UiPath (NYSE:PATH) Posts Earnings Results, Meets Estimates

UiPath (NYSE:PATH) released its quarterly earnings results on Thursday. The company reported $0.15 EPS for the quarter, hitting the consensus estimate of $0.15, Briefing.com reports. The company had revenue of $410.26 million during the quarter, compared to analyst estimates of $397.77 million. UiPath had a return on equity of 7.92% and a net margin of 19.58%.The firm’s revenue was up 13.3% on a year-over-year basis. During the same quarter last year, the business posted $0.15 earnings per share.

Here are the key takeaways from UiPath’s conference call:

• UiPath exceeded second-quarter guidance, with revenue of $410 million, up 13%, ARR of $1.938 billion, up 12%, and non-GAAP operating margin expanding to 22%. The company also delivered its fourth consecutive quarter of GAAP profitability.
• AI is becoming central to larger customer engagements: 18 of the top 20 deals included AI, while customers increasingly consolidate automation, orchestration, testing, and AI workloads on UiPath’s platform. Dollar-based net retention improved to 109%, and customers with at least $1 million in ARR grew 21% to 387.
• Management highlighted early results from coding agents that reduce forward-deployed engineering effort by nearly 60%, potentially accelerating customer time to value and lowering total cost of ownership. The company is also expanding vertical offerings in areas such as financial crime, revenue-cycle management, invoice processing, and software testing.
• UiPath forecast third-quarter revenue of $440 million to $445 million and full-year revenue of $1.789 billion to $1.794 billion, while maintaining full-year adjusted free cash flow guidance of approximately $425 million. Guidance includes foreign-exchange headwinds, and second-quarter adjusted free cash flow declined to $31 million from $45 million due primarily to the timing of tax payments.
• Ashim Gupta will move exclusively into the COO role, with Hitesh Ramani succeeding him as CFO. Management characterized the transition as planned and low-risk, citing Ramani’s long tenure and existing role as deputy CFO.

UiPath Price Performance

Shares of NYSE PATH opened at $18.09 on Friday. UiPath has a 1 year low of $9.20 and a 1 year high of $19.84. The firm has a 50-day simple moving average of $13.82 and a two-hundred day simple moving average of $11.92. The company has a market cap of $9.37 billion, a P/E ratio of 30.15, a PEG ratio of 2.16 and a beta of 1.02.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on PATH shares. Wall Street Zen downgraded UiPath from a “buy” rating to a “hold” rating in a research report on Saturday, May 30th. Royal Bank Of Canada lifted their target price on UiPath from $12.00 to $15.00 and gave the stock a “sector perform” rating in a report on Friday, August 14th. Bank of America boosted their target price on UiPath from $12.00 to $13.00 and gave the company an “underperform” rating in a research report on Friday, May 29th. Canaccord Genuity Group set a $17.00 price target on UiPath in a report on Friday. Finally, TD Cowen restated a “hold” rating on shares of UiPath in a research report on Friday. Two analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $14.93.

More UiPath News

Here are the key news stories impacting UiPath this week:

• Positive Sentiment: Revenue beat expectations: Fiscal Q2 revenue rose approximately 13.3% year over year to $410.3 million, exceeding the roughly $397.8 million consensus estimate. Adjusted earnings of $0.15 per share matched expectations, while the company also swung to positive GAAP operating income. UiPath Reports Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Higher guidance: UiPath forecast fiscal third-quarter revenue of $440 million to $445 million, slightly above the $441.1 million analyst estimate. Fiscal 2027 revenue guidance of $1.789 billion to $1.794 billion implies continued growth, with expected non-GAAP operating income of approximately $445 million. UiPath FY2027 Guidance
• Positive Sentiment: AI and enterprise demand remain central to the story: Management said artificial intelligence is expanding the number of tasks enterprises can automate and increasing demand for orchestration and governance tools. A new strategic automation agreement with STC Bahrain provides an additional, though relatively small, commercial catalyst. STC Bahrain UiPath Deal
• Neutral Sentiment: Leadership transition: UiPath announced executive changes and appointed a new board member, including a finance leadership transition. The changes could support long-term execution, but investors may initially view added management uncertainty cautiously. UiPath Executive Leadership Changes
• Negative Sentiment: Valuation and profit-taking are overshadowing the beat: PATH had risen sharply recently and was trading near its 52-week high, raising the bar for results. Analysts noted that roughly 12% growth lacks the acceleration seen among some AI-focused software peers, while the stock’s valuation leaves less room for disappointment. Concerns that AI could disrupt traditional software revenue also remain. Why PATH Stock Is Tumbling

Insider Activity at UiPath

In other news, CEO Daniel Dines sold 1,402,347 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $16.07, for a total value of $22,535,716.29. Following the sale, the chief executive officer directly owned 26,491,238 shares in the company, valued at approximately $425,714,194.66. This represents a 5.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 22.44% of the company’s stock.

Hedge Funds Weigh In On UiPath

Large investors have recently bought and sold shares of the business. Meeder Advisory Services Inc. increased its stake in UiPath by 7.6% in the fourth quarter. Meeder Advisory Services Inc. now owns 12,132 shares of the company’s stock worth $199,000 after purchasing an additional 861 shares during the period. Advisory Services Network LLC lifted its position in shares of UiPath by 13.2% during the fourth quarter. Advisory Services Network LLC now owns 13,735 shares of the company’s stock worth $225,000 after purchasing an additional 1,597 shares during the last quarter. Atlas Capital Advisors Inc. purchased a new stake in shares of UiPath during the fourth quarter valued at $37,000. Prosperity Wealth Management Inc. boosted its stake in shares of UiPath by 12.7% during the third quarter. Prosperity Wealth Management Inc. now owns 23,900 shares of the company’s stock valued at $320,000 after purchasing an additional 2,700 shares during the period. Finally, CIBC Asset Management Inc grew its holdings in shares of UiPath by 18.7% in the fourth quarter. CIBC Asset Management Inc now owns 17,924 shares of the company’s stock worth $294,000 after purchasing an additional 2,826 shares during the last quarter. Hedge funds and other institutional investors own 62.50% of the company’s stock.

UiPath Company Profile

UiPath Inc provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric.