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On Tuesday, BTIG analysts maintained their bullish stance on GitLab Inc (NASDAQ:GTLB), reiterating a Buy rating and a price target of $86.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows analyst targets ranging from $60 to $90, with 24 analysts recently revising their earnings expectations upward. The firm’s positive outlook follows GitLab’s robust fiscal fourth-quarter results, which outperformed expectations, and a fiscal year 2026 guidance that aligned with market predictions.
GitLab reported a revenue of $211.4 million, marking a year-over-year increase of 29.1%, surpassing BTIG’s estimate of $205.9 million and the consensus estimate of $206.2 million. The company’s operating income and free cash flow (FCF) for the quarter also exceeded forecasts, signaling a strong financial performance. InvestingPro data reveals impressive gross profit margins of 89% and healthy liquidity with a current ratio of 2.57, indicating solid operational efficiency.
The company’s guidance for fiscal year 2026 projects revenues of approximately $939 million, representing a 23.7% increase year-over-year. This forecast is slightly above BTIG’s previous estimate of $931.8 million and closely matches the consensus estimate of $938.9 million.
Analysts at BTIG highlighted the continued strength in GitLab’s premium Ultimate tier, noting encouraging trends in large deal activities. They also pointed out that new products, such as Duo Enterprise and GitLab Dedicated, are gaining traction in the market.
Looking ahead, BTIG anticipates multiple growth drivers for GitLab, including new product initiatives and broader secular trends within the DevSecOps market. The firm slightly increased its growth forecasts for fiscal year 2026 while maintaining the $86 per share price target, reaffirming their Buy recommendation for GitLab stock. For deeper insights into GitLab’s valuation and growth prospects, InvestingPro subscribers can access additional ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.
In other recent news, GitLab Inc. reported strong financial results for the fourth quarter of fiscal year 2025, exceeding Wall Street’s expectations. The company achieved an earnings per share of $0.33, surpassing the anticipated $0.23, and generated revenue of $211.4 million, which was higher than the forecasted $206.15 million. This performance marked a 29% year-over-year increase in revenue. GitLab’s full-year revenue reached $759.2 million, reflecting a 31% rise from the previous fiscal year. The company’s strategic focus on expanding its customer base and enhancing product offerings contributed to this robust growth.
Mizuho (NYSE:MFG) Securities, despite reducing GitLab’s stock price target from $80 to $72, maintained an Outperform rating on the company’s shares. The analysts cited GitLab’s ability to expand its customer base and implement price increases as key factors driving its growth. GitLab’s initial revenue guidance for fiscal year 2026 was slightly above Mizuho’s estimate but marginally below the consensus, yet the analysts viewed this guidance as conservative.
GitLab’s management highlighted a strong demand for its Ultimate, Dedicated, and Duo product tiers, and the company continues to lead in the DevSecOps market with new AI integrations. The firm reported a strong dollar-based net retention rate of 123%, indicating successful upselling and customer retention. GitLab has projected revenue between $936 million and $942 million for fiscal year 2026, with an expected non-GAAP net income per share ranging from $0.68 to $0.72.
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