GitLab downgraded to Neutral at Goldman Sachs on slowing growth

Goldman Sachs downgraded GitLab (GTLB) to Neutral from Buy with a price target of $50, down from $63, following the company’s “underwhelming” fiscal Q1 results and guidance. The double-digit stock reaction in after-hours trading reflects the lowest revenue beat in company history and the reiteration of GitLab’s FY26 revenue guidance, implying a modestly worse second half, the analyst tells investors. The firm believes these results suggest that, if current trends hold, growth could decelerate to 20% or below, the firm says. While the firm continues to believe that GitLab is “emerging as a clear leader in the fragmented DevOps market,” it prefers to remain on the sidelines until seeing further proof that greater than 20% growth is sustainable, the analyst added.