On September 2, GitLab, Inc. surged 18.32% in pre-market trading, trading at approximately $53.03 per share, following the release of its FY2027 second-quarter earnings that comprehensively exceeded Wall Street expectations.

GitLab reported Q2 revenue of $286.3 million, up 21.3% year-over-year and surpassing the consensus estimate of $273.1 million by approximately $13 million. Adjusted EPS came in at $0.24, beating the $0.18 estimate by 33.33%. Net ARR growth exceeded 40%, while total bookings reached a record high. Non-GAAP operating margin stood at 15% of sales.

The company also raised its full-year outlook. For FY2027, GitLab now expects revenue of $1.129 billion to $1.133 billion, above the prior Street estimate of $1.115 billion, and adjusted EPS of $0.85 to $0.87, versus the $0.81 consensus. Q3 guidance of $281-283 million in revenue and $0.19-0.20 in adjusted EPS similarly topped expectations. The strong results were underpinned by its AI-driven Duo Agent Platform, which third-party research indicates delivers a 400% ROI for customers over three years.

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