GitLab Shares Down Despite Q4 Earnings Beat, Revenues Up Y/Y

GitLab GTLB reported fourth-quarter fiscal 2026 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate by 32.57%. The company reported earnings of 33 cents per share in the year-ago quarter.

Total revenues of $260.4 million beat the consensus mark by 3.50% and increased 23.2% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.

However, GitLab shares declined 10.22% in pre-market trading.

GitLab’s Q4 Top-Line Details

Subscriptions, self-managed and SaaS revenues (90% of total revenues) increased 26.3% year over year to $234.3 million, beating the Zacks Consensus Estimate by 4.27%. License, self-managed and other revenues (10% of total revenues) rose 1% year over year to $26.1 million.

GitLab Inc. Price, Consensus and EPS Surprise

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

SaaS revenues contributed 32% to total revenues and surged 38% year over year. This growth was driven by the strong adoption of GitLab Dedicated and Duo Agent Platform, as well as the integration of AI and expanding customer engagement.

Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,682, up 8% year over year. Customers with more than $100K of ARR increased to 1,456, up 18% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. Customers with more than $1 million of ARR reached 155, an increase of 26% year over year.

The dollar-based Net Retention Rate was 118% in the reported quarter.

Total Remaining Performance Obligation (RPO) surged 20% year over year to $1.1 billion. The current RPO increased 24% year over year to $719.4 million.

GitLab’s Operating Details

On a non-GAAP basis, research & development expenses increased 14.4% year over year to $54.2 million. Sales and marketing expenses were up 14.3% year over year to $91.5 million. General and administrative expenses increased 15.7% year over year to $32.3 million in the reported quarter.

Operating income was $53.4 million on a non-GAAP basis compared with the year-ago quarter’s $37.4 million.

GitLab’s Balance Sheet & Cash Flow

As of Jan. 31, 2026, cash and cash equivalents and short-term investments were $1.25 billion compared with $1.20 billion as of Oct. 31, 2025.

In the reported quarter, the company generated a cash flow from operations of $45.7 million compared with $31.4 million in the previous quarter.

As of Jan. 31, 2026, the adjusted free cash flow was $41.75 million compared with $27.24 million as of Oct. 31, 2025.

GitLab Initiates Q1 & FY27 Guidance

For the first quarter of fiscal 2027, GitLab expects revenues between $253 million and $255 million, indicating approximately 18% to 19% year-over-year growth.

Non-GAAP operating income is expected to be in the range of $32-$34 million for the fiscal first quarter.

Non-GAAP earnings for the fiscal first quarter are expected to be between 20 cents and 21 cents per share.

For fiscal 2027, GitLab expects revenues between $1 billion and $1.1 billion, indicating year-over-year growth of approximately 15% to 17%.

Non-GAAP operating income is expected to be in the range of $129-$137 million for fiscal 2027.

Non-GAAP earnings are expected to be between 76 cents and 80 cents per share.

GitLab’s Zacks Rank & Stocks to Consider

Currently, GitLab has a Zacks Rank #4 (Sell).

HUYA HUYA, Micron Technology MU and Getty Images GETY are some top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. While HUYA and Micron Technology currently sport a Zacks Rank #1 (Strong Buy) each, Getty Images carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HUYA is set to report fourth-quarter 2025 results on March 17. HUYA shares have lost 4.7% in the trailing six-month period.

Micron Technology is set to report second-quarter fiscal 2026 results on March 18. MU shares have appreciated 203.7% in the trailing six-month period.

Getty Images is set to report fourth-quarter 2025 results on March 16. GETY shares have lost 56.1% in the trailing six-month period.

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