UiPath: Mixed Earnings, EPS Outperforms

Core Insights - UiPath delivered strong earnings with an EPS of $0.26, exceeding analyst estimates of $0.20 by 30%, while total revenue reached $424 million, slightly missing the consensus forecast of $425 million [2][9] - The overall assessment of the quarter is positive as the company met its own revenue guidance and demonstrated strong earnings performance, despite a sharp decline in stock price due to modest next-year guidance targets [2][3] Financial Performance - Q4 2025 revenue was $424 million, a 4.5% increase year-over-year from $405 million in Q4 2024 [4] - Non-GAAP EPS was $0.26, an 18% increase from $0.22 in Q4 2024 [4] - Annual Recurring Revenue (ARR) reached $1.666 billion, a 14% increase from $1.461 billion in the previous year [4] - Non-GAAP Operating Income was $134 million, reflecting a 21.3% increase from $110.5 million in Q4 2024 [4] Business Strategy - UiPath focuses on AI advancements and strategic partnerships to strengthen its market position, with key success levers including AI-powered tool development and market expansion [6] - New AI products like Autopilot and Agent Builder were introduced, indicating a significant innovation year for the company [7] - Acquisitions, such as Peak AI Limited, enhance the company's capabilities with specialized solutions, while partnerships with firms like Deloitte expand its market reach [8] Future Outlook - For fiscal 2026, UiPath projects revenue between $1.525 billion and $1.530 billion, indicating approximately 6.8% full-year revenue growth, down from 9.3% in fiscal year 2025 [10] - The planned non-GAAP operating income is approximately $270 million, suggesting a 12% year-over-year growth [10] - Focus areas include stabilizing new ARR dollars and accelerating free cash flow growth [10]