GitLab Q1 FY26 slides reveal 27% revenue growth, AI-native platform strategy

Introduction & Market Context

GitLab Inc. (NASDAQ:GTLB) delivered strong financial results for the first quarter of fiscal year 2026, as revealed in its investor presentation. The company reported 27% year-over-year revenue growth, reaching $214.5 million, while also demonstrating significant margin expansion. Following the announcement, GitLab’s stock rose by 1.77% in aftermarket trading to $49.50, reflecting positive investor sentiment.

The DevSecOps platform provider continues to capitalize on the growing demand for integrated software development tools, particularly as organizations seek to streamline their development processes and incorporate AI capabilities. GitLab’s presentation emphasized that "every organization must be great at developing, securing, and deploying software faster" - a market imperative that drives its business.

As shown in the following key results summary, GitLab achieved solid performance across multiple financial and operational metrics:

Quarterly Performance Highlights

GitLab’s Q1 FY26 financial results demonstrated robust growth and improving profitability. Revenue reached $214.5 million, representing a 27% increase year-over-year. The company reported a non-GAAP operating margin of 12%, a substantial improvement from the previous year, and an impressive non-GAAP adjusted free cash flow margin of 49%.

The company’s customer metrics were equally strong, with the total number of base customers growing to 10,104 and customers generating more than $100,000 in annual recurring revenue (ARR) increasing to 1,288. GitLab also maintained a dollar-based net retention rate of 122%, indicating strong expansion within its existing customer base.

The financial results summary highlights GitLab’s continued momentum and improving operational efficiency:

GitLab’s revenue growth has remained consistent over the past two years, with a compound annual growth rate (CAGR) of 30%. The company’s run-rate revenue has steadily increased from $508 million in Q1 FY24 to $858 million in Q1 FY26:

The company has also demonstrated strong customer acquisition and expansion, with both base customers and high-value customers showing consistent growth:

Strategic Initiatives

GitLab’s presentation emphasized its strategic focus on becoming the leading AI-native DevSecOps platform. The company highlighted the growing complexity in software development environments, noting that 64% of organizations want to consolidate their toolchains, while 70% report it takes more than a month to onboard new developers.

GitLab positions itself as the solution to fragmented development environments, offering an end-to-end platform that integrates all stages of the software development lifecycle. As illustrated in the following slide, the company’s platform provides a comprehensive solution compared to disconnected toolchains:

A key component of GitLab’s strategy is its AI-native approach, branded as GitLab Duo. The company is integrating AI capabilities throughout the software development lifecycle to improve productivity and efficiency:

GitLab’s AI strategy has gained industry recognition, with the company being positioned as a Leader in the 2024 Gartner (NYSE:IT) Magic Quadrant for AI Code Assistants:

The company claims its platform delivers significant return on investment, with customers achieving a 483% ROI and payback period of less than six months. During the earnings call, CEO Bill Staples emphasized the company’s ambition to "be the world’s best AI native DevSecOps platform," highlighting the importance of AI tools in driving productivity.

Competitive Industry Position

GitLab has established itself as a leader in the DevOps platform market, as recognized by Gartner’s Magic Quadrant. The company was positioned highest in both "Ability (OTC:ABILF) to Execute" and "Completeness of Vision" among competitors including Microsoft (NASDAQ:MSFT), Atlassian (NASDAQ:TEAM), JFrog, and Harness:

The company estimates its total addressable market at $40 billion, with significant growth potential as DevOps platform adoption is expected to increase from 25% of organizations in 2023 to 75% by 2027. This market expansion represents a substantial opportunity for GitLab to continue its growth trajectory.

GitLab’s customer base includes over 50 million registered users, with more than 50% of Fortune 100 companies among its customers. The presentation highlighted customer success stories, including Intuitive Machines, which achieved a 10x increase in release cadence and 99% reduction in downtime, and bol., which saved thousands of developer hours by automating compliance and shifting security left.

Forward-Looking Statements

GitLab provided guidance for both Q2 FY26 and the full fiscal year, projecting continued growth and improving profitability:

For Q2 FY26, GitLab expects revenue between $226 million and $227 million, representing approximately 24% year-over-year growth. For the full fiscal year 2026, the company projects revenue between $936 million and $942 million.

The company’s non-GAAP operating income is expected to be between $23 million and $24 million for Q2, and between $117 million and $121 million for the full year. Non-GAAP net income per share is projected at $0.16-$0.17 for Q2 and $0.74-$0.75 for the full year.

GitLab’s forward-looking statements reflect confidence in its ability to maintain strong growth while continuing to improve profitability. The company plans to focus on expanding its customer base and enhancing its product offerings, particularly in AI capabilities and platform enhancements, to maintain its leadership in the DevSecOps market.

As GitLab continues to execute on its strategy of providing an integrated, AI-native DevSecOps platform, it remains well-positioned to capitalize on the growing market opportunity and deliver value to both customers and shareholders.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.