"GitLab posted a genuinely solid Q4. Revenue came in at $260.40M, a +23.2% year-over-year gain that beat estimates by roughly $8M. Non-GAAP EPS of $0.30 crushed the $0.23 consensus by 30%. The company crossed $1B in total ARR and posted 155 customers with over $1M in ARR, up 26% year-over-year."
"The company guided FY27 non-GAAP EPS to $0.76-$0.80 - a meaningful step down from the $0.96 in non-GAAP EPS GitLab actually delivered in FY26. Revenue growth is also decelerating, with FY27 revenue guidance of $1.099B-$1.118B implying a growth rate that multiple analysts noted came in below the consensus expectation of roughly 15-17%."
"That EPS regression is the core issue. When a growth company guides earnings lower in absolute terms, analysts reprice risk immediately. The breadth of the cuts tells the story. This was not one or two firms trimming conservatively. It was a coordinated re-rating across bulls and bears alike."
GitLab delivered solid Q4 results with $260.40M revenue (+23.2% YoY), beating estimates by $8M, and non-GAAP EPS of $0.30 crushing consensus by 30%. The company achieved $1B in total ARR with 155 customers exceeding $1M in ARR, up 26% YoY. However, FY27 guidance caused a broad market re-rating. The company guided FY27 non-GAAP EPS to $0.76-$0.80, representing a decline from FY26's $0.96. Revenue growth is decelerating, with FY27 guidance of $1.099B-$1.118B implying growth below the 15-17% consensus expectation. This earnings regression triggered coordinated price target cuts from nine analysts, including major firms like JPMorgan, Piper Sandler, and Wells Fargo, with cuts ranging from $25 to $58.
Read at 24/7 Wall St.
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