Gitlab (US:GTLB) ZACKS·2025-09-03 22:16Core Insights - GitLab Inc. reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company achieved revenues of $235.96 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 4.14% and increasing from $182.58 million year-over-year [2] - GitLab has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $240.95 million, and for the current fiscal year, it is $0.75 on revenues of $939.54 million [7] - The trend of estimate revisions for GitLab was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which GitLab belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]