GitLab Posts Record Bookings as Net ARR Growth Tops 40% in Q2 FY2027

GitLab reported second-quarter fiscal 2027 results on September 1, 2026, for the quarter ended July 31. Total revenue was $286.3 million, up 21% year-over-year. Non-GAAP operating margin was 15%, while GAAP operating margin was negative 20%.

Record Bookings and Retention Improvement

• Net ARR growth exceeded 40% year-over-year on record gross bookings for the quarter
• Dollar-based net retention rose sequentially to 117% — the first sequential increase in that metric since 2024
• Total remaining performance obligations reached $1.2 billion, up 16% year-over-year; current RPO was $744.7 million, up 20%
• Non-GAAP adjusted free cash flow was $9.8 million, while operating cash flow was negative $3.1 million

GitLab Flex Early Traction

More than 130 customers committed over $20 million in total to GitLab's newer Flex offering within its first six weeks of availability, helping push paid consumption run rate to more than $40 million — an early but notable signal of demand for the consumption-based product alongside GitLab's traditional subscription model.

Raised Guidance

GitLab raised full fiscal year 2027 revenue guidance to approximately $1.129-1.133 billion, and increased its non-GAAP operating income target to $148-152 million and non-GAAP diluted EPS target to $0.85-0.87.

What This Means for DevOps Platform Buyers

The sequential improvement in net retention — the first since 2024 — is arguably the more significant signal here than the headline revenue growth rate, since it suggests existing customers are expanding usage rather than just holding steady, alongside genuinely new bookings. For organizations evaluating DevOps platform vendors, GitLab's combination of accelerating net ARR growth, improving retention, and early consumption-model traction is a useful multi-metric picture of vendor momentum rather than a single growth number in isolation.