GitLab Beats Q1, Analysts Lower Price Targets

GitLab reported first-quarter fiscal 2026 results with 27% revenue growth and earnings per share exceeding analyst expectations. Despite the strong results, several major analysts—including UBS, TD Cowen, RBC Capital, Truist Securities, Needham, BTIG, Wells Fargo, Scotiabank, and JP Morgan—lowered their price targets, citing concerns about softer sequential revenue growth, macroeconomic uncertainties, and potential impacts from AI adoption in the developer space. GitLab maintained its fiscal 2026 revenue guidance and continues to post strong profit margins around 89% and robust liquidity. The company also reported improvements in operational efficiency and noted gains in large enterprise customers. While the revenue beat was the smallest since GitLab went public, some analysts described the share sell-off as an overreaction and generally retained positive ratings. Management highlighted strong bookings, continued demand, and the strategic value of its AI-native DevSecOps platform.