GitLab experiences strong revenue growth and tough competition in DevSecOps market
- GitLab (GTLB) experiences strong demand for its DevSecOps platform, leading to a 27% year-over-year revenue increase to $214.4 million in Q1 of fiscal 2026. The company boasts 10,104 customers with more than $5K of Annual Recurring Revenue (ARR) and 1,288 customers with more than $100K of ARR.
- GitLab introduces GitLab 18 and GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS. It also achieves FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government. The company’s partnerships with Google Cloud, AWS, and Zscaler help expand its reach among large enterprise customers.
- GitLab faces tough competition in the DevSecOps space, particularly from Microsoft (MSFT) and Atlassian (TEAM). Microsoft’s integration of GitHub and Azure DevOps poses a challenge, while Atlassian’s suite of tools like Jira and Bitbucket compete in the development and DevOps workflows segment.
- GitLab’s stock performance shows a 17.7% year-to-date decline. Trading at a premium with a forward 12-month Price/Sales of 7.51X, GTLB has a Value Score of F. The Zacks Consensus Estimate for Q2 fiscal 2026 earnings is 16 cents per share, indicating a 6.67% year-over-year increase.
- The consensus estimate for fiscal 2026 earnings for GitLab is 75 cents per share, showing 6.6% growth over the past 30 days. The company holds a Zacks Rank #3 (Hold). Check out the 7 Best Stocks for the Next 30 Days for more investment opportunities.
Read more at Nasdaq: GitLab’s DevSecOps Growth Momentum Continues: A Sign for More Upside?