Upcoming Earnings Report: GitLab (NASDAQ:GTLB) is set to announce its earnings results this Wednesday afternoon, with investors keenly awaiting the outcome.
Previous Quarter Performance: In the last quarter, GitLab reported revenues of $214.5 million, surpassing analysts' expectations by 0.7% and showing a year-on-year growth of 26.8%. The company also exceeded EBITDA and billings estimates significantly.
Analyst Expectations
Projected Revenue Growth: Analysts forecast a revenue increase of 24.3% year-on-year for the current quarter, estimating revenues to reach $227 million, which is a slowdown from the 30.8% growth seen in the same quarter last year.
Earnings Per Share: Adjusted earnings are anticipated to be $0.16 per share, reflecting the company's ongoing performance.
Market Sentiment and Comparisons
Analyst Confidence: Most analysts have maintained their estimates over the past month, indicating confidence in GitLab's performance. The company has only missed revenue estimates once in the last two years, with an average beat of 2.8%.
Peer Performance: Comparatively, JFrog reported a 23.5% year-on-year revenue growth, exceeding expectations by 3.5%, while Cloudflare achieved a 27.8% increase, beating estimates by 2.3%. JFrog's stock rose by 12.4% post-results, whereas Cloudflare's fell by 3.5%.
Stock Performance and Investor Sentiment
Recent Stock Trends: The software development sector has seen positive investor sentiment, with average share prices increasing by 3.2% over the last month. GitLab's stock has risen by 9.3% in the same period.
Analyst Price Target: GitLab is entering earnings with an average analyst price target of $62.30, significantly higher than its current share price of $48.24.
Broader Market Context
Impact of Generative AI: The article highlights the growing influence of generative AI on corporate operations, noting that major semiconductor companies like Nvidia and AMD are nearing all-time highs. It suggests a preference for a lesser-known semiconductor stock that is also benefiting from the AI trend.
GTLB
$38.59+Infinity%1D
Analyst Views on GTLB
Wall Street analysts forecast GTLB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GTLB is 54.78 USD with a low forecast of 40.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
Wall Street analysts forecast GTLB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GTLB is 54.78 USD with a low forecast of 40.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Buy
8 Hold
0 Sell
Moderate Buy
Current: 39.520
Low
40.00
Averages
54.78
High
72.00
Current: 39.520
Low
40.00
Averages
54.78
High
72.00
Truist
Miller Jump
Hold
downgrade
$44 -> $42
2025-12-03
Reason
Truist
Miller Jump
Price Target
$44 -> $42
2025-12-03
downgrade
Hold
Reason
Truist analyst Miller Jump lowered the firm's price target on GitLab to $42 from $44 and keeps a Hold rating on the shares. The company produced upside in its Q3 results but kept a lid on their Q4 outlook, officially guiding to revenue growth below 20% y/y for the first time since IPO, the analyst tells investors in a research note. The management called out small-business weakness and incremental public sector headwinds from the U.S. Government shutdown that disrupted deal timelines, with the outlook also reflecting conservatism around the recent strategic changes, Truist added.
JPMorgan
Neutral
maintain
$52 -> $53
2025-12-03
Reason
JPMorgan
Price Target
$52 -> $53
2025-12-03
maintain
Neutral
Reason
JPMorgan raised the firm's price target on GitLab to $53 from $52 and keeps a Neutral rating on the shares. The company reported a solid quarter but issued a cautious outlook, the analyst tells investors in a research note.
Morgan Stanley
Overweight
downgrade
$60 -> $55
2025-12-03
Reason
Morgan Stanley
Price Target
$60 -> $55
2025-12-03
downgrade
Overweight
Reason
Morgan Stanley lowered the firm's price target on GitLab to $55 from $60 and keeps an Overweight rating on the shares. A smaller beat and decelerating growth in Q3 will weigh on shares, says the analyst, though the firm views the bear case as "overstated" and sees the launch of Duo Agent as a catalyst to improve sentiment. Still, usage-based monetization will take time, the analyst tells investors.
TD Cowen
Buy
downgrade
$62 -> $56
2025-12-03
Reason
TD Cowen
Price Target
$62 -> $56
2025-12-03
downgrade
Buy
Reason
TD Cowen lowered the firm's price target on GitLab to $56 from $62 and keeps a Buy rating on the shares. The firm said they reported a solid 3Q with revenue growth of 25%, a roughly 2% beat versus. the roughly 3% TTM avgerage. Softness in US Fed and SMB led to more muted upside, and the in-line 4Q guide incorporates these dynamics.
About GTLB
GitLab Inc. provides DevSecOps Platform, is built on a single codebase, unified data model, and user interface. The Company offers customers flexible deployment options, including a self-managed offering, as well as multi-tenant and single-tenant (GitLab Dedicated) software-as-a-service (SaaS) solutions. It offers the DevSecOps Platform in three different subscription tiers, namely Free, Premium and Ultimate. The DevSecOps Platform enables its customers to move their DevOps workflow across any hybrid or multi-cloud environment. Its subscription plans are available as a self-managed offering that customers download to run in their own on-premises environment or hybrid cloud environments, and also a SaaS offering, which is offered as either multi-tenant or single-tenant (called GitLab Dedicated). The Company also provides related training and professional services. Its SaaS products provide access to hosted software as well as support.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
