GitLab's Partner Base Expands: Is Growth Thesis Strengthening?

GitLab GTLB is benefiting from strong demand for its DevSecOps platform. Its rich partner network, which includes cloud platforms such as Alphabet’s Google Cloud and Amazon’s cloud arm, Amazon Web Services (AWS), and Zscaler has been a major growth driver. These platforms are helping it expand its footprint among large enterprise customers.

In April 2025, GitLab announced the general availability of GitLab Duo with Amazon Q, integrating Amazon Q’s AI agents into its DevSecOps platform to accelerate development, modernize legacy code, and streamline security and code reviews.

The integration of GitLab’s DevSecOps platform with Alphabet’s Google Cloud services is enhancing developer productivity by streamlining authentication, boosting application deployment and improving the developer experience. This collaboration between GitLab and Alphabet ensures a more seamless and efficient development workflow.

Zscaler, a cloud security leader, selected GitLab in a competitive process, forming a partnership. This reinforces GTLB’s position in DevSecOps by enhancing security, streamlining workflows and expanding its enterprise adoption.

GitLab’s expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the first quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.

GitLab Suffers From Stiff Competition

GitLab operates in a highly competitive environment. It faces stiff competition from Microsoft MSFT, its principal rival in the DevSecOps space. Other competitors include Atlassian TEAM and other DevSecOps platforms that specialize in various stages of the software development lifecycle.

Microsoft has a strong focus on DevSecOps, integrating security into the software development lifecycle. It strengthens its position through the seamless integration of GitHub and Azure DevOps. Microsoft also partners with other companies to provide comprehensive DevSecOps solutions, like Contrast Security. 

Atlassian is expanding its footprint in the DevSecOps space through its robust suite of tools like Jira, Bitbucket, and Bamboo, which provides a strong foundation for development and DevOps workflows, including CI/CD. 

Atlassian is actively advancing DevSecOps through partnerships and integrations, notably with the recent addition of security integrations to Jira and its Open DevOps initiative. This includes collaborations with companies like Snyk, Mend, Lacework, Stackhawk, and JFrog to aggregate vulnerability data within Jira, making it easier to prioritize and address security issues within the DevOps workflow.

Gitlab’s Share Price Performance, Valuation and Estimates

GitLab’s shares have lost 18.6% year to date against the broader Zacks Computer & Technology sector’s return of 10.6%. 

GitLab Stock's Performance

GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 7.21X compared with the industry’s 5.90X. GTLB has a Value Score of F.

GitLab Valuation

The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is currently pegged at 16 cents per share, which has remained unchanged over the past 30 days. This indicates a 6.67% increase year over year.

GitLab Inc. Price and Consensus

GitLab Inc. price-consensus-chart | GitLab Inc. Quote

The consensus mark for fiscal 2026 earnings is pegged at 75 cents per share, which has remained unchanged over the past 30 days, suggesting 1.35% year-over-year growth.

GitLab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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