GitLab Inc. (NASDAQ:GTLB) shares are trading lower Wednesday after the company reported first-quarter financial results and issued second-quarter sales guidance with a midpoint below estimates on Tuesday after the market closed.
What To Know: The company reported adjusted earnings per share of 17 cents, beating the consensus estimate of 15 cents. In addition, the Gitlab reported sales of $214.51 million, beating the consensus estimate of $213.16 million, and representing a 27% year-over=year increase..
“First quarter fiscal year 2026 results underscore the power of our AI-native DevSecOps platform to help customers deliver mission-critical software. We’re giving every developer the AI-driven edge they need to innovate faster and more efficiently,” said Bill Staples, GitLab CEO.
Outlook: Gitlab sees second-quarter adjusted earnings per share from 16 cents to 17 cents, versus the consensus estimate of 16 cents. In addition, the company sees sales from $226 million to $227 million, versus the consensus estimate of $227.16 million.
The company now expects fiscal-year adjusted earnings per share from 74 cents to 75 cents, versus the consensus estimate of 72 cents. It previously expected adjusted earnings per share from 68 cents to 72 cents.
Gitlab anticipates fiscal-year sales from $936 million to $942 million, versus the consensus estimate of $939.31 million.
Analyst Changes: Following the earnings report, multiple analysts announced price target adjustments.
- Needham analyst Mike Cikos maintained a Buy rating on GitLab and lowered the price target from $85 to $55.
- BTIG analyst Gary Powell maintained a Buy rating on GitLab and lowered the price target from $86 to $67.
- Wells Fargo analyst Michael Turrin maintained an Overweight rating on GitLab and lowered the price target from $65 to $60.
- UBS analyst Karl Keirstead maintained a Buy rating on GitLab and lowered the price target from $85 to $73.
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GTLB Price Action: At the time of writing, Gitlab stock is trading 9.43% lower at $43.94, according to data from Benzinga Pro.
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