Key Takeaways
- UiPath delivered Q2 revenue of $410 million, surpassing Wall Street’s $397.8 million forecast, while posting $0.15 EPS that aligned with projections
- Shares initially surged 10% following the earnings release before reversing course dramatically, declining more than 18% during Friday’s session
- Management increased fiscal 2027 revenue outlook to $1.789B-$1.794B, up from the previous forecast range
- The company’s annual recurring revenue climbed 12% on a year-over-year basis to $1.938 billion, while net revenue retention remained at 109%
- Wall Street firms including Mizuho ($14), Wells Fargo ($15), and TD Cowen ($16) lifted their price targets, while Canaccord shifted to a Hold rating citing elevated valuation levels
Shares of UiPath (PATH) were changing hands at $16.63 during Friday’s premarket session, reflecting a decline of approximately 8.7%, following a volatile post-earnings swing that saw the stock jump as much as 10% immediately after Wednesday evening’s results.
The enterprise automation platform provider reported second-quarter revenue of $410 million, representing 13% growth year-over-year and 16% growth when currency fluctuations are excluded. The figure exceeded Street expectations by approximately $12 million.
On a non-GAAP basis, the company delivered earnings per share of $0.15, precisely meeting analyst consensus forecasts.
The quarter marked UiPath’s fourth consecutive period of achieving GAAP profitability, a significant milestone for an organization that previously operated with substantial cash burn.
The company achieved a non-GAAP operating margin of 21.7%, outperforming expectations by roughly 290 basis points. Its gross profit margin remained stable at 83%.
Annual recurring revenue reached $1.938 billion, marking 12% year-over-year growth. The company added $37 million in net new ARR during the period, improving from $31 million in the comparable quarter last year. Net revenue retention stayed firm at 109%.
A particularly notable metric: artificial intelligence played a role in 18 of the company’s 20 largest deals during the quarter. UiPath has maintained that AI drives increased adoption of robotic process automation technology rather than cannibalizing demand.
Raised Outlook
Executives increased the company’s fiscal 2027 revenue projection by $13 million, establishing a new range of $1.789 billion to $1.794 billion. The non-GAAP operating income forecast also received an upward revision, climbing to approximately $445 million from the prior $430 million target.
Quarterly free cash flow declined to $31 million, attributed to the scheduling of tax payments. Management maintained its full-year free cash flow expectation at $425 million.
UiPath announced executive changes as well, elevating Hitesh Ramani to the chief financial officer position while Ashim Gupta transitions to concentrate on his responsibilities as chief operating officer.
Wall Street’s Response
Mizuho increased its price objective to $14 from $12 while retaining a Neutral stance. Wells Fargo boosted its target to $15, continuing with an Equal Weight rating. TD Cowen moved to $16, highlighting consistent execution and robust ARR momentum.
Conversely, Canaccord downgraded UiPath to Hold from Buy even while increasing its price target to $17. The analyst firm expressed concerns regarding valuation levels following the company’s strong quarterly performance.
PATH shares have climbed nearly 70% over the trailing twelve months but show only 12% appreciation year-to-date in 2026. Investor anxiety that artificial intelligence could disrupt traditional software revenues has pressured the stock in recent trading periods.
The company’s share repurchase activity fell substantially, decreasing to 2.4 million shares in Q2 from 20.4 million in the preceding quarter.
Based on current pricing, the stock commands a market capitalization of roughly $9.44 billion.
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