GitLab Q2 2027: AI Demand Drives Record Bookings and a Guidance Lift
As seen on the 24/7 Wall St. homepage on September 1, 2026.
Net ARR growth topped 40% year over year on record gross bookings, the clearest sign yet that AI coding demand is pulling work onto GitLab's platform. Management lifted full-year guidance to roughly $1.13 billion, though GAAP losses widened on restructuring and operating cash flow turned negative.
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GitLab's fiscal second quarter of 2027 revenue rose 21% year over year to $286.25 million, beating expectations, and adjusted earnings per share of $0.24 came in above the consensus estimate. That marks the tenth consecutive quarter the company has beaten consensus EPS estimates.
Net ARR growth exceeded 40% year over year on record gross bookings, which CEO Bill Staples called an exceptional quarter. Existing customers keep expanding their spend, with the Dollar-Based Net Retention Rate holding at 117% and accelerating sequentially.
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Management lifted full-year fiscal 2027 revenue guidance to a range of $1,129 million to $1,133 million. The raised outlook reflects confidence that AI-driven software development is pulling more workflow onto the platform, with new products like GitLab Duo, GitLab Flex, and GitLab Orbit designed to capture that expanding demand.
GAAP operating losses widened on $19.42 million in restructuring charges, and operating cash flow turned negative in the quarter while share repurchases drew down cash and equivalents. Investors will want to track whether the strong bookings momentum translates into positive cash generation in the quarters ahead.
Mentioned: GTLB