Core Insights - UiPath Inc. has been identified as a promising AI stock under $20, with Morgan Stanley raising its price target to $19 from $15 following a strong earnings report [1][3] Financial Performance - In FQ3 2026, UiPath reported its first-ever GAAP profitable third quarter, achieving a GAAP operating income of $13 million [2] - Total revenue for the quarter grew 16% year-over-year to $411 million, surpassing previous guidance [2] - Annual Recurring Revenue (ARR) reached $1.78 billion, an 11% increase from the prior year, with $59 million in net new ARR during the quarter [2] - Customer retention metrics remained strong, with a dollar-based gross retention rate of 98% and a net retention rate of 107% [2] Future Projections - For FQ4 2026, UiPath expects revenue to be between $462 million and $467 million, accounting for an estimated $3 million headwind from currency fluctuations [4] - ARR is projected to reach between $1.844 billion and $1.849 billion by January 31, 2026 [4] Strategic Developments - UiPath is transitioning from traditional Robotic Process Automation (RPA) to an Agentic AI platform, integrating new technologies with major companies like OpenAI, Microsoft, NVIDIA, Google, and Snowflake [3] - A significant development includes the integration with Microsoft Azure AI Foundry and a collaboration with OpenAI to create a ChatGPT connector for enterprise workflows [3] - UiPath has been recognized by Gartner as a leader in both Intelligent Document Processing and AI-augmented software testing, supporting its strategic direction [3]