GitLab Stock Rises as the Software Company Raises Guidance on AI Business Momentum

June 2, 2026 - 19:43

GitLab shares climbed in extended trading after the software development platform company reported fiscal first-quarter results that topped analyst expectations and lifted its full-year outlook, citing growing momentum in its artificial intelligence business.

The company posted adjusted earnings per share of $0.12 on revenue of $169.2 million, surpassing consensus estimates that called for a smaller profit and lower revenue. GitLab also raised its full-fiscal year revenue forecast to a range of $733 million to $737 million, up from its prior projection of $725 million to $731 million.

Executives pointed to increased adoption of GitLab's AI-powered features, including its Duo suite of coding assistants, as a key driver of the stronger performance. Customers are expanding their use of the platform's DevSecOps tools, which integrate development, security, and operations into a single workflow.

The upbeat report comes as enterprise software companies face heightened scrutiny over how quickly they can turn AI investments into tangible revenue. GitLab's results suggest that its focus on embedding AI directly into developer workflows is resonating with businesses looking to speed up software delivery while maintaining security.

For the current quarter, GitLab forecast revenue between $176 million and $177 million, above the average analyst estimate. The company also expects adjusted operating income to improve, signaling that its cost discipline is paying off alongside the top-line growth.

Shares rose more than 10 percent in after-hours trading following the announcement.