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{\"0\":\"PATH gains momentum after strong Q2 earnings and raised full-year guidance.\",\"1\":\"Analyst estimates rise as ARR growth and AI partnerships boost long-term outlook.\",\"2\":\"Technicals signal bullish setup with Golden Cross potential and upside targets.\"}
UiPath (PATH - Free Report) is a Zacks Rank #1 (Strong Buy) that offers an end-to-end platform for automation, combining Robotic Process Automation (RPA) solutions for digital business operations.
The stock continues to trade well below the post-IPO highs it made back in 2021, but the bulls have started to make a push after positive earnings momentum and a handful of partnership announcements.
With AI stocks surging in 2025, UiPath looks poised to join the next wave of breakout winners.
About the Company
The company is headquartered in New York City and employs over 4,000 people. PATH has a market cap of $9 billion and a Forward PE of 26
The stock has Zacks Style Scores of “B” in Growth, “D” in Momentum and “F” in Value.
UiPath offers a robotic process automation (RPA) platform that uses artificial intelligence to automate repetitive and rule-based tasks while streamlining operations. Its software robots mimic human actions by navigating systems, entering data, and completing routine workflows with greater speed, accuracy, and efficiency, allowing employees to focus on higher value work.
Q2 Earnings
UiPath posted another solid quarter, delivering strong results and raising full-year guidance as platform usage and customer adoption accelerated.
The company reported an 87% EPS beat, with adjusted EPS of $0.15, topping the $0.08 consensus. Revenue was up 14% year-over-year and Annual Recurring Revenue (ARR) grew 11% to $1.72 billion. Net new ARR was $31 million, while cloud ARR surged 25% to $1.08 billion. Non-GAAP operating income reached $62 million, a 17% margin, up 2,500 basis points from last year, reflecting disciplined cost management and a 6% reduction in operating expenses.
UiPath closed the quarter with $1.5 billion in cash, no debt, and $45 million in adjusted free cash flow, also repurchasing 8.3 million shares at an average price of $12.10.
Looking ahead, UiPath expects third quarter fiscal 2026 revenue between $390 million and $395 million, annual recurring revenue (ARR) of $1.77 to $1.78 billion, and non-GAAP operating income of about $70 million. The company also raised its full year outlook across all key metrics, projecting revenue of $1.57 to $1.58 billion, ARR of $1.83 to $1.84 billion, non-GAAP operating income of $340 million (up from $305 million previously), adjusted free cash flow of roughly $370 million, and non-GAAP gross margin close to 85 percent.
CEO Daniel Dines credited the strong results to better execution and the growing momentum of UiPath’s agentic AI capabilities, noting that automation and agentic intelligence work best together to help customers coordinate agents, robots, and people to achieve measurable outcomes.
Estimates Rising
Looking at the numbers, estimates are headed higher across most time frames. The current quarter saw a slight tick higher, while next quarter is flat. But when we look at the big picture, the needle starts to move.
Over the last 60 days, estimates have moved 18% higher for the current year, going from $0.55 to $0.65.
Looking at next year, we see another 18% move to the upside, going from $0.61 to $0.72.
Fusion 25
Shares of UiPath surged after its Fusion 25 user conference in Las Vegas, where the company unveiled a slate of agentic AI partnerships and product updates. UiPath announced collaborations with Snowflake, NVIDIA, OpenAI, and Microsoft to deepen its integration of automation with generative AI and data intelligence.
These deals expand UiPath’s reach across data analytics, cloud, and enterprise workflows, helping customers deploy AI agents faster and automate complex, high-trust processes like fraud detection and healthcare management.
The announcements sparked renewed investor enthusiasm, driving PATH shares from under $13 to nearly $19 in just over a week.
The Technical Take
The stock has cleared all its moving averages, and the 50-day (Currently at $12) is looking to cross the 200-day moving average at $12.35. This would signal a “Golden Cross” which would bring more eyeballs to PATH.
Fibonacci levels can give us upside targets, which is about 130% from current levels. The 61.8% resistance level, which can be found by drawing from 2024 highs to 2025 lows, is $21.The target is the 161.8% extension which is just under $40.
In Summary
UiPath is shaping up as a turnaround with significant upside. Rising profitability, accelerating ARR growth, and partnerships with Microsoft, NVIDIA, Snowflake, and OpenAI provide strong catalysts.
After several quiet years, the company is evolving beyond its automation roots into a comprehensive AI platform. This is a shift that could reignite growth, expand margins, and spark a fresh wave of investor enthusiasm heading into 2026.
