Importantly, GitLab is doing fine. TTM revenue grew a solid 25% year over year. While it’s still reporting an operating loss, that loss is gradually narrowing as the business scales. TTM operating loss was -$51.6 million compared to the wider loss of -$70.5 million in the year-ago period.
The improvement in the financial results shows a disconnect with the stock’s recent performance. However, the stock still seems expensive. The forward P/E is quite rich at 50x consensus earnings estimates, while analysts are projecting around 15% annualized earnings growth in the next two years.
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends GitLab. The Motley Fool has a disclosure policy.
On August 10, 2026, GitLab Inc (GTLB) shares rose 4.5% to a current price of $40.73, reflecting a significant increase in recent weeks amid a 52-week range of $
Bessemer Group Inc. cut its holdings in GitLab Inc. (NASDAQ:GTLB – Free Report) by 69.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 10,675 shares of the company’s stock after selling 23,720 shares during the period. Bessemer Group Inc.’s holdings in GitLab were worth $231,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds also recently modified their holdings of GTLB. Huntington National Bank increased its position in shares of GitLab by 118.9% during the 4th quarter. Huntington National Bank now owns 320,660 shares of the company’s stock valued at $12,034,000 after purchasing an additional 174,200 shares during the last quarter. ABN Amro Investment Solutions purchased a new position in shares of GitLab in the 4th quarter worth about $2,420,000. Coronation Fund Managers Ltd. boosted its holdings in shares of GitLab by 18.3% in the 4th quarter. Coronation Fund Managers Ltd. now owns 717,483 shares of the company’s stock worth $26,927,000 after buying an additional 110,926 shares during the last quarter. Madison Asset Management LLC bought a new position in GitLab during the fourth quarter valued at about $2,265,000. Finally, Niles Investment Management LLC bought a new position in GitLab during the fourth quarter valued at about $3,983,000. 95.04% of the stock is owned by hedge funds and other institutional investors.
GitLab Stock Performance Shares of NASDAQ:GTLB opened at $31.28 on Monday. The company has a 50 day moving average of $29.79 and a 200 day moving average of $27.85. The stock has a market cap of $5.28 billion, a P/E ratio of -195.50 and a beta of 0.96. GitLab Inc. has a 12 month low of $18.73 and a 12 month high of $52.38.
GitLab (NASDAQ:GTLB – Get Free Report) last posted its earnings results on Tuesday, June 2nd. The company reported $0.23 earnings per share (EPS) 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 business had revenue of $264.16 million for the quarter, compared to analysts’ expectations of $254.23 million. During the same period in the prior year, the company posted $0.17 EPS. The business’s revenue for the quarter was up 23.2% compared to the same quarter last year. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. On average, equities analysts forecast that GitLab Inc. will post -0.18 earnings per share for the current fiscal year.
Insider Buying and Selling In related news, Director Sytse Sijbrandij sold 116,200 shares of the business’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 completion of the transaction, the director directly owned 14,902,051 shares in the company, valued at $423,814,330.44. The trade was a 0.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is currently owned by insiders.
Analyst Ratings Changes GTLB has been the subject of a number of research analyst reports. UBS Group raised their price objective on shares of GitLab from $32.00 to $35.00 and gave the stock a “neutral” rating in a report on Friday, July 10th. Sanford C. Bernstein reissued an “outperform” rating on shares of GitLab in a research report on Monday, June 29th. BTIG Research reissued a “buy” rating and set a $36.00 target price on shares of GitLab in a research report on Thursday, June 11th. TD Cowen restated a “hold” rating and set a $29.00 price target on shares of GitLab in a research note on Wednesday, June 3rd. Finally, DA Davidson lifted their price target on shares of GitLab from $24.00 to $35.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seventeen have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $36.58.
Check Out Our Latest Stock Analysis on GitLab
GitLab 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.
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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.
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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.
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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.
