GitLab Inc (NASDAQ:GTLB) shares moved lower on Wednesday after the company released its third-quarter results and issued fourth-quarter sales guidance that came in slightly below analyst expectations. Additionally, Rosenblatt cut its price target on the stock to $55 from $58.
GTLB shares are near support zones. View the charts here.
What Happened: GitLab reported earnings of 25 cents per share, surpassing analyst estimates of 20 cents.
The quarter’s revenue was $244.4 million, which is better than the expected revenue of $239.63 million — a 24.64% increase compared to $196.0 million of the previous year.
“More code means more of a need for GitLab,” said Bill Staples, GitLab CEO. “Engagement is growing across our platform as we are a critical part of how our customers deliver high quality, secure software. We’ve architected GitLab and Duo Agent Platform to provide intelligent orchestration across the software lifecycle, facilitate trust and accuracy in an AI world, and help accelerate the end to end software delivery process required to win.”
Looking ahead, GitLab expects fourth-quarter adjusted earnings of 22 to 23 cents per share, compared with analyst estimates of 22 cents. Revenue is expected to be in the range of $251.0 million to $252.0 million, below the consensus forecast of $252.65 million by a small margin.
For the fiscal year 2026, GitLab increased its adjusted earnings guidance to 95 to 96 cents per share, which is higher than the previous range of 82 to 83 cents and significantly over the analysts' expectation of 83 cents.
The company raised its revenue forecast to $946.0 million to $947.0 million, in contrast to the prior guidance range of $936.0 million to $942.0 million, and above the consensus estimate of $941.12 million.
GTLB Analyst Ratings
Analysts have demonstrated mixed opinions on GitLab’s recent performance. Following its earnings results, Goldman Sachs maintained a neutral rating and reduced the target price to $42 from $48 on Dec. 3. On the same day, Cantor Fitzgerald reiterated an overweight rating and set a target price of $60, while JP Morgan also kept a neutral stance with a slight increase in the target price to $53 from $52.
The other two key recent actions occurred also on Dec. 3, with Keybanc maintaining an overweight rating but reducing the target price to $49 from $53. UBS, on the other hand, maintained a buy rating but lowered the target price to $51 from the prior $60. This suggests a cautious outlook from these institutions despite some positive evaluations.
GTLB Price Action: GitLab shares were down 13.6% at $37.49 at the time of publication on Wednesday. The stock is trading near its 52-week low of $37.89, according to Benzinga Pro.
Read Next:
Image: Lori Butcher/Shutterstock
