GitLab Shares Fall 7% Despite Q4 Beat as 2027 EPS Outlook Disappoints

Font: Financial Modeling Prep  • Mar 04, 2026

GitLab Inc. (NASDAQ: GTLB) reported fourth-quarter results that surpassed analyst expectations, but shares dropped more than 7% intra-day Wednesday after the company issued fiscal 2027 earnings guidance below Wall Street forecasts.

The DevSecOps software provider posted adjusted earnings per share of $0.30 for the quarter ended January 31, beating the $0.23 analyst consensus. Revenue rose 23% year over year to $260.4 million, exceeding the $252 million estimate.

However, GitLab projected fiscal 2027 adjusted earnings per share between $0.76 and $0.80, significantly below the analyst consensus of $1.03. The midpoint of $0.78 represented roughly a 24% shortfall versus expectations. In contrast, the company forecast fiscal 2027 revenue between $1.1 billion and $1.12 billion, with the midpoint of $1.11 billion exceeding the $1 billion consensus estimate by about 11%.

For the first quarter of fiscal 2027, GitLab expects revenue of $253 million to $255 million and adjusted earnings per share between $0.20 and $0.21, with adjusted operating income projected at $32 million to $34 million.

Adjusted operating margin improved to 21% in the fourth quarter, up from 18% in the same period a year earlier. GitLab generated $45.8 million in operating cash flow and $41.8 million in adjusted free cash flow during the quarter.

For the full fiscal year 2026, revenue totaled $955.2 million, marking a 26% year-over-year increase. The company also surpassed $1 billion in annual recurring revenue and produced $219.6 million in adjusted free cash flow.

GitLab’s board authorized a $400 million share repurchase program, reflecting confidence in the company’s long-term growth outlook.