We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GitLab's DevSecOps Growth Momentum Continues: A Sign for More Upside?
Read MoreHide Full Article
Key Takeaways
GitLab is gaining from strong demand for its DevSecOps platform and enterprise customer expansion.
New releases, such as GitLab 18 and Duo with Amazon Q, are enhancing security, AI, and DevOps workflows.
GTLB's partnerships with major cloud providers are boosting its footprint among large enterprises.
GitLab (GTLB - Free Report) is benefiting from strong demand for its DevSecOps platform. Its solutions, such as GitLab Ultimate, Dedicated, and GitLab Duo, play a significant role in driving customer adoption and expanding existing customer relationships.
This growing demand is reflected in the company’s financial performance. In the first quarter of fiscal 2026, total revenues of $214.4 million increased 27% year over year.
GitLab’s expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the first quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
In the reported quarter, GitLab announced the general availability of GitLab 18, featuring major innovations across core DevOps workflows, security and compliance, and AI capabilities natively integrated into the platform. The company also announced the general availability of GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS. It achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government, under the sponsorship of the GSA.
GitLab benefits from a rich partner network, which includes cloud platforms such as Alphabet’s Google Cloud and Amazon’s cloud arm, Amazon Web Services (AWS), and Zscaler. These platforms are helping it expand its footprint among large enterprise customers.
Gitlab Suffers From Stiff Competition
Gitlab operates in a highly competitive environment. It faces stiff competition from Microsoft (MSFT - Free Report) , its principal rival in the DevSecOps space. Other competitors include Atlassian (TEAM - Free Report) and other DevSecOps platforms that specialize in various stages of the software development lifecycle.
Microsoft strengthens its position through the seamless integration of GitHub and Azure DevOps. By consistently expanding its DevSecOps capabilities, Microsoft has become a formidable rival, making it even more challenging for GitLab to differentiate itself and sustain its market presence.
Atlassian competes with GitLab in the DevSecOps space through its robust suite of tools like Jira, Bitbucket, and Bamboo, which provides a strong foundation for development and DevOps workflows, including CI/CD. Atlassian continues to innovate and expand its offerings to maintain its foothold in the DevSecOps market.
Gitlab’s Share Price Performance, Valuation and Estimates
Gitlab’s shares have lost 17.7% year to date against the broader Zacks Computer & Technology sector’s return of 7%.
GTLB Price Performance
Image Source: Zacks Investment Research
GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 7.51X compared with the industry’s 5.74X. GTLB has a Value Score of F.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is currently pegged at 16 cents per share, which has increased by a penny over the past 30 days. This indicates a 6.67% increase year over year.
The consensus mark for fiscal 2026 earnings is pegged at 75 cents per share, which has increased 6.6% over the past 30 days, suggesting 1.35% year-over-year growth.
Image: Bigstock
GitLab's DevSecOps Growth Momentum Continues: A Sign for More Upside?
Key Takeaways
GitLab (GTLB - Free Report) is benefiting from strong demand for its DevSecOps platform. Its solutions, such as GitLab Ultimate, Dedicated, and GitLab Duo, play a significant role in driving customer adoption and expanding existing customer relationships.
This growing demand is reflected in the company’s financial performance. In the first quarter of fiscal 2026, total revenues of $214.4 million increased 27% year over year.
GitLab’s expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the first quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
In the reported quarter, GitLab announced the general availability of GitLab 18, featuring major innovations across core DevOps workflows, security and compliance, and AI capabilities natively integrated into the platform. The company also announced the general availability of GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS. It achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government, under the sponsorship of the GSA.
GitLab benefits from a rich partner network, which includes cloud platforms such as Alphabet’s Google Cloud and Amazon’s cloud arm, Amazon Web Services (AWS), and Zscaler. These platforms are helping it expand its footprint among large enterprise customers.
Gitlab Suffers From Stiff Competition
Gitlab operates in a highly competitive environment. It faces stiff competition from Microsoft (MSFT - Free Report) , its principal rival in the DevSecOps space. Other competitors include Atlassian (TEAM - Free Report) and other DevSecOps platforms that specialize in various stages of the software development lifecycle.
Microsoft strengthens its position through the seamless integration of GitHub and Azure DevOps. By consistently expanding its DevSecOps capabilities, Microsoft has become a formidable rival, making it even more challenging for GitLab to differentiate itself and sustain its market presence.
Atlassian competes with GitLab in the DevSecOps space through its robust suite of tools like Jira, Bitbucket, and Bamboo, which provides a strong foundation for development and DevOps workflows, including CI/CD. Atlassian continues to innovate and expand its offerings to maintain its foothold in the DevSecOps market.
Gitlab’s Share Price Performance, Valuation and Estimates
Gitlab’s shares have lost 17.7% year to date against the broader Zacks Computer & Technology sector’s return of 7%.
GTLB Price Performance
Image Source: Zacks Investment Research
GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 7.51X compared with the industry’s 5.74X. GTLB has a Value Score of F.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is currently pegged at 16 cents per share, which has increased by a penny over the past 30 days. This indicates a 6.67% increase year over year.
GitLab Inc. Price and Consensus
GitLab Inc. price-consensus-chart | GitLab Inc. Quote
The consensus mark for fiscal 2026 earnings is pegged at 75 cents per share, which has increased 6.6% over the past 30 days, suggesting 1.35% year-over-year growth.
GitLab currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.