SAN FRANCISCO, June 2, 2026, 14:11 PDT
GitLab shares climbed about 7% in late trading Tuesday, after the software-development platform reported stronger-than-expected sales and lifted its annual outlook. This comes as investors look to see if its AI strategy can drive demand or just shift it. The stock had closed regular hours down 5.8% at $31.82.
Investors want to know if AI coding tools can boost developer output and support demand for paid software. GitLab is now pitching its Duo Agent Platform, which gives developers access to AI agents for software tasks, as one solution. The company is under pressure to prove its case.
GitLab set out details on its planned restructuring. The company is cutting about 14% of workers, or 350 jobs, and will pull out of 22 countries. It expects to take $30 million to $35 million in pre-tax charges, mainly in fiscal 2027.
GitLab’s revenue jumped 23% to $264.2 million for the quarter ended April 30. Adjusted profit came in at 23 cents a share, which strips out some expenses. On a GAAP basis, the company reported a net loss of $5.0 million, better than the $35.9 million loss from the same period last year.
Chief Executive Bill Staples said the quarter had “accelerating platform activity” and momentum for GitLab Duo Agent Platform. CFO Jessica Ross cited “23% revenue growth” and a 2-point bump in operating margin. Business Wire
GitLab is looking for revenue between $272 million and $274 million this quarter, and sees adjusted EPS at 17 to 18 cents. For fiscal 2027, the company is guiding for $1.112 billion to $1.118 billion in revenue, with adjusted earnings of 79 to 82 cents a share.
GitLab’s revenue beat Wall Street by 3.9% and adjusted earnings landed 12.3% ahead of consensus, according to StockStory. But the report also pointed to weaker billings, with the non-GAAP figure at $249.9 million, and net revenue retention dropped to 117% from 118% last quarter.
GitLab reported customer numbers over $100,000 in annual recurring revenue rose 18% to 1,519. Remaining performance obligations climbed 18% to $1.1 billion. The company said customer expansion kept up.
GitLab detailed new AI security-remediation features, said more free-tier users now have access to Duo, and rolled out tighter integration with Anthropic’s Claude models. The company is working with Amazon Web Services and Google Cloud so enterprise clients can use GitLab’s AI tools on Amazon Bedrock or Google Vertex AI.
Competition is tough. GitLab’s annual report points to GitHub, run by Microsoft, as its top rival, and also lists Atlassian, JFrog and Harness as key developer software competitors. GitLab expects AI-aided coding to keep the pressure on.
But the rally leaves questions hanging. GitLab still has to prove that job cuts won’t hit sales or product, that billings will reflect revenue growth, and that demand for AI turns into steady sales. The company has warned that it faces risks from competition, pricing pressure, renewals, and the costs and risks of bringing on AI.
Investors liked the higher outlook. Now the focus shifts to whether Duo is more than a one-earnings-night trade.
