GitLab (NASDAQ:GTLB) Updates Q3 2027 Earnings Guidance

GitLab (NASDAQ:GTLB) updated its third quarter 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.190-0.200 for the period, compared to the consensus 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 Stock Down 3.1%

NASDAQ GTLB opened at $45.09 on Wednesday. The firm has a market cap of $7.62 billion, a PE ratio of -281.81 and a beta of 0.99. The company has a 50 day moving average price of $36.06 and a 200 day moving average price of $28.83. GitLab has a 52 week low of $18.73 and a 52 week high of $52.38.

GitLab (NASDAQ:GTLB) last announced its earnings results on Tuesday, September 1st. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.06. The company had revenue of $286.25 million during the quarter, compared to the consensus estimate of $273.13 million. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. GitLab’s revenue was up 21.3% compared to the same quarter last year. During the same period last year, the firm earned $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, equities research analysts anticipate that GitLab will post -0.18 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Mizuho raised their price objective on GitLab from $28.00 to $34.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 19th. Wells Fargo & Company boosted their price target on GitLab from $26.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Tuesday, August 25th. Raymond James Financial restated a “market perform” rating on shares of GitLab in a report on Tuesday, May 19th. Cantor Fitzgerald increased their price objective on shares of GitLab from $35.00 to $50.00 and gave the company a “neutral” rating in a research report on Monday. Finally, TD Cowen increased their price objective on shares of GitLab from $29.00 to $42.00 and gave the company a “hold” rating in a research report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $42.25.

Insider Activity

In related news, CAO Simon Mundy sold 8,725 shares of GitLab stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $38.00, for a total transaction of $331,550.00. Following the completion of the transaction, the chief accounting officer directly owned 105,332 shares in the company, valued at approximately $4,002,616. This trade represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of GitLab stock in a transaction 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 directly owned 14,902,051 shares of the company’s stock, valued at $423,814,330.44. The trade was a 0.77% 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. Insiders own 10.64% of the company’s stock.

More GitLab News

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab reported quarterly earnings of $0.24 per share, exceeding the $0.18 analyst consensus, while revenue reached $286.25 million versus expectations of $273.13 million. Revenue grew 21.3% year over year, providing evidence of continued demand for the company’s DevSecOps platform. GitLab Inc. Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company issued fiscal 2027 EPS guidance of $0.85-$0.87, well above the $0.61 consensus, and third-quarter EPS guidance of $0.19-$0.20 versus expectations of $0.12. Revenue guidance was broadly in line with estimates, suggesting that the earnings benefit is being driven primarily by improved profitability. GitLab Rallies After Record Bookings and Strong Guidance
• Positive Sentiment: Management highlighted record bookings and strong AI demand, which reinforced the growth outlook and helped drive the post-earnings rally. GitLab’s Q2 2027 Earnings
• Positive Sentiment: BTIG raised its price target from $36 to $52 and maintained a “buy” rating. Cantor Fitzgerald raised its target to $50, while DA Davidson lifted its target to $45. BTIG Research Forecasts Strong Price Appreciation
• Positive Sentiment: Unusually heavy call-option activity ahead of the earnings release reflected increased bullish speculation, with call volume approximately 210% above its average daily level.
• Neutral Sentiment: Despite the improved outlook, GitLab remains unprofitable on a net-income basis, and its shares are trading well above both their 50-day and 200-day moving averages.
• Negative Sentiment: Barron’s cautioned investors against chasing the rally because the stock had already gained substantially over the prior three months. The elevated valuation and recent momentum increase the risk of profit-taking or disappointment if future results do not exceed the newly raised expectations. GitLab Stock Soars After Earnings

Hedge Funds Weigh In On GitLab

A number of institutional investors and hedge funds have recently bought and sold shares of GTLB. Allworth Financial LP lifted its position in GitLab by 124.1% during the third quarter. Allworth Financial LP now owns 558 shares of the company’s stock worth $25,000 after buying an additional 309 shares in the last quarter. Utah Retirement Systems grew its holdings in GitLab by 6.6% in the 4th quarter. Utah Retirement Systems now owns 7,407 shares of the company’s stock valued at $278,000 after buying an additional 460 shares in the last quarter. Larson Financial Group LLC increased its stake in shares of GitLab by 92.7% in the 3rd quarter. Larson Financial Group LLC now owns 1,000 shares of the company’s stock worth $45,000 after acquiring an additional 481 shares during the last quarter. Quarry LP increased its stake in shares of GitLab by 72.5% in the 4th quarter. Quarry LP now owns 1,202 shares of the company’s stock worth $45,000 after acquiring an additional 505 shares during the last quarter. Finally, MetLife Investment Management LLC raised its holdings in shares of GitLab by 6.1% during the 4th quarter. MetLife Investment Management LLC now owns 9,018 shares of the company’s stock worth $338,000 after acquiring an additional 516 shares during the period. 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.