UiPath (PATH) AI Stock Analysis

• Market Cap: $5.94B
• Dividend Yield: N/A
• Average Volume (3M): 27.16M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.38
• Revenue Growth: 10.05%
• EPS Growth: N/A
• Country: US
• Employees: 3,868
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.16
• Shares Outstanding: 460,443,700
• 10 Day Avg. Volume: 25,997,736
• 30 Day Avg. Volume: 27,159,199
• PEG Ratio: 5.76
• Price to Book (P/B): 4.31
• Price to Sales (P/S): 5.57
• P/FCF Ratio: 26.05
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 3.04
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 182.30
• 1Y Price Target: $16.00
• Price Target Upside: 57.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $11.00 ▲(8.16% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is supported primarily by improving fundamentals highlighted on the earnings call (first GAAP profitable quarter and raised guidance) and solid underlying financial quality (strong cash flow and low leverage). It is held back by weak technicals (bearish trend despite oversold signals) and a moderately demanding valuation with no dividend support.

Positive Factors

Recurring revenue / ARR growth

Sustained ARR growth (11% YoY to $1.782B) from a subscription model gives predictable revenue and high renewal visibility. Recurring licensing plus net new ARR ($59M) supports durable cash flow and easier planning for multi-quarter product investments and upsell opportunities.

Strong cash generation and low leverage

Very strong free cash flow growth (TTM +61.7%) and high FCF-to-net-income (0.93) combined with minimal leverage (D/E 0.044) give financial flexibility. This reduces refinancing risk, funds organic R&D and partnerships, and supports multi-year scaling without balance-sheet strain.

High gross margins and ecosystem adoption

Very high gross margins (82.9%) and clear platform adoption (950 customers building agents, 365k processes) indicate strong unit economics and network effects. Combined with major integrations/partnerships, this supports sustainable margin upside and competitive positioning long-term.

Negative Factors

Weak operating profitability

Despite GAAP profitability in a quarter, overall operating profitability remains weak with very low net margin and negative EBIT/EBITDA. This constrains reinvestment ability, reduces cushion for cyclical slowdowns, and implies the company must sustain high growth or improve operating leverage to reach durable margins.

Lower-end customer attrition weakens retention

Attrition among lower-end customers is pressuring dollar-based net retention and net new ARR. Persistent churn in the lower tier requires higher acquisition or retention spend, lowering long-term ARR efficiency and making top-line growth more dependent on larger account expansion.

AI monetization remains nascent

While agentic AI products and partnerships exist, management expects little material revenue from AI in fiscal 2026. Delayed monetization means investments in AI may take longer to translate into durable revenue, raising execution risk for growth initiatives tied to AI capabilities.

UiPath Business Overview & Revenue Model

Company Description

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform combines artificial intelligence with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, which enables users to discover, analyze, and identify processes to automate in a centralized portal; offers low-code development environments that allows users in an organization to create attended and unattended automations without any prior knowledge of coding; deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications; offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; allows customers to manage long running processes that orchestrate work between robots and humans; and enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards. In addition, the company provides maintenance and support for its software, as well as professional services, such as training and implementation services to facilitate the adoption of its platform. It serves banking, healthcare, financial services, and government entities. UiPath Inc. was founded in 2005 and is headquartered in New York, New York.

How the Company Makes Money

UiPath generates revenue primarily through a subscription-based model, offering its software solutions on a yearly basis. Key revenue streams include licensing fees for its RPA software, cloud services, and additional offerings such as training and support services. The company also benefits from significant partnerships with major cloud providers and technology firms, which enhance its market reach and integration capabilities. Upselling and cross-selling additional features and services to existing customers further contribute to its earnings.

UiPath Financial Statement Overview

Summary

Strong cash generation (TTM free cash flow growth 61.7% and high FCF-to-net income of 0.93) and a low-leverage balance sheet (debt-to-equity 0.044) support financial strength. This is tempered by weak profitability metrics, including low net margin (1.35%) and negative EBIT/EBITDA margins.

Income Statement

UiPath has shown a positive trend in revenue growth, with a TTM growth rate of 3.77%. The gross profit margin remains strong at 82.86%, indicating efficient cost management. However, the net profit margin is relatively low at 1.35%, and the EBIT and EBITDA margins are negative, suggesting challenges in operational profitability.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.044, indicating low leverage. The return on equity is modest at 1.16%, reflecting limited profitability on shareholders' equity. The equity ratio is strong, suggesting financial stability.

Cash Flow

UiPath exhibits robust cash flow management with a significant free cash flow growth rate of 61.7% in the TTM. The operating cash flow to net income ratio is 0.45, and the free cash flow to net income ratio is high at 0.93, indicating strong cash generation relative to net income.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	1.55B	1.43B	1.31B	1.06B	892.25M	607.64M
Gross Profit	1.29B	1.18B	1.11B	878.53M	723.38M	541.79M
EBITDA	25.94M	-145.34M	-141.70M	-348.28M	-486.24M	-90.72M
Net Income	229.66M	-73.69M	-89.88M	-328.35M	-525.59M	-92.39M
Balance Sheet
Total Assets	2.90B	2.87B	2.95B	2.74B	2.57B	866.46M
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.63B	1.88B	1.76B	1.87B	460.52M
Total Debt	72.02M	77.82M	67.07M	63.44M	51.40M	20.08M
Total Liabilities	971.36M	1.02B	938.64M	815.05M	650.53M	448.20M
Stockholders Equity	1.92B	1.85B	2.02B	1.92B	1.92B	418.26M
Cash Flow
Free Cash Flow	311.55M	305.64M	291.74M	-33.80M	-68.02M	25.98M
Operating Cash Flow	334.94M	320.56M	299.08M	-9.98M	-54.96M	29.18M
Investing Cash Flow	3.49M	-45.50M	-439.57M	-289.14M	-35.44M	-125.99M
Financing Cash Flow	-374.96M	-450.51M	-196.90M	-60.67M	1.47B	250.42M

UiPath Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Negative. The current price of 10.17 is below the 20-day moving average (MA) of 12.28, below the 50-day MA of 14.66, and below the 200-day MA of 13.53, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 27.06 is Positive, neither overbought nor oversold. The STOCH value of 10.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PATH.

UiPath Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	75 Outperform	$29.55B	-403.50	-3.23%	―	20.93%	68.47%
ACIW	72 Outperform	$4.18B	16.48	18.58%	―	7.01%	17.48%
PATH	69 Neutral	$5.94B	26.44	12.56%	―	10.05%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CFLT	61 Neutral	$10.97B	―	-27.72%	―	21.58%	18.88%
S	57 Neutral	$4.54B	―	-25.79%	―	24.09%	-34.25%
VRNS	54 Neutral	$3.02B	-22.64	-24.53%	―	11.37%	-34.44%