GitLab Stock Tumbles 5% After Weak Earnings Guidance Misses Analyst Estimates

Key Stats for GitLab Stock

• Pre-market price change for GitLab stock: -5%
• $GTLB Share Price as of Jun. 2: $32
• 52-Week High: $52
• $GTLB Stock Price Target: $30

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

GitLab (GTLB) stock dropped sharply after the company reported Q1 fiscal 2027 earnings on June 2.

• Revenue came in at $264 million, up 23% year-over-year, beating guidance.
• But investors sold off the stock because the forward guidance disappointed.

For Q2,

• GitLab expects revenue of $272–$274 million, representing just 15–16% growth.
• That’s a noticeable slowdown from the 23% growth just reported.
• Full-year guidance was raised slightly, but the modest bump wasn’t enough to satisfy the market.

GitLab also announced “Act 2,” a major restructuring plan.

• The company is cutting roughly 14% of its workforce and exiting 22 countries.
• It expects to incur $30–$35 million in restructuring charges, with most hitting in Q2.

See analysts’ growth forecasts and price targets for GitLab stock (It’s free) >>>

What the Market Is Telling Us About GitLab Stock

GitLab stock fell because the guidance implied a meaningful deceleration in growth heading into the back half of the year.

While management cited macro headwinds, layoffs at customer companies, and near-term disruption from the restructuring as reasons for caution, investors weren’t willing to give the benefit of the doubt.

There were genuine bright spots.

• GitLab’s new Duo Agent Platform contributed more net new ARR in its first quarter than Duo Pro and Enterprise had ever done in any prior quarter.
• The company also reported strong enterprise momentum, with customers paying over $100,000 annually, growing 18% year-over-year.

Still, GitLab stock remains about 27% below its 52-week high.

Investors appear focused on slowing top-line growth and execution risk tied to the restructuring. Until GitLab stock shows that Act 2 is translating into re-accelerating growth, sentiment is likely to stay cautious.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does GitLab Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

1. Revenue Growth
2. Operating Margins
3. Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!