GitLab's Platform Usage Driven Higher by AI, Morgan Stanley Says

10:48 AM EDT, 09/02/2026 (MT Newswires) -- GitLab's (GTLB) platform is witnessing a surge in usage, driven by artificial intelligence, Morgan Stanley analysts said in a Wednesday note. Analysts said that Q2 was GitLab's best quarter in some time, with revenue beating consensus estimates by 5% and several metrics pointing to sharper execution. Morgan Stanley said that while it is encouraged by the company's Q2 results, it seeks to improve its understanding of the customer reaction function to GitLab's consumption pricing plan. Analysts said that larger-than-expected migration to Flex contracts could push out revenue to future quarters, as Flex contracts do not recognize revenue upfront. Morgan Stanley retained an equal-weight rating on the stock, but increased its price target to $57 from $30. Price: 51.19, Change: +6.10, Percent Change: +13.53