GitLab (NASDAQ:GTLB) Issues Q3 2027 Earnings Guidance

GitLab (NASDAQ:GTLB) issued an update on its third quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.190-0.200 for the period, compared to the consensus EPS estimate of 0.120. The company issued revenue guidance of $281.0 million-$283.0 million, compared to the consensus revenue estimate of $281.3 million. GitLab also updated its FY 2027 guidance to 0.850-0.870 EPS.

GitLab Trading Down 3.1%

GTLB traded down $1.45 during trading on Tuesday, reaching $45.09. The stock had a trading volume of 9,818,489 shares, compared to its average volume of 5,763,563. The company has a market capitalization of $7.62 billion, a price-to-earnings ratio of -281.81 and a beta of 0.94. The stock’s 50 day moving average is $35.70 and its two-hundred day moving average is $28.72. GitLab has a one year low of $18.73 and a one year high of $52.38.

GitLab (NASDAQ:GTLB) last announced its earnings results on Tuesday, September 1st. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.06. The firm had revenue of $286.25 million for the quarter, compared to analysts’ expectations of $273.13 million. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.31%. GitLab has set its FY 2027 guidance at 0.850-0.870 EPS and its Q3 2027 guidance at 0.190-0.200 EPS. On average, equities research analysts predict that GitLab will post -0.18 earnings per share for the current year.

Analysts Set New Price Targets

GTLB has been the topic of several research reports. Wells Fargo & Company boosted their price objective on shares of GitLab from $26.00 to $40.00 and gave the stock an “equal weight” rating in a research note on Tuesday, August 25th. UBS Group raised their target price on shares of GitLab from $35.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, August 21st. Needham & Company LLC lifted their target price on shares of GitLab from $32.00 to $38.00 and gave the company a “buy” rating in a report on Wednesday, June 3rd. Morgan Stanley boosted their price target on GitLab from $29.00 to $30.00 and gave the stock an “equal weight” rating in a research report on Wednesday, June 3rd. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of GitLab in a research note on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eighteen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, GitLab presently has a consensus rating of “Hold” and a consensus price target of $42.25.

Insider Buying and Selling

In related news, CAO Simon Mundy sold 8,725 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $38.00, for a total transaction of $331,550.00. Following the completion of the sale, the chief accounting officer owned 105,332 shares of the company’s stock, valued at $4,002,616. This trade represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $28.44, for a total transaction of $3,304,728.00. Following the sale, the director directly owned 14,902,051 shares of the company’s stock, valued at $423,814,330.44. This trade represents a 0.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 10.64% of the company’s stock.

Key Stories Impacting GitLab

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: Unusually heavy call-option activity suggests some traders are taking bullish positions ahead of earnings. Investors purchased 28,069 call options, more than triple the average daily volume of 9,066 contracts.
• Positive Sentiment: BTIG Research raised its price target from $36 to $52 and maintained a “buy” rating, implying meaningful upside from recent trading levels. GitLab Gears Up For Q2 Print; Recent Forecast Changes
• Positive Sentiment: Cantor Fitzgerald increased its price target from $35 to $50, reflecting improved expectations for GitLab’s valuation, although it retained a “neutral” rating.
• Neutral Sentiment: DA Davidson lifted its target from $35 to $45 but kept a “neutral” rating, indicating that the firm sees limited upside after the stock’s recent rally.
• Neutral Sentiment: Wall Street expects GitLab to report quarterly earnings of approximately $0.18 per share. The earnings release is the key near-term catalyst, with results and management’s outlook likely to determine the next direction for GTLB.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of GTLB. Invesco Ltd. raised its stake in shares of GitLab by 16.0% in the fourth quarter. Invesco Ltd. now owns 167,136 shares of the company’s stock worth $6,273,000 after purchasing an additional 23,035 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of GitLab by 650.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 60,691 shares of the company’s stock valued at $2,278,000 after buying an additional 52,608 shares during the last quarter. Vident Advisory LLC increased its holdings in GitLab by 18.9% in the 4th quarter. Vident Advisory LLC now owns 9,366 shares of the company’s stock worth $352,000 after buying an additional 1,488 shares in the last quarter. NewEdge Advisors LLC increased its holdings in GitLab by 54.8% in the 4th quarter. NewEdge Advisors LLC now owns 12,543 shares of the company’s stock worth $471,000 after buying an additional 4,439 shares in the last quarter. Finally, XTX Topco Ltd increased its holdings in GitLab by 193.1% in the 4th quarter. XTX Topco Ltd now owns 18,339 shares of the company’s stock worth $688,000 after buying an additional 12,082 shares in the last quarter. Hedge funds and other institutional investors own 95.04% of the company’s stock.

About GitLab

GitLab Inc (NASDAQ: GTLB) is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.