GitLab (GTLB) stock was down 8.3% in Thursday’s pre-market trading, as the software-development tools provider’s upbeat results for the second quarter of Fiscal 2026 were overshadowed by the news of the CFO’s exit and a soft revenue outlook for the full year. The company announced that CFO Brian Robins plans to step down from his position, effective September 19. Robins will take up the CFO role at cloud-based data storage company Snowflake (SNOW). GitLab expects to name Vice President of Finance James Shen as the interim CFO.
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GitLab Delivers Q2 Earnings Beat
GitLab reported a 29% year-over-year growth in its Q2 FY26 revenue to $236 million, reflecting strong demand for its artificial intelligence (AI)-native DevSecOps platform. The Q2 topline exceeded analysts’ revenue estimate of $226.9 million.
Meanwhile, adjusted earnings per share (EPS) of $0.24 grew 60% compared to the prior-year quarter, surpassing the Street’s consensus of $0.16.
The company highlighted that its remaining performance obligation (RPO) rose 32% year-over-year to $988.2 million. Additionally, the number of customers with annual recurring revenue (ARR) of more than $100,000 grew 25% year-over-year to 1,344.
GTLB’s Q3 and Full-Year Guidance
For Q3 FY26, GitLab expects adjusted EPS in the range of $0.19 to $0.20 and revenue between $238 million and $239 million. Analysts expected adjusted EPS of $0.19 on revenue of $241.1 million.
Meanwhile, GitLab raised its full-year adjusted EPS outlook to the range of $0.82 to $0.83, up from its prior guidance of $0.74 to $0.75. However, the company reiterated its Fiscal 2026 revenue forecast in the range of $936 million to $942 million. Wall Street was expecting adjusted EPS of $0.75 on revenue of $940.8 million.
Top Bank of America Analyst Weighs in on GTLB Q2 Results
Reacting to the Q2 print, Bank of America Securities analyst Koji Ikeda reiterated a Buy rating on GitLab stock with a price target of $72. While the company delivered market-beating Q2 results, Ikeda believes that “debate will likely fall squarely on its FY26 revenue guidance which was only reiterated.”
This would spark questions on whether the company is being conservative to maintain its guidance and not raise it following the Q2 beat, or whether something “more ominous is happening with demand.” Ikeda believes that GitLab is being conservative with its revenue guidance, particularly given the ongoing executive changes.
Meanwhile, Ikeda noted that demand strength is reflected in the Q2 FY26 subscription revenue growth, which accelerated to 30.3% from 28.6% in the first quarter. The analyst continues to view GitLab as a long-term share gainer in the DevSecOps market and views the pullback in GTLB stock as an attractive buying opportunity.
Is GTLB Stock a Buy, Sell, or Hold?
Currently, GitLab stock scores a Moderate Buy consensus rating based on 20 Buys and seven Holds. The average GTLB stock price target of $60.54 indicates 29.1% upside potential from current levels.
It is important to note that these ratings/price targets may change based on analysts’ reactions to the Q2 results.
