Financial Data and Key Metrics Changes - Second quarter revenue increased to $362 million, representing a 14% year-over-year growth, with a normalized growth of 12% after accounting for foreign exchange impacts [23][26] - Annual Recurring Revenue (ARR) grew 11% to $1.723 billion, driven by $31 million in net new ARR, with a normalized growth of 11% after foreign exchange adjustments [5][23] - Non-GAAP operating income rose to $62 million, reflecting a 17% margin and an improvement of over 1,500 basis points year-over-year [6][26] - Dollar-based net retention rate remained at 108%, indicating strong customer retention and expansion [25] Business Line Data and Key Metrics Changes - The launch of agentic automation solutions has led to increased deal sizes and customer engagement, with 450 customers actively developing agents [5][33] - The company reported that over 95% of new logos included core automation capabilities, indicating strong demand for foundational automation solutions [8] - The cloud ARR exceeded $1.08 billion, marking a growth of over 25% [23] Market Data and Key Metrics Changes - The financial and healthcare sectors showed strong demand, while the public sector is stabilizing with recent wins from agencies like the U.S. Navy and IRS [80][43] - The company ended the quarter with approximately 10,820 customers, with a focus on long-term enterprise clients [24] Company Strategy and Development Direction - The company is focused on combining automation and AI to enhance enterprise transformation, emphasizing the importance of orchestration through its Maestro platform [4][10] - The strategy includes deepening partnerships with major GSIs and technology platforms, such as Microsoft and Deloitte, to enhance agentic automation capabilities [17][66] - The company aims to continue investing in innovation while driving operational efficiencies to capture the growing automation market [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the public sector's return to normalized buying behavior and the overall macroeconomic environment stabilizing [27][84] - The company anticipates continued growth in ARR and revenue, with guidance for the third fiscal quarter set between $390 million to $395 million [28][29] - Management acknowledged that while agentic capabilities are still in early adoption phases, they expect to contribute more significantly in the future [27][74] Other Important Information - The company repurchased 8.3 million shares of Class A common stock at an average price of $12.10, reflecting confidence in long-term opportunities [26] - The company launched initiatives to support customer adoption of agentic automation, including a no-sign-up testing environment called UiPath Playground [11] Q&A Session Summary Question: Client demand progression on agentic solutions - Management noted encouraging progress with 450 customers actively working on agentic solutions, leading to increased deal sizes and uncovering more automation opportunities [33][34] Question: Stability of dollar-based net retention rate - Management indicated that the dollar-based net retention rate is stabilizing and reflected a prudent outlook on the macroeconomic environment [35][36] Question: Key pitch for Maestro orchestration - The key pitch emphasizes an agnostic approach to orchestration, allowing customers to integrate across multiple business systems without being locked into a single platform [38][39] Question: Performance of U.S. federal business - Management reported strong momentum in the public sector, with recent wins and positive feedback from major customers [42][43] Question: Incremental contributions from U.S. public sector - Management expects incremental contributions from the U.S. public sector in the second half of the year due to a more stabilized environment [84][86]

Financial Performance - Revenue for 2Q 2026 reached $3617 million, representing a 14% year-over-year growth rate[10, 13, 42] - ARR reached $1723 billion, with an 11% year-over-year growth rate[11, 13] - Non-GAAP operating income was $623 million, resulting in a 17% non-GAAP operating margin[12, 13] - GAAP gross margin was 82% in 2Q 2026, compared to 80% in 2Q 2025[42] - Non-GAAP gross margin was 84% in 2Q 2026, compared to 83% in 2Q 2025[43] Customer Growth - The number of customers with ≥ $100k ARR increased to 2432 in 2Q 2026 from 2163 in 2Q 2025[40] - The number of customers with ≥ $1 million ARR increased to 320 in 2Q 2026 from 293 in 2Q 2025[40] - Dollar-based net retention rate was 108%[38] Future Outlook - The company projects revenue between $390 million and $395 million for 3Q 2026[45] - The company projects ARR between $1771 billion and $1776 billion for 3Q 2026[45] - The company projects revenue between $1571 billion and $1576 billion for FY 2026[45] - The company projects ARR between $1834 billion and $1839 billion for FY 2026[45]

