GitLab Shares Drop After FY27 Outlook Misses Wall Street Targets

Executives said the Duo Agent AI platform is unlikely to contribute meaningful revenue this fiscal year.

Overview

The company guided fiscal 2027 revenue to $1.10–$1.12 billion and adjusted EPS to $0.76–$0.80, below the Street’s $1.12 billion and $1.05.
Shares fell about 7–8% in premarket trading, extending a roughly 57% decline over the past 12 months.
Fourth-quarter results topped estimates with adjusted earnings of $0.30 per share and revenue of $260.4 million, up 23% year over year.
At least five brokerages lowered price targets following the update as investors questioned the near-term payoff from GitLab’s AI strategy.
Analyst views split, with TD Cowen highlighting competitive risks in an evolving “AI 2.0” market and William Blair’s Jackson Ader maintaining an Outperform rating.