Update shared on19 Sep 2025
Fair value Decreased 5.12%Analysts have trimmed GitLab's price target to $58.64, citing softer SMB revenue, one-time headwinds, cautious management guidance amid leadership transition, and ongoing questions about growth durability, despite constructive AI prospects and strong recent results.
Analyst Commentary
- Cautious revenue outlook driven by SMB weakness, one-time impacts to self-managed revenue, and conservative go-to-market adjustments.
- Stable core business performance with recent quarters beating expectations, though upside partly attributed to timing and not reflected in updated guidance.
- Persistent questions about growth durability and medium-term outlook, with management reiterating guidance despite solid results.
- AI integration and complexity of modern cloud seen as positive long-term growth drivers, but near-term AI and pricing dynamics warrant a wait-and-see approach.
- Leadership transition with CFO departure introduces additional uncertainty, and sentiment among analysts remains mixed to cautious despite constructive Q2 checks.
What's in the News
- GitLab provided Q3 revenue guidance of $238–$239 million and FY2026 guidance of $936–$942 million.
- CFO Brian Robins will step down; James Shen to be named interim CFO, with Simon Mundy promoted to Chief Accounting Officer.
- GitLab joined a federal project with major tech firms to develop integrated, real-world solutions for secure software development and operations.
- Signed a three-year strategic collaboration with AWS to expand GitLab Dedicated for highly regulated industries, offering unified development and security toolchains.
- Launched public beta of GitLab Duo Agent Platform, introducing advanced AI-powered DevSecOps orchestration and collaborative features for developers, with wider support and general availability targeted by year-end.
Valuation Changes
Summary of Valuation Changes for GitLab
- The Consensus Analyst Price Target has fallen from $61.81 to $58.64.
- The Consensus Revenue Growth forecasts for GitLab has fallen from 21.6% per annum to 19.8% per annum.
- The Net Profit Margin for GitLab has fallen from 13.09% to 12.43%.
Disclaimer
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