GitLab Inc. (GTLB) stock declined 8.9%. The company reported Q3 fiscal year 2026 results on December 2, 2025, showing total revenue of $244.4 million, up 25% year-over-year. GAAP operating margin was negative 5% while non-GAAP operating margin was 18%. The company reported GAAP net loss of $8.3 million for the quarter. GitLab issued corrected FY2026 guidance, lowering non-GAAP diluted net income guidance to $0.88-$0.89 from the previously stated $0.95-$0.96. Despite beating analyst expectations on earnings per share at $0.25 versus the $0.20 consensus estimate and exceeding revenue estimates, the stock experienced a negative market reaction. Insider selling activity was also reported, with insiders selling approximately 603,744 shares worth $22.5 million in the prior 90 days.
Read full analysisGitLab Inc. (GTLB) stock declined 8.9%. The company reported Q3 fiscal year 2026 results on December 2, 2025, showing total revenue of $244.4 million, up 25% year-over-year. GAAP operating margin was negative 5% while non-GAAP operating margin was 18%. The company reported GAAP net loss of $8.3 million for the quarter. GitLab issued corrected FY2026 guidance, lowering non-GAAP diluted net income guidance to $0.88-$0.89 from the previously stated $0.95-$0.96. Despite beating analyst expectations on earnings per share at $0.25 versus the $0.20 consensus estimate and exceeding revenue estimates, the stock experienced a negative market reaction. Insider selling activity was also reported, with insiders selling approximately 603,744 shares worth $22.5 million in the prior 90 days.
GitLab is a DevOps platform company that provides software development, security, and operations tools used by enterprises to build and deploy code, competing primarily with Microsoft's GitHub. Despite reporting 25% revenue growth to $244.4M and positive free cash flow, the company corrected its full-year EPS guidance lower and faces a wave of analyst downgrades citing AI strategy concerns alongside unresolved leadership transition uncertainty. With Q4 earnings due March 3, the stock trades at roughly half the consensus analyst price target of $49.58, reflecting a sharp disconnect between formal ratings and market sentiment.