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Why Is Gitlab (GTLB) Down 12.3% 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 lost about 12.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gitlab due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Gitlab Q4 Earnings Beat Estimate, Revenues Up Y/Y
GitLab reported fourth-quarter fiscal 2026 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate by 32.57%. The company reported earnings of 33 cents per share in the year-ago quarter.
Total revenues of $260.4 million beat the consensus mark by 3.50% and increased 23.2% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.
GitLab’s Q4 Top-Line Details
Subscriptions, self-managed and SaaS revenues (90% of total revenues) increased 26.3% year over year to $234.3 million, beating the Zacks Consensus Estimate by 4.27%. License, self-managed, and other revenues (10% of total revenues) rose 1% year over year to $26.1 million.
SaaS revenues contributed 32% to total revenues and surged 38% year over year. This growth was driven by the strong adoption of GitLab Dedicated and Duo Agent Platform, as well as the integration of AI and expanding customer engagement.
Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,682, up 8% year over year. Customers with more than $100K of ARR increased to 1,456, up 18% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. Customers with more than $1 million of ARR reached 155, an increase of 26% year over year.
The dollar-based Net Retention Rate was 118% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 20% year over year to $1.1 billion. The current RPO increased 24% year over year to $719.4 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 14.4% year over year to $54.2 million. Sales and marketing expenses were up 14.3% year over year to $91.5 million. General and administrative expenses increased 15.7% year over year to $32.3 million in the reported quarter.
Operating income was $53.4 million on a non-GAAP basis compared with the year-ago quarter’s $37.4 million.
GitLab’s Balance Sheet & Cash Flow
As of Jan. 31, 2026, cash and cash equivalents and short-term investments were $1.25 billion compared with $1.20 billion as of Oct. 31, 2025.
In the reported quarter, the company generated a cash flow from operations of $45.7 million compared with $31.4 million in the previous quarter.
As of Jan. 31, 2026, the adjusted free cash flow was $41.75 million compared with $27.24 million as of Oct. 31, 2025.
GitLab Initiates Q1 & FY27 Guidance
For the first quarter of fiscal 2027, GitLab expects revenues between $253 million and $255 million, indicating approximately 18% to 19% year-over-year growth.
Non-GAAP operating income is expected to be in the range of $32-$34 million for the fiscal first quarter.
Non-GAAP earnings for the fiscal first quarter are expected to be between 20 cents and 21 cents per share.
For fiscal 2027, GitLab expects revenues between $1 billion and $1.1 billion, indicating year-over-year growth of approximately 15% to 17%.
Non-GAAP operating income is expected to be in the range of $129-$137 million for fiscal 2027.
Non-GAAP earnings are expected to be between 76 cents and 80 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in estimates revision.
The consensus estimate has shifted 9.52% due to these changes.
VGM Scores
At this time, Gitlab has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gitlab has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Gitlab is part of the Zacks Internet - Software industry. Over the past month, CCC Intelligent Solutions Holdings Inc. (CCC - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
CCC Intelligent Solutions reported revenues of $277.86 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $0.10 for the same period compares with $0.10 a year ago.
CCC Intelligent Solutions is expected to post earnings of $0.10 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CCC Intelligent Solutions. Also, the stock has a VGM Score of B.
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Why Is Gitlab (GTLB) Down 12.3% Since Last Earnings Report?
A month has gone by since the last earnings report for GitLab Inc. (GTLB - Free Report) . Shares have lost about 12.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Gitlab due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Gitlab Q4 Earnings Beat Estimate, Revenues Up Y/Y
GitLab reported fourth-quarter fiscal 2026 non-GAAP earnings of 30 cents per share, beating the Zacks Consensus Estimate by 32.57%. The company reported earnings of 33 cents per share in the year-ago quarter.
Total revenues of $260.4 million beat the consensus mark by 3.50% and increased 23.2% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.
GitLab’s Q4 Top-Line Details
Subscriptions, self-managed and SaaS revenues (90% of total revenues) increased 26.3% year over year to $234.3 million, beating the Zacks Consensus Estimate by 4.27%. License, self-managed, and other revenues (10% of total revenues) rose 1% year over year to $26.1 million.
SaaS revenues contributed 32% to total revenues and surged 38% year over year. This growth was driven by the strong adoption of GitLab Dedicated and Duo Agent Platform, as well as the integration of AI and expanding customer engagement.
Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,682, up 8% year over year. Customers with more than $100K of ARR increased to 1,456, up 18% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. Customers with more than $1 million of ARR reached 155, an increase of 26% year over year.
The dollar-based Net Retention Rate was 118% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 20% year over year to $1.1 billion. The current RPO increased 24% year over year to $719.4 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 14.4% year over year to $54.2 million. Sales and marketing expenses were up 14.3% year over year to $91.5 million. General and administrative expenses increased 15.7% year over year to $32.3 million in the reported quarter.
Operating income was $53.4 million on a non-GAAP basis compared with the year-ago quarter’s $37.4 million.
GitLab’s Balance Sheet & Cash Flow
As of Jan. 31, 2026, cash and cash equivalents and short-term investments were $1.25 billion compared with $1.20 billion as of Oct. 31, 2025.
In the reported quarter, the company generated a cash flow from operations of $45.7 million compared with $31.4 million in the previous quarter.
As of Jan. 31, 2026, the adjusted free cash flow was $41.75 million compared with $27.24 million as of Oct. 31, 2025.
GitLab Initiates Q1 & FY27 Guidance
For the first quarter of fiscal 2027, GitLab expects revenues between $253 million and $255 million, indicating approximately 18% to 19% year-over-year growth.
Non-GAAP operating income is expected to be in the range of $32-$34 million for the fiscal first quarter.
Non-GAAP earnings for the fiscal first quarter are expected to be between 20 cents and 21 cents per share.
For fiscal 2027, GitLab expects revenues between $1 billion and $1.1 billion, indicating year-over-year growth of approximately 15% to 17%.
Non-GAAP operating income is expected to be in the range of $129-$137 million for fiscal 2027.
Non-GAAP earnings are expected to be between 76 cents and 80 cents per share.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in estimates revision.
The consensus estimate has shifted 9.52% due to these changes.
VGM Scores
At this time, Gitlab has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Gitlab has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Gitlab is part of the Zacks Internet - Software industry. Over the past month, CCC Intelligent Solutions Holdings Inc. (CCC - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
CCC Intelligent Solutions reported revenues of $277.86 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $0.10 for the same period compares with $0.10 a year ago.
CCC Intelligent Solutions is expected to post earnings of $0.10 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CCC Intelligent Solutions. Also, the stock has a VGM Score of B.