Marketdash
Back to News

GitLab Beats Earnings Expectations But Stock Falls on Guidance

MarketDash Editorial Team
5 days ago
GitLab delivered a solid earnings beat for Q3 and raised its full-year outlook, but investors sent shares lower in after-hours trading. The company also announced a new CFO as it continues scaling its developer platform business.

GitLab Inc. (GTLB) reported better-than-expected third-quarter results on Tuesday, but the market wasn't impressed. Shares tumbled in after-hours trading despite the earnings beat and raised guidance.

The Numbers

GitLab posted earnings of 25 cents per share for the quarter, comfortably ahead of the 20-cent consensus estimate. Revenue came in at $244.35 million, beating Wall Street's forecast of $239.63 million.

The company also raised its fiscal 2026 outlook. Adjusted EPS guidance now sits at 95 to 96 cents, well above the previous 83-cent estimate. Revenue projections climbed to $946 million to $947 million, topping the $941.13 million analysts expected.

Leadership Changes and Market Position

GitLab announced that Jessica Ross will step in as chief financial officer starting January 15, 2026, marking a significant addition to the executive team.

CEO Bill Staples highlighted the company's growing relevance in the software development landscape. "More code means more of a need for GitLab," Staples said, emphasizing how the platform has become essential infrastructure for developers.

"Engagement is growing across our platform as we are a critical part of how our customers deliver high-quality, secure software," he added.

Market Reaction

Despite the positive numbers and upbeat guidance, GitLab shares fell 7.86% to $39.96 in extended trading Tuesday. The drop suggests investors may be looking for even stronger growth metrics or have concerns about future execution despite management's optimistic outlook.

Back to News

GitLab Beats Earnings Expectations But Stock Falls on Guidance

MarketDash Editorial Team
5 days ago
GitLab delivered a solid earnings beat for Q3 and raised its full-year outlook, but investors sent shares lower in after-hours trading. The company also announced a new CFO as it continues scaling its developer platform business.

GitLab Inc. (GTLB) reported better-than-expected third-quarter results on Tuesday, but the market wasn't impressed. Shares tumbled in after-hours trading despite the earnings beat and raised guidance.

The Numbers

GitLab posted earnings of 25 cents per share for the quarter, comfortably ahead of the 20-cent consensus estimate. Revenue came in at $244.35 million, beating Wall Street's forecast of $239.63 million.

The company also raised its fiscal 2026 outlook. Adjusted EPS guidance now sits at 95 to 96 cents, well above the previous 83-cent estimate. Revenue projections climbed to $946 million to $947 million, topping the $941.13 million analysts expected.

Leadership Changes and Market Position

GitLab announced that Jessica Ross will step in as chief financial officer starting January 15, 2026, marking a significant addition to the executive team.

CEO Bill Staples highlighted the company's growing relevance in the software development landscape. "More code means more of a need for GitLab," Staples said, emphasizing how the platform has become essential infrastructure for developers.

"Engagement is growing across our platform as we are a critical part of how our customers deliver high-quality, secure software," he added.

Market Reaction

Despite the positive numbers and upbeat guidance, GitLab shares fell 7.86% to $39.96 in extended trading Tuesday. The drop suggests investors may be looking for even stronger growth metrics or have concerns about future execution despite management's optimistic outlook.