GitLab (NASDAQ:GTLB – Get Free Report) issued an update on its second quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.170-0.180 for the period, compared to the consensus estimate of 0.130. The company issued revenue guidance of $272.0 million-$274.0 million, compared to the consensus revenue estimate of $273.4 million.
Analyst Upgrades and Downgrades
GTLB has been the subject of a number of research analyst reports. Bank of America reaffirmed a “neutral” rating on shares of GitLab in a report on Wednesday. Canaccord Genuity Group lowered their price target on GitLab from $70.00 to $40.00 and set a “buy” rating for the company in a report on Wednesday, March 4th. Barclays lowered their price target on GitLab from $29.00 to $25.00 and set an “underweight” rating for the company in a report on Wednesday, March 4th. Mizuho upped their price target on GitLab from $26.00 to $28.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of GitLab in a report on Tuesday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nineteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $37.81.
Read Our Latest Analysis on GitLab
GitLab Stock Performance
GitLab (NASDAQ:GTLB – Get Free Report) last posted its quarterly earnings data on Tuesday, June 2nd. The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.03. The business had revenue of $264.16 million for the quarter, compared to analyst estimates of $254.23 million. GitLab had a positive return on equity of 0.32% and a negative net margin of 2.49%.The business’s revenue for the quarter was up 23.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.17 earnings per share. GitLab has set its Q2 2027 guidance at 0.170-0.180 EPS. As a group, sell-side analysts forecast that GitLab will post -0.33 EPS for the current fiscal year.
Insider Transactions at GitLab
In other GitLab news, Director Matthew Jacobson sold 700,109 shares of the firm’s stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $22.95, for a total transaction of $16,067,501.55. Following the completion of the sale, the director owned 325 shares in the company, valued at $7,458.75. This trade represents a 99.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $24.85, for a total value of $2,887,570.00. Following the sale, the director owned 15,018,251 shares of the company’s stock, valued at approximately $373,203,537.35. This trade represents a 0.77% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,392,308 shares of company stock worth $31,654,249. Company insiders own 10.64% of the company’s stock.
Key GitLab News
Here are the key news stories impacting GitLab this week:
- Positive Sentiment: GitLab delivered a Q1 beat on both earnings and revenue, with revenue up 23.2% year over year, and management raised fiscal 2027 guidance above Wall Street expectations, which signals improving demand and execution.
- Positive Sentiment: Several analysts turned more constructive after the report, including BTIG, Needham, and DA Davidson, and JPMorgan lifted its price target to $32 while DA Davidson raised its target to $35, suggesting increased confidence in the stock’s upside.
- Positive Sentiment: Unusually large call-option volume indicates traders are positioning for a bigger move higher, often a sign of speculation around near-term catalysts.
- Neutral Sentiment: GitLab also highlighted traction in its AI-related products, including the GitLab Duo Agent Platform, which could support longer-term growth but is still early in commercialization.
- Negative Sentiment: Despite the strong results, the stock fell after GitLab announced a restructuring plan that includes cutting about 14% of its workforce and exiting 22 countries, which investors may view as evidence of cost pressure and strategic disruption.
- Negative Sentiment: TD Cowen kept a Hold rating and set a $29 target, signaling some caution even after the earnings beat and helping cap enthusiasm around the shares.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. raised its stake in GitLab by 1.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 776,521 shares of the company’s stock valued at $36,496,000 after acquiring an additional 12,200 shares in the last quarter. Woodline Partners LP bought a new stake in GitLab during the 1st quarter valued at $314,000. Russell Investments Group Ltd. raised its stake in GitLab by 31.6% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,112 shares of the company’s stock valued at $321,000 after acquiring an additional 1,709 shares in the last quarter. California Public Employees Retirement System raised its stake in GitLab by 17.0% during the 2nd quarter. California Public Employees Retirement System now owns 167,870 shares of the company’s stock valued at $7,573,000 after acquiring an additional 24,448 shares in the last quarter. Finally, State Street Corp raised its stake in GitLab by 7.0% during the 2nd quarter. State Street Corp now owns 2,283,597 shares of the company’s stock valued at $103,013,000 after acquiring an additional 148,713 shares in the last quarter. Institutional investors and hedge funds own 95.04% of the company’s stock.
GitLab Company Profile
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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