GitLab GTLB delivered first-quarter fiscal 2027 non-GAAP earnings of 23 cents per share, which beat the Zacks Consensus Estimate of 20 cents by 15%.
Total revenues were $264.2 million, topping the consensus mark of $254 million by 4.04%. The top line increased 23% year over year, supported by solid demand for GitLab’s DevSecOps platform.
However, GitLab shares declined 3.52% in pre-market trading.
GitLab’s Q1 Top-Line Details
Subscriptions, self-managed and SaaS revenues (90.6% of total revenues) increased 18% year over year to $239.3 million, beating the Zacks Consensus Estimate by 3.16%. License, self-managed and other revenues (9.4% of total revenues) rose 25% year over year to $24.9 million.
GitLab Inc. Price, Consensus and EPS Surprise
GitLab Inc. price-consensus-eps-surprise-chart | GitLab Inc. Quote
GitLab’s revenue growth was supported by continued strength in enterprise adoption and customer expansion metrics. Customers with more than $5,000 of ARR increased to 10,831 (up 7% year over year), while customers with more than $100,000 of ARR rose to 1,519 (up 18%). Dollar-Based Net Retention Rate was 117%.
Contracted demand also improved. Total RPO grew 18% year over year to $1.1 billion, while current RPO increased 24% year over year to $724.1 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 13.1% year over year to $57.9 million. Sales and marketing expenses were up 19.2% year over year to $101.9 million. General and administrative expenses increased 11.7% year over year to $34.3 million in the reported quarter.
Profitability improved year over year. GitLab reported non-GAAP operating income of $37.5 million compared with $26.1 million a year ago. The non-GAAP operating margin expanded to14.2% from 12.2%. Non-GAAP gross margin was 87.7% in the first quarter of fiscal 2027.
GitLab’s Balance Sheet & Cash Flow
As of April 30, 2026, cash and cash equivalents and short-term investments were $1.36 billion compared with $1.25 billion as of Jan. 31, 2026.
In the reported quarter, the company generated cash flow from operations of $149.2 million compared with $45.7 million in the previous quarter.
Adjusted free cash flow was $146.7 million as of April 30, 2026, compared with $41.7 million as of Jan. 31, 2026.
GitLab Offers Q2 & FY27 Guidance
For the second quarter of fiscal 2027, GitLab expects revenues between $272 million and $274 million.
Non-GAAP operating income is expected to be in the range of $30-$32 million for the fiscal second quarter.
Non-GAAP earnings for the fiscal second quarter are expected to be between 17 cents and 18 cents per share.
For fiscal 2027, GitLab raised revenue guidance to between $1.112 billion and $1.118 billion.
Non-GAAP operating income is expected to be in the range of $135-$141 million for fiscal 2027.
Non-GAAP earnings are expected to be between 79 cents and 82 cents per share.
GitLab’s Zacks Rank & Stocks to Consider
Currently, GitLab carries a Zacks Rank #3 (Hold).
Micron Technology MU, Ciena CIEN and Amphenol APH are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. MU and CIEN each sport a Zacks Rank #1 (Strong Buy), while APH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have soared 274.2% in the year-to-date period. The company is scheduled to release third-quarter fiscal 2026 results on June 24.
Ciena shares have returned 168.1% in the year-to-date period. The company is set to report second-quarter fiscal 2026 results on June 4.
Amphenol shares have gained 9.9% in the year-to-date period. The company is expected to report second-quarter fiscal 2026 results on July 29.
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