SAN FRANCISCO, March 4, 2026, 03:14 PST
- GitLab put out a fiscal 2027 adjusted earnings outlook of $0.76 to $0.80 per share, and the board signed off on a $400 million share repurchase plan.
- Revenue jumped 23% in the fourth quarter to $260.4 million, with adjusted earnings coming in at $0.30 per share.
- Derrick Wood at TD Cowen cut his rating on GitLab, pointing to the surge of rapid AI coding competitors.
GitLab is projecting fiscal 2027 adjusted earnings that fall short of Wall Street’s estimates, even as the board greenlights a $400 million buyback. The company’s push into AI tools for developers continues. Shares ticked up roughly 2% before the bell. 1
Software stocks are in a tricky zone right now. Miss on profit, and investors aren’t hesitating—they’re punishing companies, regardless of whether the revenue picture looks solid. With major clients tightening spending and boards demanding more cash handed back, it’s a tough crowd.
“Agentic” AI—software that acts on its own, not just answering prompts—is starting to reshape coding and security jobs. That shift has made developer tools a busy, volatile space. GitLab, feeling the pressure as competitors roll out updates every few weeks, is working to show it can hold its ground.
GitLab posted a 23% jump in fourth-quarter revenue, hitting $260.4 million. Adjusted earnings landed at $0.30 a share. For the year through Jan. 31, revenue totaled $955.2 million. CFO Jessica Ross noted the company managed to “cross $1 billion in ARR,” referring to annual recurring revenue—a key metric for subscription businesses.
GitLab is now guiding for adjusted earnings in fiscal 2027 between $0.76 and $0.80 a share, well under the $1.05 analysts had penciled in, LSEG data via Investing.com showed. 2
The company is guiding for first-quarter fiscal 2027 revenue in the range of $253 million to $255 million, with adjusted earnings expected between $0.20 and $0.21 per share. For the fourth quarter, GitLab beat consensus, posting adjusted profit of $0.23 a share on revenue near $252 million, according to Investing.com. 3
GitLab makes its money selling subscriptions for a DevSecOps platform that rolls software development, security, and IT operations together. Customers can pick from options like Premium or Ultimate, and the platform comes in self-managed or hosted flavors. 4
Questions over competition in AI are getting louder on Wall Street. On Monday, TD Cowen’s Derrick Wood lowered his rating on GitLab from Buy to Hold, trimming his target price to $29. Wood cited what he called “breakneck speeds” from Anthropic and OpenAI, adding that recent checks by the firm had “down-ticked.” 5
But perhaps the main worry is more straightforward. GitLab needs to prove its new AI agent platform can actually spark lasting customer spending—without putting pressure on margins—even as enterprise buyers remain conservative. The adjusted numbers leave out things like stock-based compensation costs, which tend to matter more when growth slows.
GitLab named Ross as its new CFO, while Siva Padisetty steps in as chief technology officer. Both moves fit into the company’s broader push for fresh, multi-year growth engines. Whether that translates to higher net retention — basically, growth from existing customers — or larger contracts should become clearer over the coming quarters.
