Key Stats for UiPath Stock
- Pre-market Price Change for UiPath stock: 8%
- $PATH Share Price as of Dec. 3 $14.86
- 52-Week High: $18.74
- $PATH Stock Price Target: $13.87
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What Happened?
UiPath (PATH) stock is up over 8% pre-market after the robotic process automation company reported third-quarter results that crushed Wall Street expectations.
The AI stock had already climbed 4% yesterday, and the momentum accelerated once investors digested the earnings report.
The company posted Q3 revenue of $411 million, up 16% year-over-year and well above the $392.9 million analysts expected.
UiPath also delivered adjusted earnings per share of $0.16, beating the $0.15 consensus and representing a 45% jump from the prior year.
Perhaps most impressive was the company’s achievement of its first GAAP profitable third quarter. CEO Daniel Dines emphasized that UiPath is on track to be GAAP profitable for the full fiscal year 2026, marking a significant milestone for the company.
The earnings call highlighted strong momentum around UiPath’s agentic automation platform, which combines traditional robotic process automation with AI-powered agents.
More than 950 companies are now developing agents on the platform, and customers have orchestrated over 365,000 processes using Maestro, UiPath’s orchestration engine.
Dines shared several compelling customer examples, including a leading investment management firm that achieved a 95% reduction in time to value and expects more than $200 million in savings over three years.
Another customer, USI Insurance Services, is targeting over $32 million in savings by using UiPath agents and robots orchestrated by Maestro.
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What the Market Is Telling Us About UiPath Stock
The positive reaction to UiPath stock suggests investors are relieved that the company is successfully navigating the shift to AI-powered automation. Many had worried that large language models might disrupt UiPath’s core business, but the opposite appears to be happening.
CFO Ashim Gupta explained that customers initially tried building their own AI solutions but quickly hit roadblocks. “The last mile is hard,” he said, noting that enterprise AI requires context, data, metadata, and deterministic workflows that only platforms like UiPath can provide at scale.
The company’s dollar-based net retention rate held steady at 107%, indicating that existing customers continue to expand their UiPath deployments. Annual recurring revenue (ARR) reached $1.782 billion, up 11% year-over-year, with net new ARR of $59 million in the quarter.
UiPath’s fourth-quarter guidance also exceeded expectations. It expects revenue between $462 million and $467 million, above the consensus estimate.
This suggests management sees continued momentum heading into the final quarter of fiscal 2026.
The earnings call revealed interesting dynamics around how UiPath is monetizing its AI capabilities. While the company doesn’t expect material revenue contribution from agentic automation in fiscal 2026, these new products are driving adoption across the entire platform.
Customers buying agentic solutions are also purchasing more robots, intelligent document processing licenses, and orchestration capabilities.
UiPath stock has underperformed the broader tech sector this year, up just 8% compared to the Nasdaq’s 21% gain. But the company’s improving fundamentals suggest a potential turning point. The business achieved a 21% non-GAAP operating margin, up more than 700 basis points year-over-year, showing substantial operational leverage as the company scales.
If the company can maintain its momentum in agentic automation adoption and continue to demonstrate GAAP profitability, the valuation gap could close as investor confidence builds.
Investors should watch whether UiPath can sustain net new ARR growth in fiscal 2027 and whether agentic automation begins contributing meaningfully to revenue.
The company’s partnerships with OpenAI, Microsoft, NVIDIA, Google, and Snowflake position it well to capture enterprise AI spending, but execution will be key.
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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!