Financial Performance - UiPath reported quarterly earnings of 15 cents per share, exceeding the Street estimate of 8 cents [1] - Quarterly revenue reached $362 million, surpassing the analyst consensus estimate of $347.53 million and increasing from $316.25 million in the same quarter last year [1] Annual Recurring Revenue (ARR) - ARR grew 11% year-over-year to $1.723 billion, indicating improved execution and growing momentum in the company's capabilities [3] - Net new ARR was reported at $31 million [5] - The dollar-based net retention rate stood at 108% [5] Profitability Metrics - Non-GAAP gross margin was 84% [5] - Non-GAAP operating income amounted to $62 million [5] - Non-GAAP adjusted free cash flow was $45 million [5] Future Outlook - UiPath raised its fiscal 2026 revenue outlook to between $1.571 billion and $1.576 billion, compared to the previous estimate of $1.566 billion [4] Stock Performance - Following the earnings report, UiPath stock increased by 2.49%, reaching $11.12 in extended trading [4]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 FY26 Performance Overview](index=1&type=section&id=Q2%20FY26%20Performance%20Overview) UiPath reported strong financial results for the second quarter of fiscal 2026, exceeding guidance across key metrics, driven by growth in agentic automation capabilities Second Quarter Fiscal 2026 Key Financial Highlights: | Metric | Value | Year-over-Year Change | | :--------------------------------- | :---------------- | :-------------------- | | Revenue | $362 million | +14% | | ARR (as of July 31, 2025) | $1.723 billion | +11% | | Cash flow from operations | $42 million | N/A | | Non-GAAP adjusted free cash flow | $45 million | N/A | [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) The CEO highlighted strong ARR growth and the momentum of agentic capabilities, emphasizing the combined strength of automation and agentic AI. The CFO noted strong execution, exceeding guidance, and a focus on operational efficiency positioning the company well for the second half of the year - CEO Daniel Dines stated that **ARR growth** reflects improved execution and the growing momentum of agentic capabilities, with customers moving beyond pilots into production deployments, orchestrating agents, robots, and humans to achieve real outcomes. He emphasized that automation and agentic AI are stronger together, delivering value and positioning UiPath to lead enterprise transformation[2](index=2&type=chunk) - CFO Ashim Gupta highlighted **strong execution** across the business, exceeding the high end of guidance for all key financial metrics. He noted momentum from customers and partners around the agentic automation platform, combined with a continued focus on operational efficiency, as key factors for a strong second half of the year[4](index=4&type=chunk) [Financial Highlights & Outlook](index=1&type=section&id=Financial%20Highlights%20%26%20Outlook) [Second Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Financial%20Highlights) UiPath reported significant year-over-year growth in revenue and ARR, alongside improved gross margins and a shift from GAAP operating loss to non-GAAP operating income for Q2 FY26 Q2 Fiscal 2026 Financial Highlights (as of July 31, 2025): | Metric | Value | YoY Change | | :--------------------------------- | :---------------- | :--------- | | Revenue | $362 million | +14% | | ARR | $1.723 billion | +11% | | Net new ARR | $31 million | N/A | | Dollar based net retention rate | 108% | N/A | | GAAP gross margin | 82% | +2 ppts | | Non-GAAP gross margin | 84% | +1 ppt | | GAAP operating loss | $(20) million | Reduced from $(103)M | | Non-GAAP operating income | $62 million | Increased from $6.4M | | Net cash flow from operations | $42 million | N/A | | Non-GAAP adjusted free cash flow | $45 million | N/A | | Cash, cash equivalents, and marketable securities | $1.52 billion | N/A | [Financial Outlook (Q3 FY26 & Full Year FY26 Guidance)](index=1&type=section&id=Financial%20Outlook%20(Q3%20FY26%20%26%20Full%20Year%20FY26%20Guidance)) UiPath provided optimistic financial guidance for Q3 FY26 and the full fiscal year 2026, projecting continued growth in revenue, ARR, and non-GAAP operating income Financial Outlook: | Metric | Q3 Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance | | :-------------------------- | :-------------------------- | :----------------------------- | | Revenue | $390 million to $395 million | $1.571 billion to $1.576 billion | | ARR (as of period end) | $1.771 billion to $1.776 billion | $1.834 billion to $1.839 billion | | Non-GAAP operating income | Approximately $70 million | Approximately $340 million | - Reconciliation of non-GAAP operating income guidance to GAAP measures is not available without unreasonable efforts due to high variability and low visibility of excluded charges, particularly stock-based compensation expense[4](index=4&type=chunk)[7](index=7&type=chunk) [Recent Business Developments](index=2&type=section&id=Recent%20Business%20Developments) [Strategic Collaborations & Partnerships](index=2&type=section&id=Strategic%20Collaborations%20%26%20Partnerships) UiPath advanced its strategic digital transformation initiatives through key collaborations, including a successful ERP modernization with Deloitte and a strategic partnership with HCLTech to accelerate agentic automation for global enterprises - UiPath collaborated with Deloitte to redefine ERP modernization, successfully migrating to SAP S/4HANA with **93% clean core in solution design** and **88% clean core across overall implementation**, advancing operational excellence[12](index=12&type=chunk) - UiPath announced a strategic partnership with HCLTech to accelerate agentic automation for global enterprises, aiming to drive large-scale transformation and enable more intelligent, self-sufficient operations with minimal human intervention[12](index=12&type=chunk) [Leadership Appointments](index=2&type=section&id=Leadership%20Appointments) UiPath strengthened its leadership team with the appointment of Michael Atalla as Chief Marketing Officer, bringing over 20 years of experience to elevate the company's leadership in agentic AI and orchestration - Michael Atalla was appointed Chief Marketing Officer, responsible for global marketing strategy and elevating UiPath's leadership in agentic AI and orchestration, leveraging over **20 years of experience** from F5 and Microsoft[12](index=12&type=chunk) [Industry Recognition](index=2&type=section&id=Industry%20Recognition) UiPath was recognized as a Leader in the 2025 Gartner Magic Quadrant™ for Robotic Process Automation for the seventh consecutive year, demonstrating its strong ability to execute - UiPath was positioned as a Leader in the 2025 Gartner Magic Quadrant™ for Robotic Process Automation (RPA) for the **seventh year in a row**, recognized for the highest Ability to Execute[12](index=12&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About UiPath](index=3&type=section&id=About%20UiPath) UiPath is a global leader in agentic automation, providing a platform that combines controlled agency, developer flexibility, and seamless integration to help enterprises scale AI-driven automation securely and confidently - UiPath is a **global leader in agentic automation**, enabling enterprises to use AI agents for autonomous execution and optimization of complex business processes[14](index=14&type=chunk) - The UiPath Platform™ offers controlled agency, developer flexibility, and seamless integration, supporting enterprises in transitioning to an AI-transformed future with a focus on security, governance, and interoperability[14](index=14&type=chunk) [Disclaimers & Definitions](index=3&type=section&id=Disclaimers%20%26%20Definitions) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the company's forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from projections - Statements in the press release that are not historical facts are considered forward-looking, covered by safe harbor provisions of the Private Securities Litigation Reform Act of 1995[15](index=15&type=chunk)[16](index=16&type=chunk) - Forward-looking statements include financial guidance, growth strategies, market opportunity, platform success, collaborations, customer behavior, and stock