GitLab Inc. (NASDAQ:GTLB) stock plunged Wednesday after weak fiscal 2027 guidance overshadowed an otherwise solid fourth-quarter earnings report.
Q4 Financial Highlights
On the earnings front, GitLab delivered a beat on both the top and bottom lines. The company reported fourth-quarter EPS of 30 cents, topping the consensus estimate of 23 cents, while revenue of $260.4 million surpassed the Street’s $252.21 million and grew 23% year over year.
The non-GAAP operating margin stood at 21%, with operating cash flow of $45.8 million, though the GAAP operating margin remained negative at (2)%.
Customer momentum was also notable, with clients generating over $1 million in ARR, rising 26% year-over-year to 155, and the Dollar-Based Net Retention Rate holding at 118%. Total RPO grew 20% to $1.1 billion.
For the full fiscal year 2026, revenue reached $955.2 million, up 26%, and the company crossed the $1 billion ARR milestone.
However, the outlook tempered enthusiasm. GitLab guided for fiscal 2027 adjusted EPS of 76 to 80 cents — well below the $1.05 analyst estimate — and revenue of $1.1 billion to $1.12 billion, at the low end of expectations.
Despite a $400 million share repurchase authorization, investors appeared to focus squarely on the guidance miss as the stock continued its slide.
Stock Faces Bearish Technical Indicators
The stock is currently trading 12.5% below its 20-day simple moving average (SMA) and 15.3% below its 100-day SMA, indicating a bearish trend in the short- to medium-term. Over the past 12 months, shares have decreased significantly and are currently closer to their 52-week lows than their highs, reflecting ongoing challenges for the company.
The RSI is at 44.45, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is at 0.15, below its signal line at 0.22, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum for GitLab’s stock.
- Key Resistance: $30.00
- Key Support: $23.50
Earnings Forecast and Analyst Ratings
Looking further out, the next major catalyst for the stock arrives with the June 9, 2026, earnings report.
- EPS Estimate: 11 cents (Down from 17 cents)
- Revenue Estimate: $251.97 million (Up from $214.51 million)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $45.22. Recent analyst moves include:
- BTIG: Buy (Lowers Target to $30.00) (Mar. 4)
- Piper Sandler: Downgraded to Neutral (Lowers Target to $28.00) (Mar. 4)
- DA Davidson: Neutral (Lowers Target to $30.00) (Mar. 2)
GTLB Price Action: GitLab shares were down 9.85% at $24.07 during premarket trading on Wednesday. The stock is trading near its 52-week low of $23.45, according to Benzinga Pro data.
Photo by Lori Butcher via Shutterstock
