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Why Is Gitlab (GTLB) Up 7% Since Last Earnings Report?
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A month has gone by since the last earnings report for GitLab Inc. (GTLB - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gitlab due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for GitLab Inc. before we dive into how investors and analysts have reacted as of late.
Gitlab Q2 Earnings Beat Estimate, Revenues Up Y/Y
GitLab reported second-quarter fiscal 2026 non-GAAP earnings of 24 cents per share, beating the Zacks Consensus Estimate by 50%. The company reported earnings of 15 cents per share in the year-ago quarter.
Total revenues of $236 million beat the consensus mark by 4.14% and rallied 29.2% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.
GitLab’s Top-Line Details
Subscriptions, self-managed, and SaaS (90.1% of total revenues) revenues increased 30.3% year over year to $212.7 million, beating the Zacks Consensus Estimate by 3.93%.
License, self-managed, and other revenues (9.9% of total revenues) rose 20% year over year to $23.3 million.
SaaS revenues contributed 30% to total revenues and surged 39% year over year, driven by the strong adoption of GitLab Dedicated, AI integration, and expanding customer engagement.
Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,338, up 11% year over year. Customers with more than $100K of ARR increased to 1,344, up 25% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
The dollar-based Net Retention Rate was 121% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 32% year over year to $988.2 million. The current RPO increased 31% year over year to $621.6 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 16.8% year over year to $52.3 million. Sales and marketing expenses were up 15.5% year over year to $89.6 million. General and administrative expenses increased 20.7% year over year to $30.2 million in the reported quarter.
Operating income was $39.6 million on a non-GAAP basis against the year-ago quarter’s loss of $18.2 million.
GitLab’s Balance Sheet & Cash Flow
As of July 31, 2025, cash and cash equivalents and short-term investments were $1.16 billion compared with $1.10 billion as of April 30, 2025.
In the reported quarter, the company generated a cash flow from operations of $49.4 million compared with an operating cash outflow of $106.3 million in the previous quarter.
As of July 31, 2025, the adjusted free cash flow was $46.5 million compared with $104.1 million as of April 30, 2025.
GitLab Initiates Q3 & FY26 Guidance
For the third quarter of fiscal 2026, GitLab expects revenues between $238 million and $239 million, indicating approximate growth of 23% year over year.
Non-GAAP operating income is expected to be in the range of $31-$32 million for the fiscal third quarter.
Non-GAAP fiscal third-quarter earnings are expected to be between 19 cents and 20 cents per share.
For fiscal 2026, GitLab expects revenues between $936 million and $942 million, indicating growth of approximately 24% year over year.
Non-GAAP operating income is expected to be in the range of $133-$136 million for fiscal 2026.
Non-GAAP earnings are expected to be between 82 cents and 83 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 25.19% due to these changes.
VGM Scores
Currently, Gitlab has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Gitlab has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Gitlab belongs to the Zacks Internet - Software industry. Another stock from the same industry, BILL Holdings (BILL - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
BILL Holdings reported revenues of $383.35 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.53 for the same period compares with $0.57 a year ago.
BILL Holdings is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -19.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.7%.
BILL Holdings has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Gitlab (GTLB) Up 7% Since Last Earnings Report?
A month has gone by since the last earnings report for GitLab Inc. (GTLB - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gitlab due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for GitLab Inc. before we dive into how investors and analysts have reacted as of late.
Gitlab Q2 Earnings Beat Estimate, Revenues Up Y/Y
GitLab reported second-quarter fiscal 2026 non-GAAP earnings of 24 cents per share, beating the Zacks Consensus Estimate by 50%. The company reported earnings of 15 cents per share in the year-ago quarter.
Total revenues of $236 million beat the consensus mark by 4.14% and rallied 29.2% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.
GitLab’s Top-Line Details
Subscriptions, self-managed, and SaaS (90.1% of total revenues) revenues increased 30.3% year over year to $212.7 million, beating the Zacks Consensus Estimate by 3.93%.
License, self-managed, and other revenues (9.9% of total revenues) rose 20% year over year to $23.3 million.
SaaS revenues contributed 30% to total revenues and surged 39% year over year, driven by the strong adoption of GitLab Dedicated, AI integration, and expanding customer engagement.
Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,338, up 11% year over year. Customers with more than $100K of ARR increased to 1,344, up 25% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
The dollar-based Net Retention Rate was 121% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 32% year over year to $988.2 million. The current RPO increased 31% year over year to $621.6 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 16.8% year over year to $52.3 million. Sales and marketing expenses were up 15.5% year over year to $89.6 million. General and administrative expenses increased 20.7% year over year to $30.2 million in the reported quarter.
Operating income was $39.6 million on a non-GAAP basis against the year-ago quarter’s loss of $18.2 million.
GitLab’s Balance Sheet & Cash Flow
As of July 31, 2025, cash and cash equivalents and short-term investments were $1.16 billion compared with $1.10 billion as of April 30, 2025.
In the reported quarter, the company generated a cash flow from operations of $49.4 million compared with an operating cash outflow of $106.3 million in the previous quarter.
As of July 31, 2025, the adjusted free cash flow was $46.5 million compared with $104.1 million as of April 30, 2025.
GitLab Initiates Q3 & FY26 Guidance
For the third quarter of fiscal 2026, GitLab expects revenues between $238 million and $239 million, indicating approximate growth of 23% year over year.
Non-GAAP operating income is expected to be in the range of $31-$32 million for the fiscal third quarter.
Non-GAAP fiscal third-quarter earnings are expected to be between 19 cents and 20 cents per share.
For fiscal 2026, GitLab expects revenues between $936 million and $942 million, indicating growth of approximately 24% year over year.
Non-GAAP operating income is expected to be in the range of $133-$136 million for fiscal 2026.
Non-GAAP earnings are expected to be between 82 cents and 83 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 25.19% due to these changes.
VGM Scores
Currently, Gitlab has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Gitlab has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Gitlab belongs to the Zacks Internet - Software industry. Another stock from the same industry, BILL Holdings (BILL - Free Report) , has gained 16.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
BILL Holdings reported revenues of $383.35 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.53 for the same period compares with $0.57 a year ago.
BILL Holdings is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -19.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.7%.
BILL Holdings has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.