repurchase programs, all subject to risks such as revenue variability, ability to manage growth, customer retention, and market competition[17](index=17&type=chunk) - Investors are cautioned that actual results may differ materially due to various risks and uncertainties detailed in SEC filings, and the company assumes no obligation to update these statements[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Key Performance Metric Definitions](index=4&type=section&id=Key%20Performance%20Metric%20Definitions) This section defines key performance metrics, Annualized Renewal Run-rate (ARR) and Dollar-based net retention rate, used by UiPath to manage its business and evaluate customer relationships - Annualized Renewal Run-rate (ARR) is defined as annualized invoiced amounts per solution SKU from subscription licenses and maintenance/support, excluding perpetual licenses or professional services, and is a key metric for acquiring and expanding customer relationships[20](index=20&type=chunk) - Dollar-based net retention rate represents the net expansion of ARR from existing customers over the preceding 12 months, calculated by comparing current period ARR from a cohort of customers to their prior period ARR, net of contraction or attrition[21](index=21&type=chunk) - Investors should not unduly rely on ARR or dollar-based net retention rate as indicators of future results, as their presentation may differ from other companies[22](index=22&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains UiPath's use of non-GAAP financial measures, detailing the specific exclusions from GAAP figures and the rationale for their presentation to investors - Non-GAAP financial measures, including gross profit, operating income, and net income, exclude stock-based compensation, amortization of acquired intangibles, employer payroll tax related to equity, restructuring costs, charitable donations, changes in fair value of contingent consideration, and estimated tax adjustments[23](index=23&type=chunk) - Non-GAAP adjusted free cash flow is calculated by adjusting GAAP operating cash flows for purchases of property and equipment, cash paid for employer payroll taxes on equity transactions, net payments/receipts of employee tax withholdings, and cash paid for restructuring costs[24](index=24&type=chunk) - UiPath uses these non-GAAP measures internally and believes they are useful to investors for evaluating ongoing operating results and trends, and for comparing financial results with industry peers, but they should be considered in addition to, not as a substitute for, GAAP measures[25](index=25&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) The Condensed Consolidated Statements of Operations show UiPath's GAAP financial performance for the three and six months ended July 31, 2025, and 2024, indicating a significant reduction in net loss year-over-year Condensed Consolidated Statements of Operations (in thousands): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $361,728 | $316,253 | $718,352 | $651,365 | | Total cost of revenue | $64,380 | $63,320 | $128,237 | $118,645 | | Gross profit | $297,348 | $252,933 | $590,115 | $532,720 | | Operating loss | $(20,185) | $(103,349) | $(36,597) | $(152,814) | | Net income (loss) | $1,584 | $(86,097) | $(20,971) | $(114,833) | | Net income (loss) per share, basic | $0.00 | $(0.15) | $(0.04) | $(0.20) | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) The Condensed Consolidated Balance Sheets provide a snapshot of UiPath's financial position as of July 31, 2025, compared to January 31, 2025, showing changes in assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands): | Metric | As of July 31, 2025 | As of January 31, 2025 | | :--------------------------------- | :------------------ | :------------------- | | Total current assets | $2,030,736 | $2,338,559 | | Total assets | $2,592,317 | $2,865,270 | | Total current liabilities | $738,417 | $798,920 | | Total liabilities | $926,614 | $1,019,508 | | Total stockholders' equity | $1,665,703 | $1,845,762 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows detail UiPath's cash movements from operating, investing, and financing activities for the six months ended July 31, 2025, and 2024, showing increased cash provided by operations Condensed Consolidated Statements of Cash Flows (in thousands): | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $160,589 | $146,413 | | Net cash used in investing activities | $(80,578) | $(5,893) | | Net cash used in financing activities | $(346,806) | $(260,887) | | Net decrease in cash, cash equivalents, and restricted cash | $(250,579) | $(122,365) | | Cash, cash equivalents, and restricted cash - end of period | $629,055 | $939,751 | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) [Cost of Revenue, Gross Profit and Margin Reconciliation](index=9&type=section&id=Cost%20of%20Revenue%2C%20Gross%20Profit%20and%20Margin%20Reconciliation) This section reconciles GAAP cost of revenue, gross profit, and gross margin to their non-GAAP counterparts, primarily by adjusting for stock-based compensation and amortization of acquired intangibles Reconciliation of GAAP to Non-GAAP Gross Profit and Margin (in thousands, except percentages): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP gross profit | $297,348 | $252,933 | $590,115 | $532,720 | | GAAP gross margin | 82% | 80% | 82% | 82% | | Non-GAAP gross profit | $304,814 | $263,185 | $605,659 | $551,398 | | Non-GAAP gross margin | 84% | 83% | 84% | 85% | | **Adjustments:** | | | | | | Stock-based compensation expense | $6,040 | $8,299 | $12,642 | $15,045 | | Amortization of acquired intangible assets | $1,176 | $1,414 | $2,097 | $2,851 | | Employer payroll tax expense related to employee equity transactions | $105 | $95 | $202 | $338 | | Restructuring costs | $145 | $444 | $603 | $444 | [Operating Expenses, Loss and Margin Reconciliation](index=10&type=section&id=Operating%20Expenses%2C%20Loss%20and%20Margin%20Reconciliation) This section reconciles GAAP operating expenses and loss to non-GAAP operating expenses and income, highlighting adjustments for stock-based compensation, amortization, and restructuring costs, which significantly improved operating results Reconciliation of GAAP to Non-GAAP Operating Income and Margin (in thousands, except percentages): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP operating loss | $(20,185) | $(103,349) | $(36,597) | $(152,814) | | GAAP operating margin | (6)% | (33)% | (5)% | (23)% | | Non-GAAP operating income | $62,293 | $6,454 | $131,909 | $56,819 | | Non-GAAP operating margin | 17% | 2% | 18% | 9% | | **Adjustments:** | | | | | | Stock-based compensation expense | $78,006 | $94,305 | $154,367 | $183,032 | | Amortization of acquired intangible assets | $2,254 | $1,751 | $3,662 | $3,779 | | Employer payroll tax expense related to employee equity transactions | $1,099 | $1,135 | $2,160 | $3,646 | | Restructuring costs | $1,396 | $12,612 | $4,407 | $12,612 | | Charitable donation of Class A common stock | — | — | $4,187 | $6,564 | | Change in fair value of contingent consideration | $(277) | — | $(277) | — | [Net Income (Loss) and Net Income (Loss) Per Share Reconciliation](index=11&type=section&id=Net%20Income%20(Loss)%20and%20Net%20Income%20(Loss)%20Per%20Share%20Reconciliation) This section reconciles GAAP net income (loss) and per share figures to non-GAAP net income and per share, demonstrating a positive non-GAAP net income despite a GAAP net loss, primarily due to adjustments for non-cash expenses Reconciliation of GAAP to Non-GAAP Net Income and Per Share (in thousands, except per share data): | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP net income (loss) | $1,584 | $(86,097) | $(20,971) | $(114,833) | | Non-GAAP net income | $80,331 | $23,764 | $140,505 | $96,982 | | GAAP net income (loss) per share, diluted | $0.00 | $(0.15) | $(0.04) | $(0.20) | | Non-GAAP net income per share, diluted | $0.15 | $0.04 | $0.26 | $0.17 | | **Adjustments:** | | | | | | Stock-based compensation expense | $78,006 | $94,305 | $154,367 | $183,032 | | Amortization of acquired intangible assets | $2,254 | $1,751 | $3,662 | $3,779 | | Employer payroll tax expense related to employee equity transactions | $1,099 | $1,135 | $2,160 | $3,646 | | Restructuring costs | $1,396 | $12,612 | $4,407 | $12,612 | | Charitable donation of Class A common stock | — | — | $4,187 | $6,564 | | Change in fair value of contingent consideration | $(277) | — | $(277) | — | | Tax adjustments to add-backs | $(3,731) | $58 | $(7,030) | $2,182 | [Operating Cash Flow to Adjusted Free Cash Flow Reconciliation](index=12&type=section&id=Operating%20Cash%20Flow%20to%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) This section reconciles GAAP