TLDR
- UiPath exceeded Q4 projections with earnings per share of $0.30 compared to analyst expectations of $0.26, while revenue reached $481M versus $465M anticipated
- Shares declined over 5% in early trading hours despite surpassing estimates
- Annual recurring revenue reached $1.853B by late January 2026, representing an 11% year-over-year increase
- Company revealed $200M in ARR from artificial intelligence products in its first-ever disclosure
- Fiscal 2027 revenue outlook of $1.754B–$1.759B exceeded Wall Street’s $1.74B projection
UiPath delivered an impressive fourth-quarter performance, yet investors responded with skepticism. Shares tumbled more than 5% during premarket hours on Thursday, despite the automation software company exceeding expectations on both top and bottom lines.
During the fourth quarter of fiscal 2026, UiPath reported adjusted earnings of $0.30 per share. The company generated $481.11 million in quarterly revenue. Analysts had projected earnings of $0.26 per share alongside revenue of $464.88 million.
The company’s fiscal 2026 full-year revenue totaled $1.611 billion, marking a 13% year-over-year improvement.
Annual recurring revenue climbed to $1.853 billion by January 31, 2026 — representing an 11% jump from the previous year. Net-new ARR expanded 20% on a reported basis, though it contracted 5% when measured in constant currency terms.
In a first-time disclosure, UiPath revealed that $200 million of its ARR comes from AI-powered products. This category encompasses its agents, the Maestro orchestration platform, and Intelligent Document Processing solutions.
Chief Executive Daniel Dines highlighted a semiconductor company that implemented agentic workflows in less than two weeks. He also mentioned One New Zealand, which compressed a four-to-five day order-to-cash cycle into just 10 minutes — projecting $20 million in annual savings.
“We are at an inflection point in how software is built,” Dines stated.
Forward Guidance Exceeds Expectations, Though ARR Growth Questions Remain
For the first quarter of fiscal 2027, UiPath projected revenue ranging from $395 million to $400 million. The full-year FY27 revenue forecast landed between $1.754 billion and $1.759 billion, surpassing the consensus forecast of $1.74 billion.
The automation firm anticipates FY27 ARR will fall between $2.051 billion and $2.056 billion — approximately 11% growth at the midpoint, running about 1.6% ahead of analyst consensus.
Morgan Stanley’s Sanjit Singh observed that the guidance incorporates impact from the WorkFusion acquisition, which finalized during Q1 FY27. He indicated that on an organic basis, the ARR projection suggests “relatively flat net-new ARR growth for the year.”
Terry Tillman from Truist Securities characterized it as a “solid quarter highlighted by continued sales execution and traction in AI-driven automation.”
Historic Profitability Achievement and Capital Return Program
UiPath recorded GAAP net income of $282 million for fiscal year 2026 — marking the company’s first-ever full-year GAAP profitability achievement.
Chief Financial Officer Ashim Gupta raised the company’s long-term non-GAAP operating margin target to 30%, an increase from previous guidance. Non-GAAP operating income for FY26 totaled $370 million, representing a 23% margin.
The company concluded Q4 with $1.7 billion in cash reserves and zero debt. It finalized its $1 billion share repurchase program during the period and greenlit an additional $500 million buyback authorization.
Fourth-quarter adjusted free cash flow measured $182 million. Full-year free cash flow totaled $372 million.
UiPath projected non-GAAP operating income of approximately $415 million for FY27, with non-GAAP gross margin anticipated at roughly 84%.
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