GitLab stock price drops 3%, FY2027 earnings outlook weakens despite Q4 performance highlights

LootboxPhobia · 2026-03-03T23:52:35+00:00

GitLab's Q4 performance exceeded expectations, with earnings of $0.30 per share and revenue up 23% year-over-year. Although the overall performance was strong, the FY2027 profit guidance was below market expectations, leading to a 3% drop in stock price. Revenue for FY2027 is expected to be between $1.1 billion and $1.12 billion. The company announced a $400 million share repurchase plan to demonstrate confidence in future growth.

LootboxPhobia

2026-03-03 23:52:35

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San Francisco - GitLab Inc. (NASDAQ:GTLB) reported Q4 earnings that exceeded analyst expectations, but the stock fell 3% due to the company’s FY2027 profit guidance falling below Wall Street estimates.

The DevSecOps platform provider announced that for the quarter ending January 31, adjusted earnings per share were $0.30, beating the consensus estimate of $0.23 by $0.07. Revenue reached $260.4 million, up 23% year-over-year, surpassing the $252 million forecast.

However, the company’s FY2027 adjusted EPS guidance was $0.76–$0.80, below the analyst consensus of $1.03. The midpoint of $0.78 is 24% lower than expected. GitLab projects FY2027 revenue to be between $1.1 billion and $1.12 billion, with a midpoint of $1.11 billion, representing an 11% increase over the $1 billion consensus.

For Q1 FY2027, GitLab expects revenue of $253–$255 million, with adjusted EPS of $0.20–$0.21, and adjusted operating income of $32–$34 million.

GitLab CEO Bill Staples stated, “GitLab is at the core of how enterprises build and deliver software. The launch of the GitLab Duo Agent Platform brings intelligent orchestration to the entire software lifecycle, providing all necessary context to achieve step-change gains in every software engineering task.”

The company’s adjusted operating margin for Q4 reached 21%, up from 18% in the same period last year. GitLab generated $45.8 million in operating cash flow and $41.8 million in adjusted free cash flow during the quarter.

For the full fiscal year 2026, GitLab reported revenue of $955.2 million, a 26% increase year-over-year, with annual recurring revenue surpassing $1 billion. The company achieved $219.6 million in adjusted free cash flow for the year.

GitLab’s board approved a $400 million share repurchase program, reflecting confidence in the company’s growth trajectory.

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