Live: GitLab Reports Q4 Earnings After the Bell

Well, what is there to say?

GitLab has been one of the worst stocks in the market recently. That hasn’t necessarily been their fault. The stock is growing at a solid clip, but software stocks have been under extreme pressure.

Yet, there have been concerns around the stock. One of which has been management turnover. Tonight, GitLab had the opportunity to defend their 2027 guidance on their call.

The reality is they largely failed. It’s a tough position for a new CFO to step into, but there was little on tonight’s call to distract Wall Street from the fact that the company guided to an absolutely terrible earnings figure in Fiscal 2027.

The fear heading into today’s earnings was that AI would pressure GitLab tremendously.

The extreme compression on earnings forecasts does little to change that sentiment. If you’re long GitLab (I am), this was an extremely troubling earnings.

The fact the company could have sold itself over the past year with many potential suitors and passed up on the opportunity feels like more salt in the wounds after a guidance like tonight.

Here’s an exchange between a Wall Street Analyst and GitLab on their disappointing EPS guidance for 2027:

Matthew Hedberg RBC Capital Markets, Research Division

Bill, you started the call indicating you’re not happy with current growth targets for the year. But I certainly do appreciate the 5 initiatives you outlined it seems like you guys have a lot to — that could benefit growth. Kind of thinking about some of the considerations that Jessica outlined around fiscal 2017 guidance. I guess the question is, how should we think about timing of acceleration? And you were kind of that path back to 20% or better growth. I’m sure you’re aspiring to.

William Staples Chief Executive Officer

Yes, fair question. As I think about those 5 growth initiatives, and I think about what has the biggest immediate impact on FY ’27. It really starts with the investment we’re making in go-to-market. That increased capacity to both cover our existing customers better and win new logos at an accelerated rate. As I mentioned, we’re entering the fiscal year with the highest capacity ever, and we expect a step function increase in ramp capacity starting around Q3. I So that’s how I think about GitLab for FY ’27, but really stepping back and thinking about long-term growth. Let’s remind ourselves, we just delivered the highest new net ARR year and quarter ever.

The core business is really healthy. Gross retention is at its best in the last 4 years. Every customer cohort since inception continues to expand. Win rates are stable. Engagement is growing. This is a business that’s been decelerating based on bookings patterns and lapping mechanics over the last 3 years. It’s not losing relevance. In fact, its relevance is only gaining momentum in the AI era. To address the value capture equation, that’s why we’re pursuing multiple new strategies in addition to the increased capacity to go after the TAM, we’re also introducing those new SKUs to provide additional adjacent value for customers to opt into.

It’s why we’ve also now launched dual agent platform with a new hybrid pricing model that allows customers to get value and automate full life cycle tasks and we get to charge based on work and value delivered, not just based on the seats. It’s also why we’re adjusting our coverage models and investing in included DAP credits for customers in that price-sensitive cohort to increase their value equation as well and their stickiness and growth. So long term, I believe this company has everything that needs to be a high-growth generational company and it’s ours to execute starting here in FY ’27.

GitLab’s call has been going for close to 30 minutes, and shares have generally traded sideways since they began.

They’re currently down about 4%. We’re listening to the call and will post highlights once it finishes.

The earnings call kicks off at 4:30 PM ET, and management has a lot to answer for on the EPS guidance front. As noted earlier, GTLB shares dropped sharply after the FY2027 non-GAAP EPS midpoint of $0.78 came in well below the Street’s prior estimate. The stock is currently trading at $26.70, up 1.95% on the day but well off the intraday high of $27.28, with a session low of $24.77 reflecting the initial post-earnings drop.

The stock is now down 28.4% year-to-date. All eyes are on new CFO Jessica Ross to explain the profitability gap. Watch for commentary on GitLab Credits pricing and the Duo Agent Platform’s revenue contribution timeline as potential offsets.

GitLab shares are now bouncing some, down 3% after hours.

Across the broader security space, CrowdStrike delivered strong earnings tonight with guidance that came in slightly above expectations on the revenue and adjusted EPS side. Shares of the stock are up about .6% after hours.

I saw the EPS guidance for Fiscal 2027 and said shares would likely head lower, and they’re diving.

GitLab shares are now down 6%. It’s a very disappointing result for GitLab investors after a brutal year-long stretch for the stock.

Yet, a guide of $.78 in EPS is going to require a lot of explanation from management. GitLab’s new CFO has her work cut out for her.

Another highlight from earnings, GitLab will be repurchasing $400 million in shares.

Guidance for FY 2027 calls for:

• Revenue: $1.099B to $1.118B
• Adjusted Earnings: $.76 to $.80

That is a bit below Wall Street expectations at the midpoint. The Street was expecting $1.126B next year. Yet earnings are below expectations, which could weigh on shares.

This guidance could be a fly in the ointment for GitLab investors. $.78 at the midpoint is way below the Street’s modeled $1.03 in earnings.

This is the number to watch, I’d expect shares to head lower.

GitLab earnings are out, here are the headlines:

• Adjusted EPS: $.30 (big beat)
• Revenue $260.4 (beat)

As a reminder here’s what Wall Street expected:

At first blush these numbers look great, shares are initially up 3.3%

With GitLab’s Q4 FY2026 results due after the close today, the crowd is pricing in another beat. Polymarket puts the probability of a beat at 93%, up from 79% just a week ago.

That confidence is grounded in GitLab’s most recent report. In Q3 FY2026, the company delivered non-GAAP EPS of $0.25 against a $0.20 estimate and revenue of $244.4M versus the $239.3M consensus – both clear beats. Management’s Q4 guidance called for revenue of $251M-$252M and non-GAAP EPS of $0.22-$0.23, while the Street is modeling $252.3M in revenue and $0.23 EPS.

One dynamic worth watching: this will be the first earnings report under new CFO Jessica Ross, who joined January 15, 2026, potentially signaling a shift in how management frames guidance going forward.

We are now just 5 minutes from earnings. 

Software stocks are rebounding today despite the broader market selling off. GitLab shares are up 2.7% in late trading. We’ll see if this sentiment shift continues into earnings tonight which are now about 30 minutes away.