GitLab (NASDAQ:GTLB) reported fourth quarter fiscal 2026 earnings that exceeded Wall Street expectations, but the company’s shares dropped about 7% in early trading on its cautious guidance for the upcoming year.
For the quarter ended January 31, 2026, GitLab posted adjusted earnings per share of $0.30, surpassing the consensus of $0.23.
Revenue came in at $260.4 million, above the $252 million estimate, representing a 23% increase year-over-year.
The company reported a GAAP operating margin of -2% and a non-GAAP operating margin of 21% for the quarter. Operating cash flow totaled $45.8 million, while non-GAAP adjusted free cash flow reached $41.8 million.
For the full fiscal year, GitLab’s revenue rose 26% to $955.2 million, with a GAAP operating margin of -7% and non-GAAP operating margin of 17%. Operating cash flow for the year was $232.9 million, and non-GAAP adjusted free cash flow was $219.6 million.
Despite the strong results, GitLab’s guidance for fiscal 2027 fell short of analyst expectations. The company forecasted EPS of $0.76 to $0.80, below the consensus estimate of $1.03, while revenue guidance of $1.10 billion to $1.12 billion modestly exceeded the $1 billion estimate.
“Fiscal year 2026 saw GitLab cross $1 billion in ARR and deliver $220 million of free cash flow,” the company’s chief financial offier Jessica Ross said.
“We are building new multi-year growth drivers with GitLab Duo Agent Platform and hybrid pricing. Our new $400 million share repurchase authorization reflects confidence in the business and our commitment to delivering shareholder value.”