Shares of GitLab Inc (NASDAQ:GTLB) are deep in the red this morning, off 10% at $43.68, after software company's disappointing second quarter and full-year guidance overshadowed a first-quarter earnings beat.
Although the revenue and EPS for Gitlab (GTLB) give a sense of how its business performed in the quarter ended April 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
GitLab Inc. (NASDAQ:GTLB ) Q1 2026 Earnings Conference Call June 10, 2025 4:30 PM ET Company Participants Brian G. Robins - CFO & Interim Chief Accounting Officer Kelsey Doherty Turcotte - Vice President of Investor Relations William Staples - CEO & Director Conference Call Participants Adam Tyler Tindle - Raymond James & Associates, Inc., Research Division Gray Wilson Powell - BTIG, LLC, Research Division James Derrick Wood - TD Cowen, Research Division Jason Noah Ader - William Blair & Company L.L.C.
GitLab Inc. (GTLB) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.03 per share a year ago.
GTLB's first-quarter fiscal 2026 performance is likely to have benefited from rising enterprise adoption and continued momentum in AI-driven DevSecOps innovation.
GitLab (NASDAQ:GTLB), a firm that offers tools to assist teams in managing their software development lifecycle, is anticipated to release its Q1 results on June 10. Consensus forecasts indicate revenues nearing $213 million for the quarter, marking a 26% increase compared to the previous year, while earnings are estimated to be around $0.15 per share, nearly 5 times higher than last year.
We initiate coverage on GitLab with a Strong Buy rating driven by underappreciated AI monetization flywheel and accelerating adoption of premium Ultimate and Dedicated modules. Our PT of $125 per share is based on a 15.5x EV/Sales multiple to our FY27 revenue estimate of $1.3bn with justified premium to peers. We estimate FY27 revenue of $1.27bn, or up 25% y/y and +8-10% consensus, fueled by compounding monetization levers.
GTLB eyes a rebound in its shares as strong AI capabilities, cloud integrations, and DevSecOps leadership fuel enterprise adoption and long-term growth.
GitLab offers a compelling high-risk, high-reward opportunity for investors seeking to move up the Efficient Frontier in their portfolios. The company stands out for its deep AI integration, strong customer traction, and growing adoption of its premium subscription tier. Though management gave conservative guidance for FY '26, anecdotal evidence suggests the company is performing very well.
GitLab Inc. (GTLB) deserves a buy rating due to its strong growth outlook, despite recent share price declines not reflecting fundamental weaknesses. The enterprise upsell engine is strengthening, with the Ultimate tier now accounting for 50% of total ARR, showing significant traction with large customers. GTLB's Dedicated SaaS offering is gaining momentum, growing 90% y/y, driven by demand from sectors with strict security and compliance needs.
GTLB shares decline due to macro pressures and competition, but AI-driven DevSecOps adoption and key partnerships are promising.
A number of high-flying growth stocks have come back down to earth following the recent market pullback. Let's look at two that investors can consider buying this year, especially if the market once again starts to head lower.