Wall Street Just Sent a Clear Signal on GTLB — Nine Analysts Cut Price Targets After FY27 Guidance Disappoints

Gitlab (Nasdaq: GTLB) walked into earnings with a strong quarter and walked out with nine analyst price target cuts. Wall Street’s verdict on GitLab is clear: the Q4 beat is irrelevant. What matters is that FY27 guidance disappointed badly enough to trigger a broad re-rating across the Street.

The Guidance Problem Is Real

GitLab posted a genuinely solid Q4. Revenue came in at $260.40M, a +23.2% year-over-year gain that beat estimates by roughly $8M. Non-GAAP EPS of $0.30 crushed the $0.23 consensus by 30%. The company crossed $1B in total ARR and posted 155 customers with over $1M in ARR, up 26% year-over-year.

None of that mattered once FY27 guidance landed. The company guided FY27 non-GAAP EPS to $0.76-$0.80 — a meaningful step down from the $0.96 in non-GAAP EPS GitLab actually delivered in FY26. Revenue growth is also decelerating, with FY27 revenue guidance of $1.099B-$1.118B implying a growth rate that multiple analysts noted came in below the consensus expectation of roughly 15-17%.

That EPS regression is the core issue. When a growth company guides earnings lower in absolute terms, analysts reprice risk immediately.

What Nine Analysts Actually Said

The breadth of the cuts tells the story. This was not one or two firms trimming conservatively. It was a coordinated re-rating across bulls and bears alike.

• Barclays lowered its target to $25 from $29, keeping its Underweight rating.
• JPMorgan cut to $28 from $53, keeping Neutral, acknowledging the $1B ARR milestone but calling FY27 guidance disappointing.
• Piper Sandler downgraded outright to Neutral from Overweight, cutting its target to $28 from $55.
• Wells Fargo lowered to $26 from $45, keeping Equal Weight, framing FY27 as a year of stabilization.
• BTIG cut to $30 from $32, keeping Buy, flagging that the 16% FY27 growth framework was below the consensus of 18.6%.
• Canaccord’s Kingsley Crane lowered to $40 from $70, keeping Buy, and noted the highest net new ARR in company history.
• BofA cut to $58 from $72, keeping Buy, calling results mixed.
• Bernstein lowered to $60 from $70, keeping Outperform, but flagged this as the fourth consecutive quarter guiding below consensus.
• UBS cut to $44 from $51, keeping Buy.

The Bernstein note is the most damning detail in that list. Four consecutive quarters guiding below consensus is a pattern, not a one-time miss.

The Gap Between Price and Analyst Targets

GitLab is trading at $24.75 as of this morning, down 34% year-to-date and down 60.59% over the past year. The stock has shed roughly a third of its value in just the past month alone, down nearly 30% over the last 30 days.

The most bearish analyst on the Street, Barclays, has a $25 target. The stock is already below that. Bulls like Bernstein and BofA are sitting on targets of $58-$60, implying significant upside from current levels — but those same analysts just slashed their targets and are acknowledging a company in a guidance credibility hole.

TD Cowen downgraded to Hold, adding another voice to the cautious camp. Meanwhile, Eminence Capital disclosed a 5.1% passive stake in a February 13G filing, suggesting at least one institutional player sees value at these levels.