Keybanc maintains Overweight on GitLab, lowers PT to $53 from $60.

Keybanc maintains Overweight on GitLab, lowers PT to $53 from $60.

GitLab Inc. (GTLB) has seen its stock price face uncertainty despite positive Q2 earnings, as Keybanc has maintained an Overweight rating but lowered its price target to $53 from $60. The financial services firm's move reflects the broader market conditions and sector-specific challenges, despite the company's strong performance in the second quarter of fiscal year 2026.

GitLab reported earnings of $0.24 per share, surpassing the Zacks Consensus Estimate of $0.16 per share [1]. Revenues reached $235.96 million, exceeding the Zacks Consensus Estimate by 4.14% [1]. The company has shown consistent performance, topping consensus revenue estimates for the last four quarters. However, GitLab shares have lost about 15.4% since the beginning of the year.

The company's AI-native DevSecOps platform has driven a 29% year-over-year (YoY) increase in revenue, reflecting its extensibility and interoperability in integrating various AI tools directly within its platform [1]. This has led to enhanced customer satisfaction and innovation. The GAAP operating margin was (8)%, while the non-GAAP operating margin stood at 17%, indicating a significant expansion in operating margins compared to the same period last year [1].

GitLab also announced strategic appointments and product launches. Brian Robins, the outgoing Chief Financial Officer, will be replaced by James Shen, the current Vice President of Finance, effective September 19, 2025. Simon Mundy will be promoted to Chief Accounting Officer, reporting to Shen. Additionally, Manav Khurana was appointed as Chief Product and Marketing Officer, and Manu Narayan as Chief Information Officer [1]. The company also announced the public beta launch of GitLab Duo Agent Platform, an extensible AI orchestration platform designed for human-AI collaboration across the software development lifecycle [1].

Looking ahead, GitLab expects to achieve revenues between $238.0 million and $239.0 million in the third quarter and between $936 million and $942 million for the full fiscal year 2026. Non-GAAP diluted net income per share is expected to range between $0.19 and $0.20 for the third quarter and between $0.82 and $0.83 for the full fiscal year [1].

Keybanc's decision to maintain an Overweight rating reflects the company's strong performance and strategic position in the AI-native DevSecOps market. However, the firm acknowledges the broader market conditions and sector-specific challenges that have led to the stock's decline. Investors should closely monitor GitLab's ability to navigate these challenges and maintain its growth trajectory.

References:
[1] https://ir.gitlab.com/news/news-details/2025/GitLab-Reports-Second-Quarter-Fiscal-Year-2026-Financial-Results/default.aspx