GitLab GTLB 2026Q2 Earnings Preview Upside Ahead on AI-Driven DevSecOps Demand
Generated by AI AgentAinvestweb
Sunday, Aug 31, 2025 7:28 pm ET1min read
GTLB--
Forward-Looking Analysis
GitLab is projected to report Q2 2026 earnings on September 2nd with a consensus EPS estimate of $0.16 and revenue expected to hit $227.2 million, reflecting a 26.8% year-over-year revenue growth from Q1 2026. Analysts remain bullish, with a "Buy" consensus rating and an average price target of $64.08, implying a 46.4% upside from current levels. The company’s recent Q3 FY2025 results showed 31% revenue growth to $196 million and non-GAAP operating margin expansion. GitLab’s strategic integration with AWS and its AI-powered DevSecOps platform position it well to meet rising demand for secure, efficient software development workflows.
Historical Performance Review
In Q1 2026, GitLabGTLB-- reported revenue of $214.51 million, a 26.8% increase year-over-year, while net income was negative at $36.26 million. Gross profit stood at $189.47 million, and the company delivered an EPS of -$0.22, indicating ongoing investment in growth and product development.
Additional News
GitLab announced the appointment of Bill Staples as CEO, succeeding co-founder Sid Sijbrandij, who transitioned to executive chair. The company also launched an integrated offering with AWS and released Advanced SAST for enhanced vulnerability detection. Q3 FY2025 saw 31% revenue growth and improved non-GAAP operating margins to 13%, up from 3% in the prior year. ARRARR-- and RPO growth metrics continued to outperform, with dollar-based net retention at 124%.
Summary & Outlook
GitLab’s financials show a mix of strong top-line growth and improving profitability on a non-GAAP basis, supported by a robust product roadmap and strategic partnerships. The company’s AI-enhanced DevSecOps platform and AWS integration are key growth catalysts. While GAAP net income remains negative, the trajectory of revenue and non-GAAP operating income signals a path toward profitability. With positive analyst sentiment and a strong market position, GitLab appears well-positioned for upside in the coming quarter.
GitLab is projected to report Q2 2026 earnings on September 2nd with a consensus EPS estimate of $0.16 and revenue expected to hit $227.2 million, reflecting a 26.8% year-over-year revenue growth from Q1 2026. Analysts remain bullish, with a "Buy" consensus rating and an average price target of $64.08, implying a 46.4% upside from current levels. The company’s recent Q3 FY2025 results showed 31% revenue growth to $196 million and non-GAAP operating margin expansion. GitLab’s strategic integration with AWS and its AI-powered DevSecOps platform position it well to meet rising demand for secure, efficient software development workflows.
Historical Performance Review
In Q1 2026, GitLabGTLB-- reported revenue of $214.51 million, a 26.8% increase year-over-year, while net income was negative at $36.26 million. Gross profit stood at $189.47 million, and the company delivered an EPS of -$0.22, indicating ongoing investment in growth and product development.
Additional News
GitLab announced the appointment of Bill Staples as CEO, succeeding co-founder Sid Sijbrandij, who transitioned to executive chair. The company also launched an integrated offering with AWS and released Advanced SAST for enhanced vulnerability detection. Q3 FY2025 saw 31% revenue growth and improved non-GAAP operating margins to 13%, up from 3% in the prior year. ARRARR-- and RPO growth metrics continued to outperform, with dollar-based net retention at 124%.
Summary & Outlook
GitLab’s financials show a mix of strong top-line growth and improving profitability on a non-GAAP basis, supported by a robust product roadmap and strategic partnerships. The company’s AI-enhanced DevSecOps platform and AWS integration are key growth catalysts. While GAAP net income remains negative, the trajectory of revenue and non-GAAP operating income signals a path toward profitability. With positive analyst sentiment and a strong market position, GitLab appears well-positioned for upside in the coming quarter.
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