Key Takeaways:
- Agentic AI Momentum: Over 950 companies are developing agents on UiPath’s platform, with 365,000 processes orchestrated through Maestro.
- Price Projection: Based on current execution, PATH stock could reach $12.68 by January 2028.
- Potential Gains: This target implies a total return of 12% from the current price of $11.32.
- Annual Return: Investors could see roughly 6% growth over the next 2 years.
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UiPath (PATH) delivered a strong third quarter in fiscal 2026, beating guidance across all metrics and posting its first GAAP profitable quarter. The company now expects to achieve full-year GAAP profitability for the first time in its history.
CEO Daniel Dines highlighted robust momentum in agentic automation, with customers moving rapidly from pilots to production deployments.
- Annual recurring revenue reached $1.78 billion, up 11% year-over-year, while revenue grew 16% to $411 million.
- The company added $59 million in net new ARR, signaling stabilization of the business.
- Companies face mounting pressure to reduce costs while handling increasingly complex workflows.
- UiPath’s platform combines traditional robotic process automation with AI agents that can handle non-deterministic tasks, all orchestrated through Maestro.
- One investment management firm demonstrated the platform’s potential by deploying multiple agentic proofs of concept, achieving a 95% reduction in time to value.
- They’ve identified more than 40 high-value use cases that are expected to generate more than $200 million in savings over three years.
Despite strong fundamentals and expanding AI capabilities, UiPath trades at $11.32, leaving room for upside for investors who recognize the company’s position in enterprise automation infrastructure.
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What the Model Says for UiPath Stock
We analyzed UiPath’s transformation from a pure RPA provider to a comprehensive agentic automation platform.
The company benefits from structural tailwinds. Enterprises are automating document-heavy processes in healthcare revenue cycle management, financial services compliance, and insurance claims processing.
UiPath’s platform handles everything from simple task automation to complex AI-driven workflows.
The agentic automation opportunity provides significant upside. USI Insurance Services selected UiPath for multi-agent orchestration capabilities and expects over $32 million in savings over three years.
Corewell Health plans to redirect $1.5 million of labor savings this year using intelligent document processing, with over $3 million expected next year.
Management expects continued momentum as customers scale from pilots to production. The company’s focus on vertical solutions—combining automation, AI agents, and orchestration for specific industries—should accelerate time-to-value and strengthen competitive positioning.
Using a forecast of 9.6% annual revenue growth and 23.3% operating margins, our model projects the stock will rise to $12.68 within 2 years. This assumes a 15x price-to-earnings multiple.
That represents compression from UiPath’s historical P/E of 21.3x over the past year. The lower multiple acknowledges near-term headwinds as the company works to stabilize net new ARR growth and prove out agentic automation monetization at scale.
The real value lies in capturing enterprise demand for trustworthy AI automation that delivers measurable ROI. While agentic products won’t contribute materially to fiscal 2026 results, they’re already driving platform pull-through and deeper customer engagement.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for PATH stock:
1. Revenue Growth: 9.6%
UiPath’s growth centers on expanding its automation platform across enterprises.
The company delivered solid execution in Q3, with improved sales performance and stronger customer activity across proofs of concept, pilots, and renewals.
Recent product launches strengthen the growth outlook.
- UiPath ScreenPlay combines traditional RPA with large language models to automate complex UI tasks.
- The company also introduced agentic capabilities to its document processing product and launched API workflows to complement RPA and agents.
- Over 950 companies are developing agents on the platform, though direct monetization remains in early stages.
- Management sees continued momentum in platform pull-through, as customers invest in UiPath as a long-term component of their enterprise architecture.
2. Operating margins: 23.3%
UiPath achieved 21% non-GAAP operating margins in Q3, up over 700 basis points year-over-year.
This performance reflects disciplined cost management while continuing to invest in engineering and sales capacity.
The company is driving efficiency through focused prioritization rather than austerity.
Management continues hiring in core areas—engineering, sales, and forward-deployed engineers—while streamlining overhead functions.
This approach should enable continued margin expansion as revenue scales.
3. Exit P/E Multiple: 15x
The market values UiPath at roughly 21x earnings based on recent performance. We assume the P/E will compress to 15x over our forecast period.
Near-term uncertainty around agentic automation monetization weighs on the multiple. While customer activity is strong, the path from pilots to scaled production deployments remains unclear.
A dollar-based net retention of 107% indicates stability but modest expansion relative to high-growth software peers.
As UiPath demonstrates consistent ARR growth and proves agentic automation drives material revenue, the company should command a premium multiple.
The unified platform architecture—combining automation, AI agents, and orchestration with built-in governance—provides sustainable competitive advantage.
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What Happens If Things Go Better or Worse?
Software automation companies face adoption cycles and competitive pressure. Here’s how UiPath stock might perform under different scenarios through January 2030:
- Low Case: If revenue growth slows to 7.3% and net income margins compress to 20%, investors still see a 3% total loss (negative 1% annually).
- Mid Case: With 8.1% growth and 21.6% margins, we expect a total return of 23% (5.4% annually).
- High Case: If agentic automation adoption accelerates, driving 9% revenue growth while UiPath maintains 23% margins, total returns could reach 52% (11% annually).
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The range reflects execution on agentic automation adoption, successful navigation of the evolving AI landscape, and the company’s ability to convert customer pilot programs into scaled production deployments that drive meaningful revenue growth.
How Much Upside Does UiPath Stock Have From Here?
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- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
