DevSecOps platform supplier GitLab (NASDAQ:GTLB) reported Q1 CY2026 outcomes exceeding the market’s income expectations, with gross sales up 23.1% yr on yr to $264.2 million. The corporate expects subsequent quarter’s income to be round $273 million, near analysts’ estimates. Its non-GAAP revenue of $0.23 per share was 12.3% above analysts’ consensus estimates.
Is now the time to purchase GitLab? Discover out in our full analysis report.
GitLab (GTLB) Q1 CY2026 Highlights:
- Income: $264.2 million vs analyst estimates of $254.2 million (23.1% year-on-year progress, 3.9% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.20 (12.3% beat)
- Adjusted Working Earnings: $37.53 million vs analyst estimates of $33.13 million (14.2% margin, 13.3% beat)
- The corporate barely lifted its income steering for the total yr to $1.12 billion on the midpoint from $1.11 billion
- Administration raised its full-year Adjusted EPS steering to $0.80 on the midpoint, a 3.2% enhance
- Working Margin: -6%, up from -16.1% in the identical quarter final yr
- Free Money Stream Margin: 55.6%, up from 16% within the earlier quarter
- Internet Income Retention Fee: 117%, down from 118% within the earlier quarter
- Billings: $249.9 million at quarter finish, up 12.5% yr on yr
- Market Capitalization: $5.71 billion
“The agentic period is creating structural tailwinds for GitLab, and Q1 confirmed it clearly with accelerating platform exercise and promising traction from GitLab Duo Agent Platform,” stated Invoice Staples, GitLab chief govt officer.
Firm Overview
With its all-remote workforce pioneering a brand new strategy to software program growth, GitLab (NASDAQ:GTLB) offers a single-application DevSecOps platform that helps growth, operations, and safety groups collaborate to construct, safe, and deploy software program sooner.
Income Development
Inspecting an organization’s long-term efficiency can present clues about its high quality. Any enterprise can put up quarter or two, however many enduring ones develop for years. Fortunately, GitLab’s 42.2% annualized income progress during the last 5 years was unimaginable. Its progress surpassed the common software program firm and reveals its choices resonate with clients, a terrific start line for our evaluation.
Lengthy-term progress is crucial, however inside software program, a half-decade historic view might miss new improvements or demand cycles. GitLab’s annualized income progress of 27.1% during the last two years is under its five-year pattern, however we nonetheless assume the outcomes counsel wholesome demand. 
This quarter, GitLab reported strong year-on-year income progress of 23.1%, and its $264.2 million of income topped Wall Avenue estimates by 3.9%. Firm administration is at present guiding for a 15.7% year-on-year enhance in gross sales subsequent quarter.
Wanting additional forward, sell-side analysts count on income to develop 14.6% over the following 12 months, a deceleration versus the final two years. This projection is underwhelming and signifies its services and products will face some demand challenges. A minimum of the corporate is monitoring effectively in different measures of monetary well being.
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Billings
Billings is a non-GAAP metric that’s typically referred to as “money income” as a result of it reveals how a lot cash the corporate has collected from clients in a sure interval. That is totally different from income, which should be acknowledged in items over the size of a contract.
GitLab’s billings punched in at $249.9 million in Q1, and during the last 4 quarters, its progress was stable because it averaged 17.4% year-on-year will increase. This alternate topline metric grew slower than complete gross sales, that means the corporate acknowledges income sooner than it collects money – a headwind for its liquidity that would additionally sign a slowdown in future income progress. 
Buyer Retention
The most effective elements concerning the software-as-a-service enterprise mannequin (and a motive why they commerce at excessive valuation multiples) is that clients sometimes spend extra on an organization’s services and products over time.
GitLab’s internet income retention charge, a key efficiency metric measuring how a lot cash current clients from a yr in the past are spending as we speak, was 117% in Q1. This implies GitLab would’ve grown its income by 17% even when it didn’t win any new clients during the last 12 months.
Regardless of falling during the last yr, GitLab nonetheless has internet retention charge, proving that clients are glad with its software program and getting extra worth from it over time, which is all the time nice to see.
Key Takeaways from GitLab’s Q1 Outcomes
It was nice to see GitLab’s full-year EPS steering high analysts’ expectations. We had been additionally glad its income outperformed Wall Avenue’s estimates. However, its EPS steering for subsequent quarter missed and its billings fell wanting Wall Avenue’s estimates. Total, this was a softer quarter. The inventory traded up 7.2% to $34.77 instantly after reporting.
Is GitLab a gorgeous funding alternative proper now? We predict that the most recent quarter is just one piece of the longer-term enterprise high quality puzzle. High quality, when mixed with valuation, can assist decide if the inventory is a purchase. We cowl that in our actionable full analysis report which you’ll be able to learn right here (it’s free).