operating cash flow to non-GAAP adjusted free cash flow, showing the adjustments made for capital expenditures, payroll taxes, and restructuring costs Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow (in thousands): | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | GAAP net cash provided by operating activities | $160,589 | $146,413 | | Non-GAAP adjusted free cash flow | $161,570 | $149,777 | | **Adjustments:** | | | | Purchases of property and equipment | $(12,832) | $(2,656) | | Cash paid for employer payroll taxes related to employee equity transactions | $2,270 | $3,267 | | Net payments (receipts) of employee tax withholdings on stock option exercises | $11 | $(9) | | Cash paid for restructuring costs | $11,532 | $2,762 | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Details for the conference call and webcast discussing UiPath's second quarter fiscal 2026 financial results and guidance - UiPath hosted a conference call on Thursday, September 4, 2025, at **5:00 p.m. Eastern Time** to discuss Q2 FY26 financial results and guidance[9](index=9&type=chunk) - Access to the call was available via dial-in (1-201-689-8057 domestic, 1-877-407-8309 international) with passcode 13754760, and a live webcast was available on the 'Investor Relations' page of UiPath's website (https://ir.uipath.com), with a replay archived for one year[9](index=9&type=chunk) [Gartner Disclaimer](index=2&type=section&id=Gartner%20Disclaimer) A standard disclaimer clarifying Gartner's role and the nature of its research publications, emphasizing that Gartner does not endorse vendors and its research consists of opinions, not statements of fact - Gartner is a registered trademark and service mark, and MAGIC QUADRANT is a registered trademark, used with permission[10](index=10&type=chunk) - Gartner does not endorse any vendor, product, or service in its research and does not advise technology users to select only top-rated vendors[11](index=11&type=chunk) - Gartner research publications consist of opinions and should not be construed as statements of fact, with Gartner disclaiming all warranties regarding the research[11](index=11&type=chunk) [Investor and Media Contacts](index=12&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries - Investor Relations Contact: Allise Furlani, Investor.relations@uipath.com[41](index=41&type=chunk) - Media Contact: PR@uipath.com[41](index=41&type=chunk)

Core Insights - UiPath Inc. (PATH) is scheduled to report its second-quarter fiscal 2026 results on September 4, with earnings expected to be 8 cents, reflecting a more than 100% increase year-over-year. Revenue estimates are set at $347.8 million, indicating a 10% year-over-year growth [1][8]. Earnings Performance - The company has a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 34.3% [2]. - However, the current model does not predict a definitive earnings beat for this quarter, as PATH has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [3][4]. Revenue Breakdown - The consensus estimate for license services revenues is $111 million, which represents a 19.1% decline year-over-year. In contrast, subscription revenues are expected to reach $227.1 million, showing a 9.7% increase year-over-year. Professional services and other revenues are estimated at $9.6 million, down 8.7% year-over-year [5][8]. Stock Performance - UiPath's stock has decreased by 13.7% over the past year, while its industry has surged by 39.6% and the Zacks S&P 500 Composite has increased by 15.5% [6]. - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 18.87X, which is lower than the industry average of 38.82X [10]. Strategic Partnerships - Partnerships with Microsoft and Amazon have significantly enhanced UiPath's credibility and market reach. Microsoft regards UiPath as its preferred enterprise automation platform, while Amazon has integrated UiPath with its AWS offerings [12]. Annual Recurring Revenue - In the second quarter of fiscal 2026, PATH reported a 6% year-over-year increase in total revenue, with annual recurring revenues (ARR) growing by 12% year-over-year, reaching $1.6 billion. This indicates effective subscription model performance and strong client loyalty [13]. Analyst Sentiment - There have been no changes in earnings per share estimates over the past 60 days, suggesting a neutral outlook from analysts regarding the company's near-term performance [14].

Core Insights - Both UiPath (PATH) and BlackSky Technology (BKSY) are innovative technology companies focused on automation and intelligence, with UiPath specializing in robotic process automation (RPA) and BlackSky in space-based intelligence and satellite imagery [1] Group 1: UiPath (PATH) - UiPath's growth is driven by its AI-driven enterprise automation platform, with a 6% year-over-year revenue growth and a 12% increase in annual recurring revenues in Q1 of fiscal 2026, indicating strong customer adoption [2][3] - The company has a dollar-based net retention rate of 108% and a 7.5% year-over-year growth in free cash flow, showcasing its growth trajectory and robust capital allocation with a $227.5 million share purchase program [3] - UiPath's extensive automation platform differentiates itself by integrating RPA with AI, which positions the company for sustainable growth as AI adoption accelerates [4] - The global market for RPA and enterprise automation is expected to grow at a CAGR of 43.9% from 2025 to 2030, with UiPath maintaining a leadership position through strong partnerships with Amazon, Microsoft, and Salesforce [5] Group 2: BlackSky Technology (BKSY) - BlackSky's financial performance is linked to advancements in satellite technology and AI-driven analytics, with $18 million in revenues from imagery and software analytical services in the June quarter, driven by Gen-3 satellites [7] - The company has an ambitious revenue outlook of $105-$130 million, supported by a contract backlog of $356 million, with 85% of contracts from international customers [8][9] - Despite securing a $24 million facility monitoring order from the National Geospatial-Intelligence Agency, BlackSky reported a net loss of $41.2 million, with a significant increase in investment costs and an 11% year-over-year decline in top line [11][12] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for UiPath's 2025 sales is $1.6 billion, reflecting an 8.5% year-over-year increase, with earnings expected to rise by 5.7% to 56 cents per share [12] - For BlackSky, the 2025 sales estimate is $117.7 million, indicating a 15.2% year-over-year growth, but the consensus for loss is projected at $3.05 per share, worsening from the previous year's loss [14] - UiPath is trading at a forward price/sales ratio of 3.71X, below its median of 4.42X, suggesting undervaluation, while BlackSky appears overvalued at 4.47X against its median of 2.5X [15] Group 4: Overall Verdict - Both companies present promising growth narratives driven by AI and next-gen technology, but UiPath's strong recurring revenues, efficient capital allocation, and more attractive valuation suggest a better growth outlook [17][18]

Core Insights - The integration of artificial intelligence (AI) is enhancing the robotics sector, providing greater precision, flexibility, and adaptability [1] - Investors are increasingly focusing on AI infrastructure through hyperscalers and semiconductor stocks, but robotics stocks may offer unique investment opportunities with large total addressable markets (TAMs) [2] Group 1: Intuitive Surgical - Intuitive Surgical is recognized as a pioneer in surgical robotics, with its da Vinci surgical system leading the market and having over 11,000 installations globally [4] - The company benefits from a significant services business, with annual recurring revenue (ARR) now constituting over 80% of total revenue [4] - The incorporation of AI into the da Vinci system enhances surgical precision and outcomes, aiming to shorten procedures [5] - Despite strong earnings, Intuitive Surgical's stock has declined, trading at approximately 74 times forward earnings, which is considered high for a medical stock [6][7] - The stock is currently trading below the consensus price target of $565.95, indicating a potential upside of more than 25% [7] Group 2: Symbotic - Symbotic focuses on warehouse robotics, creating autonomous systems that convert warehouses into AI-powered logistics hubs [10] - The partnership with Walmart provides a significant platform for scaling operations across retail and logistics [11] - Symbotic's robots outperform human labor in speed and accuracy, addressing challenges in the current labor-constrained supply chain [11] - The company is not yet profitable due to high capital expenses, leading to a short interest of over 29% in its stock [12] - Recent earnings showed negative earnings despite beating revenue expectations, which may deter some investors [13] Group 3: UiPath - UiPath is a leader in robotic process automation (RPA), focusing on software that streamlines repetitive digital processes [17] - The introduction of generative AI into its software allows for more adaptive and intelligent workflows [18] - UiPath has a strong customer retention rate of 108%, but faces challenges in acquiring new customers in a high-interest-rate environment [19] - The crowded market poses risks for UiPath, although there are signs of oversold conditions in its stock [20]

