GitLab (GTLB) Revenue Growth And Contained Losses Test Bullish Profitability Narratives

GitLab's FY 2026 results set the stage for a margins story

GitLab (GTLB) closed FY 2026 with fourth quarter revenue of US$260.4 million and a basic EPS loss of US$0.02 per share, alongside trailing twelve month revenue of US$955.2 million and a TTM EPS loss of US$0.34. The company has seen quarterly revenue move from US$196.0 million in Q3 FY 2025 to US$260.4 million in Q4 FY 2026, while quarterly EPS has shifted from a profit of US$0.18 to a loss of US$0.02 over the same stretch, leaving investors focused on how that revenue base can eventually support stronger margins.

With the latest earnings on the table, the next step is to see how these margins and growth trends line up against the widely followed narratives around GitLab's path to scale and profitability.

See what the community is saying about GitLab

Revenue climbs while losses stay contained

• Across FY 2026, GitLab's quarterly revenue moved from US$214.5 million in Q1 to US$260.4 million in Q4, while net loss in the same period narrowed from US$35.9 million to US$2.6 million.
• Supporters of the bullish narrative point to this combination of higher revenue and smaller quarterly losses as a platform for future scale. However, the trailing twelve month numbers still show a loss of US$56.0 million and a TTM EPS loss of US$0.34, which sits against bullish assumptions of faster AI driven adoption and larger enterprise deals that are not yet visible in reported earnings.

Unprofitable today with earnings expected to decline

• GitLab remains unprofitable on a trailing twelve month basis, and earnings are forecast to decline by an average of 7.6% per year over the next three years while profitability is not expected in that period.
• Critics in the bearish camp argue that rising AI and R&D spending plus intense competition could keep pressure on margins. The forecasts of a 7.6% annual earnings decline and continued losses align with that concern, even as historical data shows losses reducing at about 14.7% per year over the past five years, which suggests the path to durable profitability is still uncertain given those higher ongoing investment needs.

Mixed valuation signals around growth and losses

• At a share price of US$22.63, GitLab trades on a P/S of 4x compared with 3.5x for the broader US software industry and 5.2x for its peer group, while a cited DCF fair value of US$53.97 sits well above the current price.
• Consensus narrative points out that revenue is forecast to grow around 12.5% per year, faster than the 10.5% US market benchmark. However, the expectation of ongoing losses and a 7.6% annual earnings decline creates a tension between growth supported by AI driven features and partnerships and a business model that has not yet converted that growth into positive EPS, which helps explain why valuation metrics send a mixed message.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for GitLab on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With bulls focused on revenue traction and bears focused on ongoing losses, sentiment around GitLab is clearly split. Use the data to pressure test both sides and decide where you stand based on the 2 key rewards and 2 important warning signs.

See What Else Is Out There

GitLab still carries ongoing losses, with forecasts pointing to further earnings declines and no expected profitability over the next three years.

If that profit picture makes you cautious, it is worth checking companies that combine healthier earnings profiles with attractive pricing by using the 49 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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