GitLab delivered a stronger-than-expected quarterly performance as enterprises continue investing in software development platforms, cloud infrastructure, and artificial intelligence-powered productivity tools. The company’s results reflect the growing demand for integrated DevSecOps solutions that help organizations manage increasingly complex software development cycles.

For the second quarter, GitLab reported $286.3 million in revenue, above analyst expectations of $273 million and representing 21% year-over-year growth. Adjusted earnings per share reached $0.24, exceeding estimates of $0.18, while the company maintained strong profitability with a non-GAAP gross margin of 86%.

Subscription Growth Supports GitLab’s Enterprise Expansion

GitLab’s subscription business remained the core contributor to revenue growth, generating $258.3 million during the quarter. The company’s license revenue totaled $27.9 million, while overall demand was supported by continued adoption among organizations seeking unified platforms for software development, security, and operational management.

The company reported a dollar-based net retention rate of 117%, indicating that existing customers continued increasing their spending on GitLab’s platform. This metric highlights stronger customer engagement as businesses expand usage across development teams and enterprise operations.

GitLab also reported $1.2 billion in remaining performance obligations (RPO), increasing 16% year over year. The growth in contracted future revenue provides additional visibility into customer commitments and reflects continued confidence from enterprise users.

Artificial Intelligence Becomes a Strategic Growth Opportunity

The software development industry is undergoing significant transformation as artificial intelligence tools become integrated into engineering workflows. GitLab has positioned its platform around this shift by introducing new AI-related capabilities designed to improve developer productivity, security automation, and software delivery processes.

The company launched GitLab Secrets Manager and introduced the GitLab Flex commercial model as part of its broader strategy to expand platform capabilities and provide customers with more flexible deployment options.

As organizations increase their investment in AI-powered development environments, platforms that combine coding, security, and operational tools are becoming increasingly important. GitLab’s focus on integrated workflows places the company within a competitive market that includes major cloud providers and enterprise software companies.

Higher Guidance Reflects Improving Financial Performance

Following the quarterly results, GitLab raised its fiscal 2027 outlook, projecting revenue between $1.129 billion and $1.133 billion, compared with analyst expectations of $1.12 billion. The company also increased its forecast for non-GAAP operating income to between $148 million and $152 million.

For the upcoming quarter, GitLab expects revenue between $281 million and $283 million, with non-GAAP operating income projected between $35 million and $37 million. The company’s ability to expand margins while maintaining growth remains a central focus as enterprise software markets become increasingly competitive.

GitLab generated $9.8 million in adjusted free cash flow during the quarter, while customer growth continued with 1,571 customers generating more than $100,000 in annual recurring revenue, an increase of 17% year over year.

Going forward, market participants will monitor GitLab’s ability to sustain enterprise expansion, accelerate AI-related product adoption, and maintain profitability in a competitive software environment. The company’s future performance will depend on continued demand for DevSecOps platforms, customer retention trends, and the broader pace of enterprise digital transformation.