William Blair Has Pessimistic Outlook of GitLab Q2 Earnings

GitLab Inc. (NASDAQ:GTLB - Free Report) - Analysts at William Blair reduced their Q2 2026 EPS estimates for GitLab in a research note issued to investors on Wednesday, June 11th. William Blair analyst J. Ader now anticipates that the company will post earnings per share of ($0.10) for the quarter, down from their previous forecast of ($0.07). The consensus estimate for GitLab's current full-year earnings is ($0.31) per share. William Blair also issued estimates for GitLab's Q3 2026 earnings at ($0.06) EPS, Q4 2026 earnings at ($0.06) EPS, FY2026 earnings at ($0.30) EPS and FY2027 earnings at ($0.25) EPS.

GitLab (NASDAQ:GTLB - Get Free Report) last issued its earnings results on Tuesday, June 10th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.15 by $0.02. GitLab had a negative return on equity of 4.07% and a net margin of 2.17%. The business had revenue of $214.51 million for the quarter, compared to the consensus estimate of $213.21 million. During the same period last year, the business posted $0.03 EPS. The company's revenue was up 26.8% compared to the same quarter last year.

Other analysts have also issued reports about the stock. JPMorgan Chase & Co. reduced their price target on shares of GitLab from $58.00 to $52.00 and set a "neutral" rating for the company in a research note on Wednesday, June 11th. Wells Fargo & Company dropped their target price on shares of GitLab from $65.00 to $60.00 and set an "overweight" rating on the stock in a report on Wednesday, June 11th. Barclays cut their target price on shares of GitLab from $58.00 to $47.00 and set an "equal weight" rating for the company in a research report on Wednesday, June 11th. Mizuho lowered their price target on GitLab from $72.00 to $60.00 and set an "outperform" rating on the stock in a report on Wednesday, June 11th. Finally, Canaccord Genuity Group cut their price objective on GitLab from $78.00 to $76.00 and set a "buy" rating for the company in a report on Thursday, June 12th. Four research analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, GitLab presently has a consensus rating of "Moderate Buy" and an average price target of $63.59.

GitLab Price Performance

NASDAQ GTLB traded up $0.17 during trading hours on Monday, hitting $42.04. The company's stock had a trading volume of 3,875,683 shares, compared to its average volume of 2,781,081. GitLab has a 12 month low of $37.90 and a 12 month high of $74.18. The company's 50 day simple moving average is $46.31 and its two-hundred day simple moving average is $54.95. The company has a market cap of $6.89 billion, a P/E ratio of 420.40 and a beta of 0.75.

Insiders Place Their Bets

In other news, Director Sytse Sijbrandij sold 108,600 shares of the stock in a transaction on Monday, June 16th. The shares were sold at an average price of $41.44, for a total value of $4,500,384.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Brian G. Robins sold 45,000 shares of GitLab stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $53.04, for a total transaction of $2,386,800.00. Following the transaction, the chief financial officer now owns 344,105 shares in the company, valued at approximately $18,251,329.20. This trade represents a 11.57% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 530,184 shares of company stock worth $25,617,758. Company insiders own 16.37% of the company's stock.

Hedge Funds Weigh In On GitLab

Hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC raised its stake in GitLab by 5,700.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 522 shares of the company's stock valued at $29,000 after purchasing an additional 513 shares during the period. Cullen Frost Bankers Inc. grew its holdings in GitLab by 174.9% during the 1st quarter. Cullen Frost Bankers Inc. now owns 525 shares of the company's stock valued at $25,000 after buying an additional 334 shares in the last quarter. CoreCap Advisors LLC raised its position in shares of GitLab by 327.5% during the fourth quarter. CoreCap Advisors LLC now owns 590 shares of the company's stock valued at $33,000 after buying an additional 452 shares during the last quarter. Twin Tree Management LP bought a new stake in shares of GitLab during the first quarter valued at approximately $29,000. Finally, Cloud Capital Management LLC purchased a new position in shares of GitLab in the first quarter worth $29,000. Institutional investors own 95.04% of the company's stock.

About GitLab

GitLab Inc, through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle.