Gitlab (US:GTLB) ZACKS·2025-12-02 23:21Core Insights - GitLab Inc. reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing an increase from $0.23 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company achieved revenues of $244.35 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.41% and reflecting a year-over-year increase from $196.05 million [2] - GitLab has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of GitLab's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $251.67 million, and for the current fiscal year, it is $0.83 on revenues of $940.15 million [7] Industry Context - The Internet - Software industry, to which GitLab belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Stock Performance - GitLab shares have underperformed the market, losing about 27% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The estimate revisions trend for GitLab was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperformance in the near future [6]