Software development platform GitLab Q2 revenue beats estimates
Overview
GitLab fiscal Q2 revenue rises 29% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for fiscal Q2 beats estimates
Company announces CFO transition, with James Shen as interim CFO
Outlook
GitLab expects Q3 revenue between $238 mln and $239 mln
Company anticipates FY 2026 revenue of $936 mln to $942 mln
GitLab projects Q3 non-GAAP operating income of $31 mln to $32 mln
Company sees FY 2026 non-GAAP EPS of $0.82 to $0.83
Result Drivers
AI-NATIVE PLATFORM - GitLab attributes 29% revenue growth to its AI-native DevSecOps platform, enhancing human-AI collaboration
CLOUD-AGNOSTIC PLATFORM - Sustained growth driven by cloud-agnostic, model-neutral DevSecOps platform with comprehensive AI capabilities
OPERATING MARGIN EXPANSION - Significant year-over-year operating margin expansion reflects improved operational efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $236 mln | $227.20 mln (26 Analysts) |
Q2 Adjusted EPS | Beat | $0.25 | $0.16 (25 Analysts) |
Q2 EPS | -$0.06 | ||
Q2 Gross Margin | 88.0% | ||
Q2 Adjusted Gross Margin | 90.0% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for GitLab Inc is $60.00, about 20.5% above its September 2 closing price of $47.69
The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 58 three months ago
Press Release:
