Gitlab maintained its full-year revenue guidance of $936 million to $942 million, compared to the consensus estimate of $941.69 million.

GitLab, Inc. (GTLB) shares tumbled 12.6% in Tuesday’s extended session after the software development platform provider issued slightly disappointing revenue guidance for the current quarter and the fiscal year 2026.

For the second quarter of the fiscal year 2026, the San Francisco-based company expects adjusted earnings per share (EPS) and revenue of $0.16-$0.17 and $226 million-$227 million, respectively, versus the Finchat-compiled consensus estimates of $0.16 and $227.05 million.

Gitlab maintained its full-year revenue guidance at $936 million to $942 million, compared to the $941.69-million consensus estimate. However, it upped its EPS guidance to $0.74-$0.75 from $0.68-$0.72, comparing favorably to the mean analysts’ estimate of $0.73.

The first quarter's EPS and revenue were $0.17 and $214.5 million, respectively, exceeding the consensus of $0.15 and $213.21 million.

The year-over-year (YoY) revenue growth slowed from 29% to 27% in the previous quarter. Total remaining performance obligations (RPO) remained robust at $955.1 million, up 40% YoY, and the current RPO rose 34% to $584.8 million. The dollar-based net retention rate was 122%.

GitLab attributed the strong quarterly performance to its artificial intelligence (AI)-native DevSecOps platform.

While CEO Bill Staples lauded the company’s unified platform, CFO Brain Robins said, “I am pleased with our team’s execution, which resulted in 27% revenue growth in the first quarter, significant year-over-year operating margin expansion, and record adjusted free cash flow.”

Stockwits users held an optimistic view, with the sentiment meter showing an ‘extremely bullish’ mood toward the stock by late Tuesday.  

GTLB sentiment and message volume as of 12:30 a.m. ET, June 11 | source: Stocktwits

The stock was among the top 10 trending tickers on the platform by early Wednesday.

A bullish user expected Gitlab to wipe away the after-hours losses and break above $50, supported by analysts’ upgrades.

Another user said they held onto the stock because they did not consider the earnings report “horrible.”

If the after-hours losses are sustained in Wednesday’s session, GitLab stock will have the worst session in about a year. The message volume was also ‘extremely high.’

The stock is down about 14% year-to-date. 

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