Core Insights - UiPath (PATH) is leveraging its AI-powered enterprise automation platform as a key growth driver for 2025 [1] Financial Performance - PATH reported revenues of $357 million, reflecting a 6% year-over-year increase, and an annual recurring revenue (ARR) of $1.69 billion, which is a 12% increase due to strong customer adoption of AI automation solutions [2][8] - The company has a dollar-based net retention rate of 108% and is experiencing rising free cash flow, indicating robust growth prospects [3][8] - A $227.5 million share repurchase program has been initiated, demonstrating the company's confidence in long-term shareholder value creation [3][8] Competitive Landscape - Comparable peers in the AI sector include Palantir Technologies (PLTR) and C3.ai (AI), both of which emphasize AI as a core driver for business transformation and revenue growth [4][5] - Palantir focuses on data integration solutions, while C3.ai specializes in AI software across various sectors, both showcasing significant recurring revenue growth [4][5] Market Positioning - UiPath differentiates itself with a comprehensive automation platform that integrates robotic process automation with AI, offering a more holistic approach to streamlining complex workflows compared to AI-only players [5] - The acceleration of AI adoption positions UiPath favorably for continued automation revenue growth through ongoing product innovation and customer expansion [6] Valuation Metrics - PATH's stock has declined by 14% year-to-date, contrasting with the industry's growth of 18% [7] - The company trades at a forward price-to-earnings ratio of 18.65, significantly below the industry average of 38.26, indicating potential undervaluation [9]

Core Insights - UiPath Inc. (PATH) shares have decreased by 11% over the past three months, while the industry has seen a 15% increase, prompting an analysis of whether the stock presents a buying opportunity in the current market [1][8] Group 1: Market Position and Growth - UiPath is a significant player in the rapidly growing Robotic Process Automation (RPA) market, which is expected to expand substantially in the coming years, driven by increasing demand for AI-driven solutions [2] - Strategic alliances with major technology companies such as Microsoft, Amazon, and Salesforce enhance UiPath's credibility and integrate its offerings into broader enterprise ecosystems [3] Group 2: Financial Performance - In the first quarter of fiscal 2026, UiPath reported a 6% year-over-year revenue increase to $357 million, with annual recurring revenues rising by 12% to $1.69 billion, indicating strong customer loyalty and a robust subscription-based business model [4][8] - The company holds $1.6 billion in cash with no debt, providing financial flexibility to support growth initiatives and strategic investments [9][10] Group 3: Analyst Sentiment - Analyst sentiment for UiPath has remained muted over the past 60 days, with EPS estimates unchanged at 8 cents for the upcoming quarter and 56 cents for fiscal 2026, reflecting a cautious outlook [11] - The lack of upward or downward revisions in analyst estimates suggests a stable but uncertain near-term performance for the company [12] Group 4: Strategic Outlook - Despite strong industry tailwinds, solid partnerships, and a strong balance sheet, the recent underperformance relative to the industry indicates potential near-term challenges for UiPath [13] - The company appears to be in a "wait and watch" phase until clearer growth catalysts emerge, balancing its strong market position with current market dynamics [13]

Core Insights - UiPath (PATH) is positioned prominently in the rapidly growing Robotic Process Automation (RPA) sector, which is expected to see significant growth in the coming years, driven by increasing demand for AI-powered solutions across various industries [1][4] Group 1: Strategic Alliances - A key factor in UiPath's success is its strategic alliances with leading technology firms such as Microsoft (MSFT), Amazon (AMZN), and Salesforce (CRM), which enhance its market reach and platform capabilities [2][4] - These partnerships strengthen UiPath's market credibility and enable deeper integration of its solutions into enterprise ecosystems powered by Microsoft Azure, Amazon Web Services (AWS), and Salesforce Cloud [2] Group 2: Financial Performance - UiPath reported a 6% year-over-year increase in revenues for Q1 fiscal 2026, reaching $357 million, indicating strong financial performance [3][5] - The company's annual recurring revenue rose by 12% to $1.69 billion, showcasing the resilience of its subscription-based business model and customer loyalty [3][5] Group 3: Market Position - With a strong international presence and an extensive partner network, particularly with major technology firms, UiPath is well-equipped to maintain its leadership in the dynamic RPA and enterprise automation markets [4]