TLDR
- UiPath delivered Q3 earnings of $0.16 per share and revenue of $411.1 million, both exceeding analyst forecasts of $0.15 and $392 million.
- The company posted its first GAAP profitable quarter with $13 million in operating income while maintaining $1.52 billion in cash.
- Annual recurring revenue grew 11% to $1.78 billion with a dollar-based net retention rate of 107%.
- Fourth-quarter revenue guidance of $462-467 million surpasses Wall Street expectations of $463.3 million.
- Stock climbed approximately 10% in extended trading after the earnings announcement.
UiPath stock jumped 10% in after-hours trading Wednesday after the automation company reported third-quarter results that topped expectations. The earnings beat marks a turning point for the company as it achieved profitability for the first time under GAAP accounting.
The company posted adjusted earnings of $0.16 per share for Q3 fiscal 2026. Analysts had forecast $0.15. Revenue hit $411.1 million, up 16% year-over-year and well above the $392 million consensus estimate.
CEO Daniel Dines highlighted customer momentum driving the results. Annual recurring revenue reached $1.78 billion, representing 11% growth from last year. The company added $59 million in net new ARR during the quarter.
UiPath achieved a milestone that investors have been waiting for. The company generated $13 million in GAAP operating income, marking its first profitable quarter. Non-GAAP operating income totaled $88 million for the period.
Financial Position and Growth Metrics
The balance sheet remains solid with $1.52 billion in cash, cash equivalents, and marketable securities. CFO Ashim Gupta noted the company beat guidance on all fronts while reaching profitability.
Customer expansion continues at a healthy pace. The dollar-based net retention rate came in at 107%. This means existing customers increased their spending by 7% on average, showing the platform delivers value that drives expansion.
UiPath has been building strategic partnerships to enhance its platform. New integrations with Microsoft Azure AI Foundry, OpenAI, Google’s Gemini models, and NVIDIA expand capabilities for enterprise clients. These partnerships position the company to capitalize on growing demand for AI-powered automation.
Guidance Points to Continued Momentum
The company expects Q4 revenue between $462 million and $467 million. The midpoint of $464.5 million edges above the analyst consensus of $463.3 million. This outlook suggests the business momentum from Q3 carries into the final quarter.
Gartner recognized UiPath as a Leader in its Magic Quadrant for Intelligent Document Processing. The company also earned Leader status for AI-Augmented Software Testing Tools. These industry accolades validate UiPath’s competitive position in the automation market.
The stock has gained 17% year-to-date through regular trading hours. That performance trails many other AI stocks this year, but the profitability achievement could reshape investor perceptions going forward.
UiPath currently trades at 17.6 times operating cash flow. The five-year average multiple sits at 39.1, suggesting the stock trades at a discount to historical levels. The valuation gap may attract investors seeking AI exposure without paying premium multiples.
Adjusted earnings per share grew 45% year-over-year. Revenue growth of 16% outpaced ARR growth of 11%, demonstrating efficient conversion of pipeline to closed business. The company projects Q4 revenue of $462-467 million, slightly above consensus estimates.
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