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.
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.
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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