GitLab (GTLB) Stock Forecast & Price Target

GitLab Inc. demonstrated strong financial performance, achieving total revenue of $260.4 million, which represents a 23% year-over-year increase, surpassing expectations. In the fourth quarter of FY26, subscription revenue, which constitutes 90% of total revenue, grew by 26% year-over-year to $234.3 million, further illustrating the company's robust growth trajectory. Additionally, GitLab improved its operating margins to 20.2%, up from 17.7% in the previous year, indicating enhanced profitability as the company continues to expand its customer base and scale its sales initiatives.

GitLab's FY26 revenue guidance of $1,108.5 million, representing an approximate 16% year-over-year growth, fell short of consensus expectations by about $12 million, indicating potential challenges in meeting market expectations. The company is also projecting a significant decline in operating margins, with FY26 Non-GAAP operating income guidance set at $133 million, or roughly 12%, which is approximately 500 basis points lower year-over-year. Furthermore, the decreasing net revenue retention rate, which has now marked eight consecutive quarters of decline, alongside weaker forecasts for future growth rates, suggests underlying pressures from mid-market and SMB segments, reinforcing a negative outlook for GitLab's stock.