UiPath (PATH) AI Stock Analysis

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UiPath

(NYSE:PATH)

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Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

$14.50

▲(17.69% Upside)

UiPath's overall stock score reflects strong financial performance and bullish technical indicators, tempered by high valuation concerns. The company's strategic focus on AI and cloud solutions is driving growth, but challenges in cash flow and existing customer ARR growth need attention. The positive earnings call further supports the stock's potential, despite macroeconomic headwinds.

Positive Factors

Revenue Growth

The 14% YoY revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cloud ARR Growth

Significant growth in cloud ARR reflects successful adoption of cloud solutions, enhancing recurring revenue and future stability.

Product Innovation

AgenTeq's positive reception and customer engagement highlight UiPath's innovation, strengthening its competitive edge in automation.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth can limit investment capacity and operational flexibility, affecting long-term financial health.

Existing Customer ARR Growth

Decreased ARR growth from existing customers suggests challenges in customer retention and upselling, impacting future revenue stability.

Macroeconomic Environment

Variable macroeconomic conditions can lead to unpredictable revenue streams and require strategic adjustments to maintain growth.

UiPath (PATH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.54B

Dividend YieldN/A

Average Volume (3M)12.70M

Price to Earnings (P/E)345.1

Beta (1Y)1.63

Revenue Growth8.25%

EPS GrowthN/A

CountryUS

Employees3,868

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.15

Shares Outstanding453,568,900

10 Day Avg. Volume12,844,345

30 Day Avg. Volume12,702,693

Financial Highlights & Ratios

PEG Ratio5.76

Price to Book (P/B)4.31

Price to Sales (P/S)5.57

P/FCF Ratio26.05

Enterprise Value/Market Cap0.77

Enterprise Value/Revenue3.35

Enterprise Value/Gross Profit4.04

Enterprise Value/Ebitda-167.00

Forecast

1Y Price Target

$13.36

Price Target Upside8.44% Upside

Rating ConsensusHold

Number of Analyst Covering18

UiPath Business Overview & Revenue Model

Company DescriptionUiPath 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 MoneyUiPath generates revenue primarily through a subscription-based model, offering licenses for its software products, including RPA tools and cloud services. The company has different pricing tiers based on the features and number of robots required by a customer. Key revenue streams include software licenses, professional services for implementation and support, and cloud-based offerings. Additionally, UiPath has established significant partnerships with major technology providers, which helps expand its market reach and drive sales. The increasing demand for automation solutions in various industries also contributes positively to its earnings.

UiPath Key Performance Indicators (KPIs)

Any

Dollar-Based Net Retention Rate

Dollar-Based Net Retention Rate
Measures how much revenue growth or shrinkage comes from existing customers, indicating customer satisfaction and the company's ability to upsell or retain clients.

Chart InsightsUiPath's Dollar-Based Net Retention Rate has been on a downward trend, reaching 108% by early 2025, reflecting challenges in customer retention. Despite this, the company reported strong financial performance and a successful launch of its agentic automation platform, which has received positive customer feedback and industry recognition. While macroeconomic uncertainties and public sector challenges persist, UiPath's strategic initiatives and partnerships are expected to drive significant revenue growth in the coming years, potentially reversing the retention rate decline.

Data provided by:

Main Street Data

UiPath Earnings Call Summary

Earnings Call Date:Sep 04, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:Dec 04, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, successful product launches, and recognition in the industry. However, challenges remain in the macroeconomic environment and ARR growth from existing customers.

Q2-2026 Updates

Positive Updates

Exceeding Guidance Across Key Metrics

UiPath exceeded the high end of their guidance across all key financial metrics with a second-quarter ARR growth of 11% to $1.723 billion and a revenue increase of 14% year over year to $362 million.

Strong Growth in Cloud ARR

Cloud ARR increased by more than 25%, reaching over $1.080 billion, showing significant growth in cloud-based offerings.

Introduction of AgenTeq and Positive Reception

The launch of the AgenTeq automation platform has been well-received, with 450 customers actively developing agents, and significant deals driven by the combination of AgenTeq and automation.

Non-GAAP Operating Income Improvement

Non-GAAP operating income increased to $62 million, representing a 17% margin and an improvement of more than 2,500 basis points year over year.

Recognition in Gartner Magic Quadrant

UiPath was recognized for the seventh consecutive year as a leader in the 2025 Gartner Magic Quadrant for Robotic Process Automation.

Strong Public Sector Performance

Public sector performance is stabilizing, with significant wins such as the United States Navy expanding their IDP initiative.

Negative Updates

Variable Macroeconomic Environment

The macroeconomic environment remains variable, affecting customer purchasing behavior and requiring a prudent outlook.

