GitLab Stock Tumbles 10% Overnight: OpenAI Overhang Adds Pressure To Disappointing Outlook

OpenAI will potentially pair its internal repository platform with Codex coding agents and eventually offer it to customers.

• OpenAI is reportedly building an internal repository platform to reduce reliance on Microsoft’s GitHub.
• The project was supposedly partly triggered by recent GitHub outages that disrupted developers’ ability to collaborate on code for hours.
• GitLab forecast FY27 EPS of $0.76-$0.80, well below the $1.03 consensus, even as the company announced a $400 million share buyback program. 

Shares of GitLab, Inc. (GTLB) tumbled over 10% in overnight trading heading into Wednesday after the company issued a cautious earnings outlook, with investor sentiment further weighed down by reports that OpenAI is exploring a GitHub-style coding platform.

GTLB stock snapped two straight sessions of losses to end nearly 2% higher at $26.7 in Tuesday’s regular trade. 

OpenAI Reportedly Eyes GitHub Rival

OpenAI is reportedly building an internal code repository platform to reduce its reliance on GitHub, Microsoft’s widely-used service that allows developers to store, manage, and collaborate on software code, The Information reported, citing a person familiar with the project.

The effort was apparently partly triggered by recent GitHub outages that temporarily prevented engineers from collaborating on code or making changes for periods ranging from minutes to several hours.

The project is supposedly still in early stages and may take months to complete. However, discussions inside OpenAI have reportedly included the possibility of eventually selling access to the repository to customers, potentially pairing it with the company’s Codex coding agents, which automate tasks such as building features or debugging software.

If commercialized, such a product could put OpenAI in more direct competition with Microsoft’s developer ecosystem, despite the two companies’ broader partnership. Microsoft acquired GitHub in 2018 and integrated OpenAI models into GitHub’s AI coding assistant, Copilot.

The move also comes as AI coding tools rapidly reshape software development, with companies such as Microsoft, Meta Platforms, and Amazon saying a growing share of their internal code is now generated using AI.

GTLB Q4 Review

GitLab reported fourth-quarter (Q4) adjusted earnings of $0.30 per share, beating analyst estimates of $0.23, while revenue rose 23% year over year to $260.4 million, ahead of expectations of about $252.2 million.

For the full fiscal year 2026, revenue reached $955.2 million, up 26% from a year earlier. The company also crossed $1 billion in annual recurring revenue (ARR) during the year.

However, investors focused on the company’s guidance, which forecast fiscal 2027 adjusted earnings of $0.76 to $0.80 per share, well below the consensus estimate of $1.03 per share.

For the current quarter, the company expects revenue of $253 million to $255 million, slightly below analyst estimates of about $256.7 million, and adjusted earnings of $0.20 to $0.21 per share, roughly in line with expectations.

GitLab said it is investing in new growth initiatives, including its GitLab Duo Agent Platform, which aims to automate software development tasks using AI across the DevSecOps lifecycle. The company also authorized a $400 million share repurchase program.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for GLTB was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user said, “It does seem like a bargain post-earnings. I sold during the day and bought in the night.”

Another user said, “Take the loss. This is a solid company, but growth is slowing. More importantly, it’s making new all-time lows. That means there’s no historical support. Price discovery will take this down until a new base is formed.”

GTLB stock has declined 29% year-to-date.

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