GitLab(NASDAQ: GTLB) stock saw big gains this week after the company served up a beat-and-raise quarterly report. The company's share price climbed 11.1% across the stretch against the backdrop of a 0.3% gain for the S&P 500and a 0.2% gain for the Nasdaq Composite.

After the market closed on Tuesday, GitLab published results for the second quarter of its 2027 fiscal year -- which ended July 31. The stock is now up roughly 33% year to date.

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GitLab's fiscal Q2 results were much better than expected

With its fiscal Q2 report, GitLab posted non-GAAP (adjusted) earnings per share of $0.24 on revenue of $286.3 million -- significantly outperforming the average Wall Street analyst estimate for per-share earnings of $0.18 on sales of roughly $273.4 million. Revenue in the period was up roughly 21% year over year, and adjusted earnings per share were in line with the prior-year quarter. The business notched record bookings in the quarter, and net annualized recurring revenue increased more than 40% year over year.

GitLab also delivered guidance hikes

Following strong sales and contract momentum in fiscal Q2, GitLab raised its full-year sales target to between $1.129 billion and $1.133 billion -- up from previous guidance for sales between $1.112 billion and $1.118 billion. Before the report, the average analyst estimate put target sales at $1.12 billion. Meanwhile, adjusted earnings per share are now projected to be between $0.85 and $0.87 -- up from previous guidance for adjusted earnings between $0.79 per share and $0.82 per share.

Notably, demand related to artificial intelligence played a significant role in powering the company's beat-and-raise quarter. The growth of AI software creation looks poised to create sustained tailwinds for the tech specialist.

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