EarningsQ2 2027 Earnings Report
MX:GTLB Q2 2027 EPS Results
Actual EPS$4.07
Consensus EPS$3.06
Beat/MissBeat by +$1.02
One Year Ago EPS$4.07
MX:GTLB Q2 2027 Revenue Results
Actual Revenue$4.86B
Expected Revenue$4.64B
Beat/MissBeat by +$222.76M
YoY Revenue Growth+21.31%
Earnings Announcement Details
QuarterQ2 2027
Date09/01/2026
TimeAfter Close
Conference CallTuesday, September 1, 2026
MX:GTLB Upcoming Earnings
Gitlab's next earnings date is estimated for December 7, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:GTLB Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, characterized by record gross bookings, accelerating net ARR and first-order growth, broad-based customer strength, improving retention, early Flex adoption, growing AI usage, profitability above expectations, and raised full-year guidance. The company also highlighted restructuring charges, collection-timing effects on free cash flow, Flex-related revenue and RPO timing effects, higher JiHu expenses, and limited near-term Duo revenue contribution, but these issues were presented as manageable or timing-related within an otherwise strong quarter.Company Guidance
Strong Q2 Revenue and Profitability
Q2 revenue was $286.3 million, up 21% year over year and roughly 5 points ahead of guidance. Non-GAAP operating income was $42.6 million, up from $39.6 million a year ago, representing an approximately 15% operating margin and exceeding expectations.
Record Gross Bookings and Accelerating Net ARR
The company delivered its largest gross bookings quarter in company history. Net ARR grew 42% year over year, described as the second-highest growth quarter in the last four years.
Record First-Order Growth
GitLab had approximately 1.7 thousand first orders in the quarter, more than double the prior year. First-order count grew more than 100% year over year, while first-order net ARR increased nearly 40% and new-logo net ARR grew 39% year over year.
Expanded Sales Capacity and Productivity
Account executive capacity increased approximately 30% year over year, productivity per representative improved 10%, and attrition improved year over year for the second consecutive quarter. The company attributed the record gross bookings and more than 40% net ARR growth to the combination of increased capacity and improved productivity.
Large-Customer Expansion
Deals of $500 thousand or more grew more than 150% year over year. Management said the result reflected its largest customers deepening their commitment to GitLab across both seats and credits.
Broad-Based Business Strength and Retention
Management reported strength across new and existing customers, multiple geographies, every customer size, and the core platform. Gross retention stayed well above 90%, while dollar-based net retention was 117%, increasing sequentially for the first time since Q1 2024.
Improvement in SMB and Mid-Market Performance
The company reported stabilization in its SMB and mid-market segments, with performance ahead of targets for both expansion and first orders. Management said the results were encouraging and reflected increased focus and investment in these segments.
Ultimate Adoption Continued to Increase
Ultimate ARR grew approximately 35% year over year and represented 59% of total ARR. Ultimate was included in 8 of the company's top 10 deals in the quarter.
Flex Early Adoption Exceeded $20 Million
After six weeks in market, more than 130 customers committed more than $20 million to Flex. Management said the early response indicated customer demand for a dollar commitment that can be allocated across seats and consumption products.
Paid Consumption Run Rate Increased
Platform-wide paid consumption run rate exceeded $40 million at the end of the quarter, up from $15 million exiting Q1 following the introduction of Flex. The company is targeting more than $100 million of paid CRR by the end of the fiscal year.
AI Product and Orbit Adoption Growth
Duo Agent Platform CRR grew roughly 50% quarter over quarter, including credit commitments, paid on-demand credits, and Flex reservations. Since its June beta opening, more than 2.2 thousand organizations enabled GitLab Orbit, an increase of 70% in four weeks; customers generated more than 170 thousand queries, with roughly 80% of query volume coming from customers connecting Orbit to external agents such as Claude Code and Code Llama.
Evidence of Increased Platform Usage
Year over year, secure repositories grew 60%, code pushes grew 50%, and CI/CD pipelines grew 40%. In the financial update, CI pipelines created and push actions were both reported as up more than 40% year over year.
Orbit Accuracy Improvement
Management said a market test of Orbit against traditional retrieval-augmented generation using 79 real merge requests showed accuracy improving from 58% to 70%.
SaaS Growth and Strong Gross Margin
Non-GAAP gross margin was 86.5%. SaaS represented 34% of total revenue and grew 36% year over year, driven by continued strength in GitLab Dedicated and Duo.
Improved Contracted-Revenue Metrics
Total RPO grew 16% year over year to $1.2 billion, current RPO grew 20% to $744.7 million, and calculated billings grew 24%, compared with 12% growth in the prior quarter.
Raised Fiscal Year Guidance
For Q3 FY27, GitLab expects revenue of $281 million to $283 million, representing approximately 15% to 16% year-over-year growth, non-GAAP operating income of $35 million to $37 million, and non-GAAP EPS of $0.19 to $0.20. Full-year revenue guidance was raised to $1.129 billion to $1.133 billion, representing approximately 18% to 19% year-over-year growth, with non-GAAP operating income of $148 million to $152 million and non-GAAP EPS of $0.85 to $0.87.
Strong Liquidity and Share Repurchases
GitLab ended Q2 with $1.3 billion in cash and investments and repurchased approximately 3.5 million shares. Approximately $245 million remained under the current repurchase authorization.
Product Road Map Expansion
GitLab launched Secrets Manager and Dedicated Runners in August, has GitLab Orbit in public beta, expects artifact management to enter public beta this quarter, and is rearchitecting its next-generation Git infrastructure to achieve roughly 100x the scale humans have required.
Public-Sector Rebound and Competitive Position
Public sector rebounded meaningfully during the quarter, with management expecting recovery to continue gradually through the rest of the year. Management also said its position versus its primary competitor was stronger than ever, with higher win rates on both first orders and expansions.
MX:GTLB Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed