BMO Capital Lowers UiPath (PATH) PT to $12.50 After FQ2 2026 Earnings, Cites ARR

Core Insights - UiPath Inc. is recognized as a strong AI stock by analysts, although BMO Capital has lowered its price target to $12.50 from $15.50 while maintaining a Market Perform rating following the release of its FQ2 2026 earnings report [1][3] Financial Performance - The company reported revenue of $362 million for the quarter, reflecting a 14% year-over-year increase [2] - Annual Recurring Revenue (ARR) reached $1.723 billion, an 11% year-over-year increase, with net new ARR of $31 million [2] - Cloud ARR grew by over 25% to exceed $1.08 billion, indicating strong growth in this segment [2] Customer Metrics - UiPath has approximately 10,820 customers, with a dollar-based gross retention rate of 98% and a dollar-based net retention rate of 108% [2] Product Development and Market Position - The company is experiencing strong momentum in its AI and agentic solutions, with 450 customers actively using these technologies since their launch in May 2025 [3] - These new solutions are contributing to larger deals and increased deal sizes, although the CEO noted that their adoption is still in early phases and is not expected to significantly impact the top line in FY2026 [3] Business Overview - UiPath provides an end-to-end automation platform that includes a variety of robotic process automation (RPA) solutions, primarily operating in the US, Romania, the UK, the Netherlands, and other international markets [4]