Investor sentiment around tech stocks remains volatile as companies navigate changing market dynamics and investor expectations. Amid this backdrop, Gitlab Inc.‘s (NASDAQ:GTLB) recent financial performance and strategic adjustments highlight the challenges and opportunities facing tech firms today.
Shares of Gitlab fell in early trading on Thursday, even after the company reported upbeat second-quarter results.
Here are some analyst takeaways.
- Canaccord Genuity analyst Kingsley Crane maintained a Buy rating, while reducing the price target from $76 to $70.
- BTIG analyst Gray Powell reaffirmed a Buy rating, while cutting the price target from $67 to $57.
- Rosenblatt Securities analyst Blair Abernethy reiterated a Buy rating and price target of $58.
Check out other analyst stock ratings.
Canaccord Genuity: GitLab reported "solid" quarterly results and its strongest monthly bookings in two years, Crane said in a note. The stock came under pressure due to GitLab's evolving GTM model and uncertainty around the financial outlook after CFO Brian Robins steps down, the analyst added.
Total revenue of $236 million came in higher than consensus by around $9.5 million and represented an accelerated in growth to 29% year-on-year, Crane stated. "The company’s ability to continue to power revenue growth from seat expansions in this software buying environment is clear evidence, in our view, that the platform value proposition is still resonating with customers," he further wrote.
BTIG: Gitlab reported strong results, which significantly exceeded Street expectations, Powell said. The company's total revenue, operating income and free cash flows came in "substantially" higher than consensus estimates, he added.
Despite Gitlab generating total revenue around 4% higher than expected, management left their full-year revenue guidance unchanged, which effectively reduces the outlook for the second half of fiscal 2026 by $9.5 million or 1.9%, the analyst stated. "The primary reason for the conservative outlook is changes to the company's GTM structure in 2H'F26," he further wrote.
Rosenblatt Securities: Gitlab reported 29% year-on-year revenue growth, mainly driven by subscription revenue growth of 30%, Abernethy said. Management guided to fiscal third-quarter revenue of $238 million-$239 million, missing consensus of $241.1 million, he added.
The company maintained its revenue guidance for fiscal 2026 at $936-$942 million, which implies only 18% year-on-year revenue growth in the fourth quarter, the analyst stated. "GitLab also announced that CFO Brian Robins is leaving, effective September 19th, after nearly 5 years with the company, including taking the company public in 2021," he further wrote.
GTLB Price Action: GitLab shares were down 8.51% at $42.92 at the time of publication on Thursday. The stock is trading near its 52-week low of $37.89, according to Benzinga Pro data.
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