Software company GitLab (GTLB) is scheduled to report its results for the first quarter of Fiscal 2026 after the market closes on Tuesday, June 10. GTLB stock has declined more than 13% year-to-date due to concerns about a slowdown in enterprise spending amid macro uncertainty and tariff woes. However, most Wall Street analysts are bullish on GitLab stock and see solid upside potential from current levels, as they expect the company to gain from artificial intelligence (AI)-powered growth.
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GitLab is a DevSecOps platform that helps developers build, secure, and deploy software at scale, thus boosting developer productivity and improving operational efficiency. Wall Street expects GitLab’s Q1 FY26 adjusted EPS (earnings per share) to jump to $0.15 from $0.03 in the prior-year quarter. Revenue is estimated to rise about 26% year-over-year to $212.96 million.
Analysts Weigh in on GitLab Stock
Heading into Q1 FY26 results, KeyBanc analyst Jason Celino reiterated a Buy rating on GTLB stock with a price target of $60. The 4-star analyst sees the possibility for GitLab to beat the consensus expectation of about 26% revenue growth and 10.1% operating margin, driven by continued adoption of the company’s Duo and Dedicated offerings. He expects most of the upside to flow through the full-year guidance, in line with the company’s track record of full-year revenue and operating income upward revisions.
The analyst stated that he will be paying attention to management’s commentary on traction within the U.S. Federal/Public Sector segment, given the tighter budgetary environment. Celino also highlighted changes made by GitLab to its pricing and packaging strategy, mainly the access to Duo Code Suggestions and Duo Chat to Premium and Ultimate users for free. The analyst feels that these changes will showcase GitLab’s AI features to the users and encourage them to upgrade to the full Duo Pro and Enterprise offerings. Overall, Celino believes that GTLB stock offers a favorable risk-reward, with shares currently trading at a healthy discount to other software peers that are generating a growth of more than 20%.
Likewise, TD Cowen analyst Derrick Wood reiterated a Buy rating on GitLab stock, saying that checks indicate solid demand in DevSecOps, with “strong upgrade motions for the Ultimate SKU & growing traction of Duo.” The 5-star analyst expects GitLab to deliver another solid beat, with growth likely in the high 20% range. At nearly 6x EV/sales (2026 estimate) for a mid-20% growth outlook, Wood views GitLab stock’s valuation as highly attractive and argues that the negative sentiment seems overblown. However, he lowered GitLab stock’s price target to $75 from $82 due to recent valuation pressures in the sector.
Is GTLB a Good Stock to Buy?
With 12 Buys and two Hold recommendations, Wall Street has a Strong Buy consensus rating on GitLab stock. The average GTLB stock price target of $69.14 implies about 42% upside potential from current levels.
