GitLab in a nosedive: Missed expectations weigh on the stock

The stock price of the software development platform provider GitLab experienced a sharp decline on Wednesday, following the company's disappointing quarterly figures released the previous day. The San Francisco-based company reported adjusted earnings per share of $0.17 for the first quarter of fiscal year 2026, with a revenue increase of 27% to $214.5 million compared to the same period last year. However, analysts had expected slightly different figures: $0.15 earnings per share and revenue of $213 million. Despite this positive surprise in revenue, GitLab disappointed with an unexpectedly large GAAP loss of $35.9 million or $0.22 per share. Experts had forecasted a loss of only $23 million or $0.14 per share. For the second quarter, GitLab anticipates revenues between $226 and $227 million, and for the entire fiscal year, between $936 and $942 million. Although the expected midpoints of these ranges are slightly above consensus estimates, they nevertheless seem to have failed to convince some investors. In current trading, GitLab shares fell by 10%, marking a decline of around 22% for the year to date.