Wall Street analysts updated their views on GitLab Inc. (NASDAQ: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 Benzinga Pro data.

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