GitLab 2026 Q1 Earnings Narrower Losses and 34.6% Net Income Improvement

GitLab (GTLB) reported its fiscal 2026 Q1 earnings on June 10th, 2025. The company exceeded revenue expectations with a 26.8% year-over-year increase to $214.51 million, surpassing analyst estimates. However, GitLab's guidance for Q2 and the full fiscal year fell slightly below Wall Street's projections. Despite this, the company raised its full-year EPS guidance, reflecting confidence in its strategic direction and focus on AI integration to drive future growth.

Revenue

GitLab's total revenue for Q1 2026 saw a substantial increase to $214.51 million, up from $169.19 million in Q1 2025. The subscription segment, encompassing both self-managed and SaaS, contributed significantly with $194.48 million. Additionally, the license and other segments generated $20.03 million, underscoring a well-rounded revenue performance.

Earnings/Net Income

GitLab reduced its losses to $0.22 per share in Q1 2026, a significant improvement from the $0.35 per share loss in Q1 2025, marking a 37.1% enhancement. The net loss was narrowed to $36.26 million, a 34.6% reduction compared to $55.48 million the previous year. This reflects positively on GitLab's financial trajectory.

Price Action

The stock price of GitLab has declined by 1.40% on the latest trading day, increased by 3.94% over the most recent full trading week, and is down 2.06% month-to-date.

Post-Earnings Price Action Review

In recent years, a strategy of buying GitLab shares following a quarterly revenue drop and holding for 30 days has yielded positive results. Historical backtesting of this approach demonstrated a return of 21.78%, indicating that the strategy effectively captured subsequent upward movements in the stock price post-earnings announcements. This suggests that investors who capitalize on short-term price dips can potentially benefit from GitLab's longer-term growth trajectory, particularly as the company continues to integrate innovative AI capabilities and enhance its DevSecOps platform. As GitLab maintains its focus on growth and operational improvements, the strategy may continue to be a viable play for capturing value in the stock.

CEO Commentary

William Staples, CEO & Director, highlighted the 27% year-over-year revenue growth to $215 million in Q1. He emphasized GitLab's AI-native DevSecOps platform, noting significant adoption of the GitLab Duo product and ongoing AI integration, which positions the company for sustained growth and enhanced customer value through innovation.

Guidance

For Q2 FY 2026, GitLab anticipates revenues between $226 million and $227 million, reflecting about 24% growth year-over-year. The company projects a non-GAAP operating income of $23 million to $24 million, with anticipated net income per share of $0.16 to $0.17. For the fiscal year 2026, expected revenue ranges from $936 million to $942 million, maintaining a similar growth trajectory.

Additional News

GitLab recently appointed Ian Steward as Chief Revenue Officer, effective May 3, 2025. Steward brings a wealth of experience from his previous role at Tricentis, focusing on driving revenue growth with a strong analytical approach. Additionally, GitLab welcomed David Henshall to its board of directors. Henshall, former CEO of Citrix Systems, Inc., joins the Audit Committee, further strengthening GitLab's leadership team. These strategic appointments align with GitLab’s ongoing efforts to enhance its executive team and governance as it continues to expand its market presence and drive growth in the software development industry.