Can GitLab's DevSecOps Leadership Sustain Its Growth Momentum?

GitLab GTLB has built one of the most complete AI-native DevSecOps platforms, unifying code creation, testing and security within a single automated environment. By embedding security and compliance directly into developer workflows, the platform removes the need for multiple point tools. Its AI layer, GitLab Duo, automates code review and vulnerability detection, and the evolution toward the Duo Agent Platform extends this intelligence into autonomous task execution across the development pipeline. This integrated foundation is built around speed, security and AI-driven automation, which is increasingly central to why enterprises are consolidating critical development functions onto GitLab.

The product-driven differentiation is translating into consistent business expansion, with the Zacks Consensus Estimate for GitLab’s fiscal third-quarter revenues being pegged at $238.61 million, indicating a 21.7% year-over-year increase. While Enterprise adoption remains robust, with the consensus mark for the number of customers generating over $100,000 in annual recurring revenues pegged at 1,372, up 20% year over year, supported by consensus estimates for dollar-based net retention rate pegged at 120%. These trends reinforce how consolidation, AI integration and embedded security are expected to continue driving durable demand from high-value accounts.

GitLab’s trajectory now hinges on how effectively it scales the capabilities that define its DevSecOps advantage. The progression of the Duo Agent Platform, combined with cloud-agnostic deployment options and integrations with Anthropic, OpenAI, Google and Amazon, strengthens GitLab’s position as the control layer where development, security and AI automation converge. As enterprises expand their use of AI-assisted development, they will depend on platforms that can enforce security, validate changes and manage deployment with consistency across environments. This rising need for secure, unified and AI-aware pipelines is a key catalyst for GitLab’s DevSecOps platform and supports the continuation of its current growth momentum.

GTLB Faces Intensifying Competition

GitLab operates in a highly competitive landscape, with Microsoft MSFT standing out as its most significant rival in the DevSecOps space. Microsoft continues to strengthen its position through the integration of GitHub and Azure DevOps, supported by enhanced security capabilities, including GitHub Advanced Security. The breadth of Microsoft’s cloud ecosystem creates natural adoption pathways for enterprises already aligned with Azure. Atlassian TEAM remains another strong competitor, expanding its presence through Jira, Bitbucket and Bamboo, which anchors many development workflows. Through its Open DevOps initiative, Atlassian is enhancing security visibility in Jira by integrating tools from Snyk, Mend, Lacework, StackHawk and JFrog. This approach helps Atlassian extend its influence across planning, development and remediation workflows, suggesting the intensity of competition surrounding GitLab.

Gitlab’s Share Price Performance, Valuation and Estimates

GitLab’s shares have declined 17.6% year to date against the broader Zacks Computer & Technology sector’s return of 26.9%.

GitLab Stock's Performance

GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 7.13X compared with the sector’s 6.88X. GTLB has a Value Score of F.

GitLab Valuation

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at 83 cents per share, which has remained unchanged over the past 30 days. This indicates a 12.16% increase year over year.

GitLab Inc. Price and Consensus

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

GitLab currently carries a Zacks Rank #2 (Buy). 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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