Shares of GitLab GTLB have declined 12.9% in the year-to-date period, underperforming the broader Zacks Computer and Technology sector's 11.9% growth. The weakness reflects cautious enterprise IT spending, slower customer expansion and intense competition from Microsoft-owned GitHub, Atlassian and other DevSecOps vendors. These factors have weighed on investor sentiment despite GitLab's continued enterprise customer growth and expanding artificial intelligence (AI) portfolio.
However, GitLab remains focused on strengthening its position in AI-powered software development. It recently launched GitLab 19.2, introducing governed agentic AI capabilities that help enterprises automate software development while maintaining security, compliance and human oversight. The release expands the GitLab Duo Agent Platform with Dependency Scanning Auto-Remediation, which automatically fixes vulnerable software dependencies, Security Review Flow, which detects complex application logic and authorization vulnerabilities, and general availability of Duo CLI and Custom Flows, enabling developers to automate multi-step workflows directly from the command line.
The latest release reflects the growing need for governed AI across enterprises. As AI coding assistants accelerate software development, organizations are increasingly facing bottlenecks in testing, security reviews, compliance and deployment. GitLab addresses these challenges by embedding governance, security and policy enforcement directly into its unified DevSecOps platform, allowing enterprises to scale AI-assisted software development without sacrificing control.
GitLab Benefits From Expanding AI Portfolio
GitLab is benefiting from the rapid adoption of governed AI automation within enterprise DevSecOps environments. The company’s latest release builds on a series of AI initiatives introduced throughout 2026. Earlier this year, it expanded its agentic AI capabilities with automated security remediation, intelligent pipeline setup and delivery analytics to streamline software development and DevSecOps workflows. GitLab also broadened access to AI through GitLab Credits, flat-rate AI code reviews and more flexible consumption options, making enterprise AI adoption more accessible across the software development lifecycle.
GitLab Inc. Price and Consensus
GitLab Inc. price-consensus-chart | GitLab Inc. Quote
The rapid rise of AI-generated code is creating a larger opportunity for GitLab's unified DevSecOps platform. In April 2026, platform engagement remained strong, with code pushes across paid SaaS customers increasing 49% year over year and CI pipeline growth accelerating to 38%. As enterprises face growing testing, security and governance requirements, they are increasingly turning to GitLab's platform. In the first quarter of fiscal 2027, the Duo Agent Platform generated more net new annual recurring revenues (ARR) than Duo Pro and Duo Enterprise combined achieved in any previous quarter. Revenues grew 23% year over year to $264.2 million, while the paid consumption run rate exceeded $20 million.
Enterprise customers, especially in regulated industries like banking and biotech, are demanding platform-level governance, audit trails and policy enforcement as they scale AI adoption. In the first quarter of fiscal 2027, a top 10 U.S. bank piloted the Duo Agent Platform and reported significant productivity gains, with developers saving 1.5 hours per task and plans to expand usage nearly 20-fold. CSL Behring, a global biotech leader, deepened its commitment to GTLB’s platform specifically because of its embedded AI governance capabilities.
GitLab’s Strong Q2 FY27 Outlook
GitLab's expanding AI platform, growing enterprise adoption and continued product innovation position the company well for sustained top-line growth.
For the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $273.30 million, indicating year-over-year growth of 15.82%.
The consensus mark for second-quarter fiscal 2027 earnings is pegged at 18 cents per share, unchanged over the past 30 days. The figure implies a year-over-year decrease of 25%.
GTLB's Zacks Rank & Other Stocks to Consider
Currently, GitLab flaunts a Zacks Rank #1 (Strong Buy).
Digital Turbine APPS, Dell Technologies DELL and Analog Devices ADI are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Analog Devices sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 66.7% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 214.8% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of ADI have gained 38.4% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.
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