GitLab Stock Soars 22% on Strong Earnings Beat and Raised Forecast

GitLab (GTLB) shares surged 22.0% in pre-market trading to $55 after the company reported a significant earnings beat for its fiscal second quarter of 2027 and raised its outlook for the full year.

Strong Earnings and Upbeat Outlook

For the quarter ending Tuesday, GitLab posted revenue of $286.3 million, an increase of 21% year-over-year. This figure came in approximately $13 million ahead of the Wall Street consensus estimate of $273.1 million. Adjusted earnings per share (EPS) were $0.25, topping analyst expectations of $0.18 by 39%.

Looking ahead, management lifted its full-year fiscal 2027 forecast. The company now expects revenue in the range of $1.129 billion to $1.133 billion and adjusted EPS between $0.85 and $0.87. Both revised outlooks are above prior analyst expectations.

Key Metrics Signal Accelerating Growth

Beneath the headline figures, several key performance indicators pointed to strengthening business momentum. For the first time since 2024, GitLab saw an acceleration in its net annual recurring revenue (ARR) growth, which exceeded 40% year-over-year.

Other positive signals for investors included:

Ad

• Dollar-based net retention improved to 117%, indicating existing customers are increasing their spending on the platform.
• Large customer contracts, defined as deals valued at $500,000 or more, grew by over 150% from the prior year, showing increased penetration in the enterprise market.

CEO William Staples noted that the proliferation of AI is driving a greater volume of software creation, which in turn increases the value of GitLab's governance, security, and control capabilities.

Market Reaction

The strong financial report prompted immediate positive reactions from Wall Street. Analyst firms including DA Davidson and Cantor Fitzgerald raised their price targets on the stock following the release.

GitLab's pre-market surge was a company-specific event, outperforming a flat broader market where the S&P 500 and Dow Jones were little changed. The move pushed the stock past its previous 52-week high of $52.38, setting a new multi-year milestone.