GTLB Benefits From Expanding Partner Base: A Sign for More Upside?

GitLab’s GTLB expanding clientele and its market leadership in the DevSecOps platform category are contributing to its growth prospects.

GitLab’s platform is increasingly being adopted by a diverse range of organizations, including Fortune 100 companies, public sector agencies and international enterprises. This broadening partner base reflects the company's ability to meet the complex needs of various industries and geographies, solidifying its position as a leader in the DevSecOps space. 

In the third quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,475, up 10% year over year. Customers with more than $100K of ARR increased to 1,405, up 23% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. The company’s ability to scale within existing accounts while attracting new large customers underscores its potential for sustained top-line expansion.

GitLab’s rich partner network, which includes cloud platforms like Alphabet’s Google Cloud and Amazon’s cloud computing platform AWS, has been noteworthy. These platforms are helping it expand its footprint among large enterprise customers. 

The company’s partnership with Amazon’s cloud computing platform, Amazon Web Services, has been noteworthy. GTLB’s three-year strategic collaboration agreement with Amazon Web Services aims to deliver secure DevSecOps through GitLab Dedicated for regulated industries and the public sector.

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.

The company faces stiff competition from Microsoft’s GitHub, its closest competitor in the DevSecOps space. Microsoft has strengthened its position through the seamless integration of GitHub and Azure DevOps.

Atlassian's expanding footprint in the DevSecOps space has been noteworthy. Atlassian's robust suite of tools like Jira, Bitbucket, and Bamboo, provides a strong foundation for development and DevOps workflows, including CI/CD.

Gitlab’s Share Price Performance, Valuation, and Estimates

Gitlab’s shares have plunged 41.7% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 10.6%.

GTLB Stock's Performance

GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 3.92X compared with the industry’s 3.93X. GTLB has a Value Score of F.

GTLB's Valuation

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $946.45 million, indicating year-over-year growth of 24.66%. The consensus mark for fiscal 2026 earnings is pegged at 89 cents per share, which has remained unchanged over the past 30 days, suggesting 20.27% year-over-year growth.

GitLab Inc. Price and Consensus

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

GitLab currently carries a Zacks Rank #4 (Sell). 

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

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