Key Highlights
- UiPath delivered Q2 revenue of $410 million, surpassing Wall Street’s $397.8 million forecast, while EPS of $0.15 aligned with projections
- Shares surged 10% immediately following the report but reversed course, plummeting more than 18% during Friday’s session
- Fiscal 2027 full-year revenue outlook increased to $1.789B-$1.794B from previous projections
- Annual recurring revenue climbed 12% year-over-year to reach $1.938 billion; net revenue retention remained at 109%
- Price targets lifted by Mizuho ($14), Wells Fargo ($15), and TD Cowen ($16), while Canaccord shifted to Hold citing valuation risks
UiPath (PATH) shares were changing hands at $16.63 during Friday’s premarket hours, declining approximately 8.7%, following a volatile reaction that saw the stock initially spike 10% immediately after Wednesday evening’s earnings release.
The enterprise automation platform reported second-quarter revenue of $410 million, representing a 13% increase compared to the prior year and 16% growth on a constant currency basis. This figure exceeded the Street consensus estimate of $397.8 million by approximately $12 million.
Non-GAAP earnings per share landed at $0.15, precisely meeting analyst forecasts.
The quarter marked UiPath’s fourth consecutive period of GAAP profitability, a significant milestone for an organization that previously experienced extended periods of negative cash flow.
The company’s non-GAAP operating margin reached 21.7%, outpacing expectations by approximately 290 basis points. Gross margin remained stable at 83%.
Annual recurring revenue stood at $1.938 billion, marking a 12% year-over-year increase. Net new ARR registered at $37 million, improving from $31 million during the comparable quarter last year. Net revenue retention maintained its position at 109%.
A particularly noteworthy metric: artificial intelligence played a role in 18 of the company’s top 20 transactions during the quarter. UiPath has maintained that AI drives increased demand for robotic process automation solutions rather than posing a competitive threat.
Upgraded Financial Outlook
The company elevated its fiscal 2027 revenue projection by $13 million, establishing a new range of $1.789 billion to $1.794 billion. Non-GAAP operating income guidance also received an upward revision, moving to approximately $445 million from the prior $430 million estimate.
Free cash flow decreased to $31 million during the quarter, attributed to the timing of tax obligations. Management maintained its full-year free cash flow projection at $425 million.
UiPath announced executive transitions, elevating Hitesh Ramani to the chief financial officer position while Ashim Gupta concentrates on his responsibilities as chief operating officer.
Wall Street’s Response
Mizuho Securities increased its price objective to $14 from $12 while maintaining a Neutral stance. Wells Fargo elevated its target to $15, continuing with an Equal Weight rating. TD Cowen moved to $16, highlighting consistent performance and robust ARR momentum.
Canaccord Genuity took a contrarian approach, downgrading UiPath to Hold from Buy despite increasing its price target to $17. The firm expressed concerns about valuation levels following the solid quarterly performance.
PATH has appreciated nearly 70% over the trailing twelve months but has advanced only 12% year-to-date in 2026. Investor apprehension regarding AI’s potential impact on software revenue streams has pressured the stock in recent periods.
Share repurchase activity declined dramatically, falling to 2.4 million shares in Q2 from 20.4 million shares during Q1.
Based on current trading levels, the stock commands a market capitalization of roughly $9.44 billion.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
