A Look At GitLab (GTLB) Valuation As CTO Resigns And Hybrid Pricing And AI Plans Evolve

GitLab (GTLB) is back in focus after Chief Technology Officer Sabrina Farmer submitted her resignation, effective January 9, 2026, as investors pay closer attention to the company’s hybrid pricing model and AI driven growth plans.

See our latest analysis for GitLab.

GitLab’s share price has been under pressure, with a 90 day share price return of 22.39% and a 1 year total shareholder return of 39.34%, signaling fading momentum even as the CTO exit, hybrid pricing shift and AI focus keep attention high at around $36.74.

If this kind of volatility has you looking around the sector, it could be a good moment to scan high growth tech and AI stocks for other software and AI names catching market interest.

With GitLab at about $36.74, a value score of 4, an intrinsic discount of 42.53% and a 1 year total return of 39.34%, you have to ask: is there real upside left here, or is the market already pricing in future growth?

Most Popular Narrative: 31.4% Undervalued

With GitLab closing at $36.74 against a narrative fair value of about $53.52, the valuation debate focuses on how much future AI driven growth is realistic.

GitLab's expansion of AI driven capabilities across its DevSecOps platform, including the upcoming Duo Agent Platform with hybrid usage based monetization, is expected to capture increased demand for automation and developer productivity tools, potentially accelerating revenue growth and expanding margins as high value features command premium pricing and upsell opportunities.

Read the complete narrative.

This raises questions about what kind of growth and margin profile would be required for that upside case, and how rich the future earnings multiple would need to be. The full narrative breaks down the revenue path, profit ramp and discount rate that would need to align for this fair value to be justified.

Result: Fair Value of $53.52 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside story could be challenged if leadership transitions disrupt execution, or if the hybrid pricing and AI monetization shift proves slower to gain traction than expected.

Find out about the key risks to this GitLab narrative.

Build Your Own GitLab Narrative

If you see the numbers differently or want to stress test your own assumptions, it only takes a few minutes to build a custom view. So why not Do it your way today.

A great starting point for your GitLab research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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