GitLab Inc. (GTLB) reported a 10% year-over-year increase in customers with over $5,000 in Annual Recurring Revenue (ARR), reaching 10,475 in Q3 of fiscal 2026. Customers generating more than $100,000 in ARR surged by 23% to 1,405, highlighting the company’s capability to onboard and retain large enterprise clients. The firm anticipates fiscal 2026 revenues at $946.45 million, projecting 24.66% growth compared to the previous year.
Despite these growth metrics, GitLab is facing stiff competition, especially from Microsoft’s GitHub and Atlassian’s suite of tools. The company’s shares have decreased by 41.7% over the past six months, underperforming the broader Zacks Computer & Technology sector, which returned 10.6% in the same period. GitLab has a forward Price/Sales ratio of 3.92, nearly on par with the industry average of 3.93.
GitLab’s strategic partnership with Amazon Web Services (AWS) aims to enhance secure DevSecOps capabilities, targeting regulated industries and the public sector. The firm currently holds a Zacks Rank of 4 (Sell).
