GitLab Shares Surge Up to 23% After Q2 Revenue Beat and Record Bookings

GitLab reported fiscal second-quarter 2027 revenue of $286.3 million, up 21% year-over-year and well above the $273 million analysts had expected, driving shares up more than 20% in Wednesday trading. The DevSecOps platform credited AI-driven consumption demand and record bookings, with its Flex pricing model gaining momentum as the company pushes further into AI-assisted development workflows.

Despite the strong beat, several analysts urged caution. GitLab's third-quarter guidance implies revenue growth of only about 15% year-over-year, extending a clear deceleration trend. Key metrics including net ARR and First Orders showed improvement, but adjusted net income barely moved and overall business growth remains in the upper teens rather than signaling a reacceleration.

The stock's post-earnings jump adds to a run that has already taken shares up roughly 46% over the prior three months and more than doubled from AI-related lows earlier in the year. Barron's and Seeking Alpha both flagged the valuation as stretched at current levels, with one analyst describing the situation as closer to selling the rally than chasing it. GitLab also received analyst upgrades on September 2 alongside the earnings reaction.