GitLab Inc. Stock Drops Despite Earnings Beat Amid CFO Exit and Cautious Guidance

GitLab Inc. (NASDAQ: GTLB) shares tumbled 9.8% to $42.33 following its Q2 earnings report, despite surpassing revenue and earnings expectations. The company posted $236 million in revenue, a 29% year-over-year increase, and adjusted EPS of $0.24, beating consensus estimates by 50%. However, investor sentiment soured due to conservative revenue guidance and the unexpected departure of CFO Brian Robins, who is set to join Snowflake.

While GitLab demonstrated strong operational metrics—including a 17% non-GAAP operating margin and $46 million in free cash flow—the market reacted to slowing customer acquisition trends. The company added 1,344 clients with annual recurring revenue above $100,000, representing 25% growth, but noted softness in SMB demand and competitive pressures.

The raised FY26 EPS outlook to $0.82–$0.83 failed to offset concerns about unchanged revenue projections. With $1.2 billion in cash reserves, GitLab remains financially robust, but leadership transitions and macroeconomic headwinds are weighing on near-term confidence.