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Bull of the Day: UiPath (PATH)
Key Takeaways
UiPath (PATH - Free Report) is a Zacks Rank #1 (Strong Buy) that offers an end-to-end platform for automation, combining Robotic Process Automation (RPA) solutions for digital business operations.
The stock continues to trade well below the post-IPO highs it made back in 2021, but the bulls have started to make a push after positive earnings momentum and a handful of partnership announcements.
With AI stocks surging in 2025, UiPath looks poised to join the next wave of breakout winners.
About the Company
The company is headquartered in New York City and employs over 4,000 people. PATH has a market cap of $9 billion and a Forward PE of 26
The stock has Zacks Style Scores of “B” in Growth, “D” in Momentum and “F” in Value.
UiPath offers a robotic process automation (RPA) platform that uses artificial intelligence to automate repetitive and rule-based tasks while streamlining operations. Its software robots mimic human actions by navigating systems, entering data, and completing routine workflows with greater speed, accuracy, and efficiency, allowing employees to focus on higher value work.
Q2 Earnings
UiPath posted another solid quarter, delivering strong results and raising full-year guidance as platform usage and customer adoption accelerated.
The company reported an 87% EPS beat, with adjusted EPS of $0.15, topping the $0.08 consensus. Revenue was up 14% year-over-year and Annual Recurring Revenue (ARR) grew 11% to $1.72 billion. Net new ARR was $31 million, while cloud ARR surged 25% to $1.08 billion. Non-GAAP operating income reached $62 million, a 17% margin, up 2,500 basis points from last year, reflecting disciplined cost management and a 6% reduction in operating expenses.
UiPath, Inc. Price and EPS Surprise
UiPath, Inc. price-eps-surprise | UiPath, Inc. Quote
UiPath closed the quarter with $1.5 billion in cash, no debt, and $45 million in adjusted free cash flow, also repurchasing 8.3 million shares at an average price of $12.10.
Looking ahead, UiPath expects third quarter fiscal 2026 revenue between $390 million and $395 million, annual recurring revenue (ARR) of $1.77 to $1.78 billion, and non-GAAP operating income of about $70 million. The company also raised its full year outlook across all key metrics, projecting revenue of $1.57 to $1.58 billion, ARR of $1.83 to $1.84 billion, non-GAAP operating income of $340 million (up from $305 million previously), adjusted free cash flow of roughly $370 million, and non-GAAP gross margin close to 85 percent.
CEO Daniel Dines credited the strong results to better execution and the growing momentum of UiPath’s agentic AI capabilities, noting that automation and agentic intelligence work best together to help customers coordinate agents, robots, and people to achieve measurable outcomes.
Estimates Rising
Looking at the numbers, estimates are headed higher across most time frames. The current quarter saw a slight tick higher, while next quarter is flat. But when we look at the big picture, the needle starts to move.
Over the last 60 days, estimates have moved 18% higher for the current year, going from $0.55 to $0.65.
Looking at next year, we see another 18% move to the upside, going from $0.61 to $0.72.
Fusion 25
Shares of UiPath surged after its Fusion 25 user conference in Las Vegas, where the company unveiled a slate of agentic AI partnerships and product updates. UiPath announced collaborations with Snowflake, NVIDIA, OpenAI, and Microsoft to deepen its integration of automation with generative AI and data intelligence.
These deals expand UiPath’s reach across data analytics, cloud, and enterprise workflows, helping customers deploy AI agents faster and automate complex, high-trust processes like fraud detection and healthcare management.
The announcements sparked renewed investor enthusiasm, driving PATH shares from under $13 to nearly $19 in just over a week.
The Technical Take
The stock has cleared all its moving averages, and the 50-day (Currently at $12) is looking to cross the 200-day moving average at $12.35. This would signal a “Golden Cross” which would bring more eyeballs to PATH.
Fibonacci levels can give us upside targets, which is about 130% from current levels. The 61.8% resistance level, which can be found by drawing from 2024 highs to 2025 lows, is $21.The target is the 161.8% extension which is just under $40.
In Summary
UiPath is shaping up as a turnaround with significant upside. Rising profitability, accelerating ARR growth, and partnerships with Microsoft, NVIDIA, Snowflake, and OpenAI provide strong catalysts.
After several quiet years, the company is evolving beyond its automation roots into a comprehensive AI platform. This is a shift that could reignite growth, expand margins, and spark a fresh wave of investor enthusiasm heading into 2026.