GitLab Shares Plunge After Weak Fiscal 2027 Outlook
GitLab Inc. (GTLB) shares tumbled nearly 8% in premarket trading after issuing disappointing guidance for fiscal 2027. The software company projected adjusted earnings of 76-80 cents per share, significantly below the $1.05 analysts anticipated. Revenue forecasts of $1.10-$1.12 billion also fell short of Wall Street's $1.12 billion expectation.
While Q4 results showed strength with revenue climbing 23% to $260.4 million, beating estimates, investors focused on the deteriorating growth trajectory. The 2027 revenue guidance implies just 17% growth, down from 26% in the previous year. At least five brokerages swiftly cut price targets following the report.
The stock has now lost 57% of its value over the past twelve months. Market participants appear particularly concerned about the company's inability to monetize its Duo Agent Platform, which management said won't contribute meaningfully to revenue this year.
