GitLab (NASDAQ:GTLB) Issues Q3 2027 Earnings Guidance

GitLab (NASDAQ:GTLB) updated its third quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 0.190-0.200 for the period, compared to the consensus EPS estimate of 0.120. The company issued revenue guidance of $281.0 million-$283.0 million, compared to the consensus revenue estimate of $281.3 million. GitLab also updated its FY 2027 guidance to 0.850-0.870 EPS.

GitLab Price Performance

Shares of GTLB opened at $49.59 on Thursday. The firm has a 50 day simple moving average of $36.49 and a two-hundred day simple moving average of $28.97. The company has a market cap of $8.38 billion, a P/E ratio of -154.96 and a beta of 0.99. GitLab has a one year low of $18.73 and a one year high of $55.55.

GitLab (NASDAQ:GTLB) last posted its quarterly earnings results on Tuesday, September 1st. The company reported $0.24 EPS for the quarter, topping 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 return on equity of 1.26% and a negative net margin of 4.99%.GitLab’s revenue was up 21.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $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. On average, analysts expect that GitLab will post -0.18 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on GTLB. Wells Fargo & Company lifted their price target on shares of GitLab from $40.00 to $50.00 and gave the company an “equal weight” rating in a report on Wednesday. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of GitLab in a research note on Wednesday. Bank of America increased their price target on GitLab from $45.00 to $54.00 and gave the company a “neutral” rating in a research note on Wednesday. Morgan Stanley boosted their price objective on GitLab from $30.00 to $57.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Finally, Piper Sandler upped their target price on GitLab from $28.00 to $52.00 and gave the stock a “neutral” rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eighteen have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $51.88.

Insiders Place Their Bets

In other GitLab news, Director Sytse Sijbrandij sold 116,200 shares of GitLab 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 transaction, the director directly owned 14,902,051 shares of the company’s stock, valued at approximately $423,814,330.44. The trade was a 0.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Simon Mundy sold 8,725 shares of the company’s stock in a transaction dated 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 sale, the chief accounting officer owned 105,332 shares in the company, valued at $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 insiders.

Key Headlines Impacting GitLab

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.

Institutional Trading of GitLab

Several institutional investors have recently added to or reduced their stakes in GTLB. AQR Capital Management LLC increased its position in GitLab by 766.3% during the 4th 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 during the period. Atreides Management LP boosted its stake in shares of GitLab by 867.3% in the 2nd quarter. Atreides Management LP now owns 3,938,198 shares of the company’s stock valued at $177,652,000 after purchasing an additional 3,531,070 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of GitLab by 8.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,700,825 shares of the company’s stock valued at $121,834,000 after purchasing an additional 213,217 shares during the last quarter. State Street Corp increased its position in shares of GitLab by 6.5% during the fourth quarter. State Street Corp now owns 2,448,442 shares of the company’s stock worth $91,890,000 after buying an additional 148,783 shares during the period. Finally, Alliancebernstein L.P. raised its stake in GitLab by 22.5% during the second quarter. Alliancebernstein L.P. now owns 1,874,777 shares of the company’s stock worth $84,571,000 after buying an additional 344,089 shares during the last quarter. 95.04% of the stock is currently owned by institutional investors.

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.