ARR Growth from Existing Customers

Existing customer ARR growth has been down year over year, with a need for stabilization and improvement in this area.

Company Guidance

In the second quarter of fiscal year 2026, UiPath exceeded the high end of its guidance across key financial metrics, showcasing strong growth and operational efficiency. The company reported a 14% increase in revenue to $362 million and an 11% growth in Annual Recurring Revenue (ARR) to $1.723 billion, driven by $31 million in net new ARR. Notably, UiPath's non-GAAP operating income rose to $62 million, representing a 17% margin and an improvement of over 2,500 basis points year over year. The company highlighted the positive impact of its AI and AgenTeq solutions, which are accelerating deal sizes faster than traditional automation engagements. UiPath also reported a significant increase in cloud ARR, which exceeded $1.080 billion, reflecting a growth of more than 25%. These results underscore the company's strategic focus on automation, AI integration, and its ability to drive commercial momentum and deliver tangible ROI for its customers.

UiPath Financial Statement Overview

Summary

UiPath demonstrates a promising shift towards profitability with improving revenue and net profit margins. The balance sheet is robust with low leverage, but cash flow challenges persist, particularly in free cash flow growth. Overall, the company is on a positive trajectory but needs to address operational inefficiencies and cash flow management.

Income Statement

Positive

UiPath's income statement shows a positive trajectory with a TTM revenue growth rate of 3.13% and a net profit margin of 1.35%, indicating a shift towards profitability. However, the EBIT and EBITDA margins remain negative, suggesting ongoing operational challenges. The gross profit margin is strong at 82.86%, reflecting efficient cost management.

Balance Sheet

Positive

The balance sheet is solid with a low debt-to-equity ratio of 0.044, indicating low leverage and financial stability. The return on equity is modest at 1.16%, showing room for improvement in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Positive

Cash flow analysis reveals a decline in free cash flow growth, down by 107.7% TTM, which is a concern. However, the operating cash flow to net income ratio of 0.45 indicates adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.93, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.50B	1.43B	1.31B	1.06B	892.25M	607.64M
Gross Profit	1.24B	1.18B	1.11B	878.53M	723.38M	541.79M
EBITDA	-30.00M	-145.34M	-141.70M	-348.28M	-486.24M	-90.72M
Net Income	20.17M	-73.69M	-89.88M	-328.35M	-525.59M	-92.39M
Balance Sheet
Total Assets	2.59B	2.87B	2.95B	2.74B	2.57B	866.46M
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.63B	1.88B	1.76B	1.87B	460.52M
Total Debt	72.62M	77.82M	67.07M	63.44M	51.40M	20.08M
Total Liabilities	926.61M	1.02B	938.64M	815.05M	650.53M	448.20M
Stockholders Equity	1.67B	1.85B	2.02B	1.92B	1.92B	418.26M
Cash Flow
Free Cash Flow	309.64M	305.64M	291.74M	-33.80M	-68.02M	25.98M
Operating Cash Flow	334.74M	320.56M	299.08M	-9.98M	-54.96M	29.18M
Investing Cash Flow	-120.19M	-45.50M	-439.57M	-289.14M	-35.44M	-125.99M
Financing Cash Flow	-536.43M	-450.51M	-196.90M	-60.67M	1.47B	250.42M

UiPath Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.32

Price Trends

50DMA

11.55

Positive

100DMA

12.13

Positive

200DMA

12.34

Negative

Market Momentum

MACD

0.27

Negative

RSI

54.92

Neutral

STOCH

53.54

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Positive. The current price of 12.32 is above the 20-day moving average (MA) of 11.70, above the 50-day MA of 11.55, and below the 200-day MA of 12.34, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 53.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PATH.

UiPath Risk Analysis

UiPath disclosed 63 risk factors in its most recent earnings report. UiPath reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

UiPath Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIW	74 Outperform	5.39B	21.89	18.02%	―	11.22%	40.85%
PATH	73 Outperform	$6.54B	345.10	1.15%	―	8.25%	―
MDB	73 Outperform	25.65B	-318.70	-2.67%	―	21.90%	67.81%
VRNS	72 Outperform	6.51B	-63.97	-30.14%	―	14.29%	-14.42%
S	68 Neutral	6.07B	-13.74	-28.48%	―	25.39%	-42.90%
CFLT	59 Neutral	6.81B	-20.54	-29.31%	―	23.02%	21.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

PATH

UiPath

12.14

-0.66

-5.16%

ACIW

ACI Worldwide

51.71

1.48

2.95%

VRNS

Varonis Systems

58.61

2.38

4.23%

MDB

MongoDB

315.32

45.79

16.99%

CFLT

Confluent

19.25

-0.45

-2.28%

SentinelOne

18.14

-5.94

-24.67%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025