GitLab GTLB reported third-quarter fiscal 2026 non-GAAP earnings of 25 cents per share, beating the Zacks Consensus Estimate by 25%. The company reported earnings of 23 cents per share in the year-ago quarter.
Total revenues of $244.35 million beat the consensus mark by 2.41% and increased 25% year over year. The upside can be attributed to the strong demand for its DevSecOps platform.
GitLab shares plunged 8.74% in pre-market trading.
GitLab’s Top-Line Details
Subscriptions, self-managed, and SaaS (91.4% of total revenues) revenues increased 27.4% year over year to $223.3 million, beating the Zacks Consensus Estimate by 3.92%. License, self-managed, and other revenues (8.6% of total revenues) rose 1.4% year over year to $21.1 million.
GitLab Inc. Price, Consensus and EPS Surprise
GitLab Inc. price-consensus-eps-surprise-chart | GitLab Inc. Quote
SaaS revenues contributed 31% to total revenues and surged 36% year over year, driven by the strong adoption of GitLab Dedicated, AI integration and expanding customer engagement.
Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,475, up 10% year over year. Customers with more than $100K of ARR increased to 1,405, up 23% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
The dollar-based Net Retention Rate was 119% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 27% year over year to $1 billion. The current RPO increased 28% year over year to $659.1 million.
GitLab’s Operating Details
On a non-GAAP basis, research & development expenses increased 13.2% year over year to $53.2 million. Sales and marketing expenses were up 12% year over year to $87.6 million. General and administrative expenses increased 17% year over year to $32 million in the reported quarter.
Operating income was $43.7 million on a non-GAAP basis compared with the year-ago quarter’s $25.9 million.
GitLab’s Balance Sheet & Cash Flow
As of Oct. 31, 2025, cash and cash equivalents and short-term investments were $1.20 billion compared with $1.16 billion as of July 31, 2025.
In the reported quarter, the company generated a cash flow from operations of $31.4 million compared with $49.4 million in the previous quarter.
As of Oct. 31, 2025, the adjusted free cash flow was $27.24 million compared with $49.4 million as of July 31, 2025.
GitLab Initiates Q4 & FY26 Guidance
For the fourth quarter of fiscal 2026, GitLab expects revenues between $251 million and $252 million, indicating approximate growth of 19% year over year.
Non-GAAP operating income is expected to be in the range of $38-$39 million for the fiscal fourth quarter.
Non-GAAP earnings for the fiscal fourth quarter are expected to be between 22 cents and 23 cents per share.
For fiscal 2026, GitLab expects revenues between $946 million and $947 million, indicating growth of approximately 25% year over year.
Non-GAAP operating income is expected to be in the range of $147-$148 million for fiscal 2026.
Non-GAAP earnings are expected to be between 88 cents and 89 cents per share.
GitLab’s Zacks Rank & Other Stocks to Consider
Currently, GitLab has a Zacks Rank #2 (Buy).
Advanced Energy Industries AEIS, Allot ALLT, and Amphenol APH are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each stock presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries’ shares have surged 77.7% in the past six months. The Zacks Consensus Estimate for Advanced Energy Industries' 2025 earnings is pegged at $6.23 per share, indicating an increase of 9.6% over the past 30 days. The figure also rose 67.92% from the year-ago quarter’s reported figure.
Allot shares have gained 7.7% in the past six months. The Zacks Consensus Estimate for Allot 2025 earnings is pegged at 22 cents per share, which increased 57.1% over the past 30 days. This indicates year-over-year growth of 450%.
Amphenol shares have gained 54.4% in the past six months. The Zacks Consensus Estimate for Amphenol’s 2025 earnings has increased 2.17% to $3.29 per share in the past 30 days, indicating year-over-year growth of 74.07%.
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