GitLab (NASDAQ:GTLB – Get Free Report) issued an update on its FY 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.850-0.870 for the period, compared to the consensus EPS estimate of 0.610. The company issued revenue guidance of $1.1 billion-$1.1 billion, compared to the consensus revenue estimate of $1.1 billion. GitLab also updated its Q3 2027 guidance to 0.190-0.200 EPS.
GitLab Stock Up 10.0%
NASDAQ:GTLB opened at $49.59 on Thursday. The firm has a market cap of $8.38 billion, a PE ratio of -154.96 and a beta of 0.99. The company’s 50-day moving average price is $36.49 and its two-hundred day moving average price is $28.97. GitLab has a 12 month low of $18.73 and a 12 month high of $55.55.
GitLab (NASDAQ:GTLB – Get Free Report) last posted its earnings results on Tuesday, September 1st. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.06. The company had revenue of $286.25 million during the quarter, compared to analysts’ expectations of $273.13 million. GitLab had a negative net margin of 4.99% and a negative return on equity of 1.26%. GitLab’s quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.24 earnings per share. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. On average, research analysts expect that GitLab will post -0.18 EPS for the current fiscal year.
Wall Street Analyst Weigh In
Get Our Latest Stock Analysis on GTLB
Insider Activity at GitLab
In related news, CAO Simon Mundy sold 8,725 shares of the business’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $38.00, for a total transaction of $331,550.00. Following the completion of the sale, the chief accounting officer directly owned 105,332 shares of the company’s stock, valued at $4,002,616. The trade was a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were 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 owned 14,902,051 shares in the company, valued at $423,814,330.44. This represents a 0.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.64% of the stock is owned by insiders.
GitLab News Summary
Here are the key news stories impacting GitLab this week:
- Positive Sentiment: Quarterly results exceeded expectations. GitLab reported adjusted EPS of $0.24 versus the $0.18 consensus estimate, while revenue rose 21.3% year over year to approximately $286.3 million, ahead of forecasts near $273 million. GitLab Inc. Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: AI and consumption-based pricing are gaining traction. Paid Flex consumption exceeded $40 million, net annual recurring revenue growth surpassed 40%, and management said agentic AI products are increasing the value of GitLab’s DevSecOps platform. Investors viewed the results as evidence that AI could expand demand for developer tools rather than displace them. Why GitLab Stock Jumped Today
- Positive Sentiment: GitLab raised its earnings outlook. Fiscal 2027 adjusted EPS guidance was set at $0.85-$0.87, well above the prior consensus of $0.61. Third-quarter EPS guidance of $0.19-$0.20 also exceeded the $0.12 consensus, signaling improved sales execution and operating leverage. GTLB Q2 Earnings Call Puts Flex, AI and Sales Momentum in Focus
- Positive Sentiment: Several analysts lifted price targets. Needham raised its target to $65, RBC to $60, Baird to $59, and Rosenblatt to $55. These revisions reflect greater confidence in AI monetization, enterprise demand, and the company’s improved outlook.
- Neutral Sentiment: Options activity was unusually elevated. Investors purchased 28,069 call options, roughly three times typical volume, indicating strong speculative interest but also the potential for heightened volatility. GitLab Target of Unusually High Options Trading
- Negative Sentiment: Post-earnings profit-taking pressured the stock. Despite the earnings beat, GitLab fell sharply after hours, erasing roughly $900 million in market value. The reaction likely reflects elevated expectations after the recent rally and concerns that the company’s valuation leaves limited room for further upside. GitLab Drops After Earnings
- Negative Sentiment: Analyst sentiment remains cautious. TD Cowen maintained a Hold rating, while UBS, Mizuho, Wells Fargo, Piper Sandler, and others retained neutral or equal-weight views. Barron’s also warned investors against chasing the rally.
Hedge Funds Weigh In On GitLab
Several institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC increased its stake in GitLab by 766.3% in the fourth quarter. AQR Capital Management LLC now owns 5,433,375 shares of the company’s stock valued at $203,915,000 after purchasing an additional 4,806,163 shares in the last quarter. Atreides Management LP lifted its holdings in GitLab by 867.3% during the second quarter. Atreides Management LP now owns 3,938,198 shares of the company’s stock worth $177,652,000 after acquiring an additional 3,531,070 shares in the last quarter. FIL Ltd bought a new stake in shares of GitLab in the fourth quarter worth about $36,460,000. Carmignac Gestion raised its position in shares of GitLab by 95.5% during the fourth quarter. Carmignac Gestion now owns 1,310,000 shares of the company’s stock worth $49,164,000 after purchasing an additional 640,000 shares during the period. Finally, Manchester Global Management UK Ltd bought a new position in shares of GitLab during the 2nd quarter valued at about $26,254,000. 95.04% of the stock is currently owned by institutional investors and hedge funds.
About GitLab
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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