TLDR
- GitLab stock jumped 21% to $54.53 premarket after Q2 earnings and revenue beat analyst expectations.
- Revenue came in at $286.3 million, up 21% year over year, beating the $273.1 million estimate.
- Adjusted EPS was 25 cents, well above the 18-cent consensus.
- William Blair upgraded GTLB to Market Perform from Underperform but stopped short of a Buy rating.
- GitLab raised its full-year fiscal 2027 revenue outlook to $1.131 billion.
GitLab stock was up 21% to $54.53 premarket on Wednesday after the company posted a strong second-quarter earnings beat. The stock had already gained 46% over the three months through Tuesday’s close.
Q2 revenue came in at $286.3 million, up 21.3% year over year and ahead of the $273.1 million analyst estimate. Adjusted EPS of 25 cents beat the 18-cent consensus. Adjusted operating income hit $42.6 million, topping the expected $31.3 million.
The quarter showed strength across the board. Deals worth at least $500,000 more than doubled from a year earlier, rising over 150%. Ultimate-tier ARR grew around 35% and now accounts for 59% of total ARR. SaaS revenue jumped 36% and made up 34% of total revenue.
GITLAB $GTLB Q2’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $286.3M (Est. $273M) 🟢; +21% YoY
🔹 Adj. EPS: $0.24 (Est. $0.18) 🟢; flat YoY
🔹 Non-GAAP Oper Income: $42.6M (Est. $31.2M) 🟢
🔹 Dollar-Based Net Retention Rate: 117%FY27 Guide:
🔹 Revenue: $1.129B-$1.133B (Est. $1.12B) 🟢… pic.twitter.com/Bk3aFvxcZJ— Wall St Engine (@wallstengine) September 1, 2026
Record gross bookings were reported for the quarter. Net ARR growth accelerated, and net dollar retention improved sequentially for the first time since 2024.
Sales Execution Improves
First-order counts more than doubled to around 1,700, while first-order net ARR rose 39%. Account executive capacity grew about 30%, and productivity per rep improved roughly 10%. SMB and midmarket activity also stabilised, and competitive win rates moved higher.
GitLab’s Duo Agent Platform saw paid consumption rise about 50% sequentially. Secure repositories grew 60%, code pushes rose 50%, and CI/CD pipelines increased roughly 40%.
The company’s flexible subscription model, Flex, drew early strong demand. GitLab also reported improving competitive win rates across geographies and customer types.
Full-Year Outlook Raised
GitLab lifted its full-year fiscal 2027 guidance. Revenue is now expected at $1.131 billion, up 18.4% from the prior year. Adjusted operating margin is forecast at 13.3%, and adjusted EPS is guided at 86 cents.
For Q3, GitLab guided revenue of $282 million with adjusted EPS of 20 cents.
William Blair upgraded the stock to Market Perform from Underperform. Analyst Jason Ader pointed to broad-based improvements in growth, sales execution and customer expansion as reasons for the move.
But Ader was clear this was not a full endorsement. “One quarter does not resolve long-term questions about AI-driven disruption in the dev tools market,” he wrote.
William Blair flagged competition as a key risk. GitLab competes with Microsoft’s GitHub, Anthropic’s Claude Code, and Cursor, which SpaceX recently acquired for $60 billion.
The brokerage said it still wants proof that recent bookings strength is sustainable and that Flex will drive incremental growth rather than just shift existing customer commitments. Pressure on seat-based pricing was also flagged as a risk.
Despite the strong quarter, William Blair stopped short of a Buy rating, citing the need for GitLab to prove the durability of its newer growth initiatives.
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