Wall Street analysts updated their views on GitLab Inc. GitLab (GTLB) following the company's latest results, with Needham and BTIG staying bullish. At the same time, DA Davidson and Guggenheim remained neutral despite stronger-than-expected quarterly metrics and early traction for the Duo Agent Platform.

Needham Sees Strong AI Growth Ahead For GitLab

Needham analyst Mike Cikos maintained a Buy rating on GitLab and raised the price forecast from $32 to $38.

Cikos said GitLab only carried part of its quarterly outperformance into its fiscal 2027 outlook due to macro headwinds and potential near-term disruption from its Act 2 restructuring.

He said gross bookings growth accelerated to its highest level in four quarters, GitLab Dedicated topped $70 million in ARR, and Ultimate reached 57% of ARR.

Cikos also said Duo Agent Platform showed strong early adoption, with a paid consumption run rate near $20 million.

GitLab expects $30 million to $35 million in fiscal 2027 restructuring cash expenses, including $19 million in the second quarter, while cutting 14% of staff, or about 350 employees.

BTIG Says Duo Agent Platform Gains Momentum

BTIG analyst Nick Altmann maintained a Buy rating on GitLab and raised the price forecast from $30 to $36.

Altmann said GitLab delivered a solid quarter despite several moving parts.

He said revenue grew 23%, about 400 basis points above consensus, while GitLab modestly raised its fiscal 2027 growth outlook to about 16.7% at the midpoint.

Altmann said Duo Agent Platform is gaining momentum, with paid consumption run rate reaching about $20 million.

He said DAP contributed more net new ARR than Duo Pro and Duo Enterprise combined in any prior quarter.

Altmann also said the company's 14% workforce reduction clears part of the path forward, while fiscal 2027 operating margin guidance rose about 40 basis points to 12.4%.

Altmann said GitLab's agentic AI story remains the main swing factor for growth durability and a broader share rerating.

DA Davidson Cites Macro Risks Despite Beat

DA Davidson analyst Lucky Schreiner maintained a Neutral rating on GitLab and raised the price forecast from $24 to $35.

Schreiner said GitLab delivered an above-average revenue beat and showed early traction for Duo Agent Platform.

He said fiscal first-quarter revenue beat consensus by about $10 million as growth stabilized at 23%.

The company guided fiscal 2027 revenue to $1.115 billion at the midpoint, implying about 17% growth.

Schreiner said SaaS outperformance and early DAP adoption helped the quarter, but macro pressure, price-sensitive customers representing 20% of ARR, and customer headcount reductions still limit near-term upside.

He said fiscal 2027 adjusted operating income guidance rose by $5 million to $138 million, while second-quarter revenue guidance of $273 million matched consensus and implied 16% year-over-year growth.

Guggenheim Questions Long-Term AI Impact

Guggenheim analyst Howard Ma reiterated a Neutral rating on GitLab after the company delivered stable first-quarter revenue growth and raised its full-year outlook.

Ma said GitLab's first-quarter revenue rose 23% year over year to $264 million, topping consensus, while adjusted operating income reached $38 million, or a 14% margin.

He said Duo Agent Platform showed early promise, with an annualized consumption run rate of $20 million, but added that it remains unclear how material the product can become.

Ma also flagged continued pressure from price-sensitive customers, tech layoffs, M&A-related churn, and weaker net adds among customers with ARR of more than $5,000.

Ma said GitLab could modestly beat guidance, projecting fiscal 2027 revenue of $1.134 billion, up 19%, and an operating margin of about 15% versus the company's 12.4% guidance.

GitLab Price Action

GTLB Price Action: GitLab shares were down 2.14% at $31.14 at the time of publication on Wednesday, according to market data.