GitLab (NASDAQ:GTLB) Posts Earnings Results, Beats Expectations By $0.03 EPS

GitLab (NASDAQ:GTLB) issued its earnings results on Tuesday. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.03, FiscalAI reports. GitLab had a negative net margin of 5.86% and a negative return on equity of 1.73%. The firm had revenue of $264.16 million for the quarter, compared to analysts’ expectations of $254.23 million. During the same quarter last year, the business earned $0.17 earnings per share. The business’s revenue was up 23.2% on a year-over-year basis. GitLab updated its Q2 2027 guidance to 0.170-0.180 EPS.

Here are the key takeaways from GitLab’s conference call:

• Q1 results topped expectations, with revenue of $264 million, up 23% year over year, and non-GAAP operating income of $38 million at a 14% margin. GitLab also reported 1,519 customers paying more than $100,000 annually, up 18% year over year, and DNRR of 117%.
• Enterprise demand remained resilient, highlighted by strong gross bookings, rising first-order activity, and continued growth in GitLab Dedicated, which crossed $70 million in ARR. Management said the core DevSecOps business and large-customer cohort continue to perform well despite macro pressure.
• GitLab is leaning into AI monetization as Duo Agent Platform showed an early strong start, generating more net new ARR in its first quarter than Duo Pro and Duo Enterprise had in any prior quarter combined. Management said it is shifting Duo subscriptions toward a consumption-based model and will introduce GitLab Flex to mix seats and credits.
• Management remains cautious on the macro environment, citing pressure in the price-sensitive cohort, more seat contraction tied to layoffs, M&A-related churn, and potential near-term disruption from the restructuring. The company also said it is assuming no material FY2027 revenue contribution from Duo Agent Platform yet.
• GitLab raised full-year guidance to $1.112 billion-$1.118 billion in revenue and $135 million-$141 million in non-GAAP operating income, while maintaining strong gross margins and cash generation. The company ended Q1 with $1.36 billion in cash and investments and plans to reinvest restructuring savings into product, people, and AI-related initiatives.

GitLab Trading Down 5.8%

Shares of GitLab stock opened at $31.82 on Wednesday. GitLab has a 12-month low of $18.73 and a 12-month high of $52.38. The company has a market cap of $5.41 billion, a P/E ratio of -90.91 and a beta of 0.96. The company’s fifty day simple moving average is $23.30 and its two-hundred day simple moving average is $30.43.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on GTLB. UBS Group cut shares of GitLab from a “buy” rating to a “neutral” rating and dropped their price target for the company from $44.00 to $24.00 in a research report on Thursday, April 16th. Needham & Company LLC restated a “buy” rating and issued a $32.00 price objective on shares of GitLab in a research report on Monday, April 13th. Bank of America reiterated a “neutral” rating on shares of GitLab in a report on Wednesday. BTIG Research cut their target price on GitLab from $32.00 to $30.00 and set a “buy” rating on the stock in a research note on Wednesday, March 4th. Finally, Royal Bank Of Canada restated a “sector perform” rating on shares of GitLab in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eighteen have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, GitLab currently has a consensus rating of “Hold” and an average target price of $37.08.

More GitLab News

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab beat first-quarter fiscal 2027 expectations, reporting $0.23 in adjusted EPS versus $0.20 expected and revenue of $264.2 million versus $254.2 million expected, with sales up 23.2% year over year. GitLab earnings report and transcript
• Positive Sentiment: Management issued second-quarter fiscal 2027 guidance above Wall Street expectations, with EPS guidance of $0.17-$0.18 versus $0.13 consensus and revenue guidance of $272 million-$274 million around consensus. GitLab Q1 fiscal 2027 financial results
• Positive Sentiment: Rosenblatt Securities reiterated a Buy rating and set a $43 price target, reinforcing a bullish Wall Street view after the report. Rosenblatt Securities rating update
• Neutral Sentiment: Investors also appeared to position ahead of earnings, with unusually heavy call-option activity suggesting speculation around the results rather than a fundamental change. Pre-earnings positioning
• Negative Sentiment: GitLab said it will cut about 14% of its workforce, or roughly 350 employees, and exit 22 countries as part of an AI-focused restructuring, which may signal near-term execution and cost pressures even as it supports longer-term efficiency. WSJ workforce reduction article

Insider Activity

In other news, Director Sytse Sijbrandij sold 116,200 shares of GitLab stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $24.85, for a total transaction 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. The trade was a 0.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Matthew Jacobson sold 459,799 shares of the business’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $22.37, for a total transaction of $10,285,703.63. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,392,308 shares of company stock valued at $31,654,249. Corporate insiders own 10.64% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Woodline Partners LP purchased a new stake in GitLab in the first quarter worth $314,000. Utah Retirement Systems lifted its position in GitLab by 6.6% during the fourth quarter. Utah Retirement Systems now owns 7,407 shares of the company’s stock valued at $278,000 after buying an additional 460 shares during the period. EdgePoint Investment Group Inc. bought a new stake in shares of GitLab during the 4th quarter valued at $271,000. Campbell & CO Investment Adviser LLC bought a new stake in shares of GitLab during the 4th quarter valued at $270,000. Finally, QVT Financial LP purchased a new stake in shares of GitLab in the 2nd quarter worth about $263,000. Institutional investors 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.