GitLab (NASDAQ:GTLB) slipped in premarket trading Thursday following the company’s release of conservative guidance and the announcement that CFO Brian Robins will step down on September 19. James Shen, the company’s Vice President of Finance, is expected to take over as interim CFO.
Shares of GitLab were down around 8% in early trading.
For the quarter ending July 31, the company posted adjusted EPS of $0.24 on revenue of $236.0 million, exceeding consensus estimates of $0.16 per share on revenue of $227.2 million.
Looking ahead to Q3, GitLab expects adjusted diluted EPS in the range of $0.19 to $0.20 on revenue of $238 million to $239 million, compared with analysts’ estimates of $0.19 per share on $241.5 million in revenue.
For the full fiscal year 2026, the company now anticipates adjusted EPS of $0.82 to $0.83, up from a prior forecast of $0.74 to $0.75, exceeding the $0.75 consensus. Net revenue guidance was maintained at $936 million to $942 million, slightly below the $942.9 million analysts’ estimate.
Bank of America analysts said: “The debate will likely fall squarely on its FY26 revenue guidance which was only reiterated. This is raising questions if it’s just being conservative, or if something more ominous is happening with demand.” They added, “We believe it’s just conservatism.” The bank views the share price dip “as a particularly attractive opportunity.”
Barclays analysts shared a similar perspective, noting that the “CFO departure and a conservative top-line guide raise questions about 2H growth algorithm.”
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