GitLab (GTLB) Stock Forecast & Price Target

GitLab Inc. has experienced significant growth, with weekly active usage of GitLab Duo increasing nearly sixfold this year and higher adoption rates for its Ultimate tier, which now accounts for 54% of total Annual Recurring Revenue (ARR). The company has raised its fiscal year 2026 revenue guidance to $946–$947 million, representing a 25% year-over-year growth, reflecting optimism about customer additions and the potential for further up-tiering of existing accounts. Despite competitive pressures from Microsoft GitHub, GitLab's unique all-in-one platform approach is expected to enhance its market position, potentially leading to above-forecast growth and improved investor sentiment.

The analysis of GitLab Inc. reveals a negative outlook driven by several fundamental factors, including challenges in customer acquisition and slower sales productivity against a backdrop of market weakness. The company reported a non-GAAP operating margin of 17.2%, exceeding guidance, yet its non-GAAP gross margin of 88.6% fell short of the street's expectations, indicating potential issues with cost management or pricing strategies. Additionally, the significant decline in net new customers generating more than $5K in annual recurring revenue—down to 137 from 234 in the previous quarter—highlights ongoing difficulties in growth, compounded by headwinds from recent market dynamics and operational execution challenges.