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UiPath (PATH)
NYSE:PATH
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UiPath
(NYSE:PATH)
Rating:71Outperform
Price Target:
$14.00
▲(5.90%Upside)
Positive Factors
Financial Performance
UiPath reported solid first-quarter results that outperformed consensus estimates on all key metrics.
Partnerships
UiPath expanded its partnership with Microsoft through a new bidirectional integration with Microsoft Copilot Studio, showing solid progress against partner initiatives.
Product Launch
The launch of the Agentic Automation Platform is regarded as one of the most important and successful product launches in the firm's history.
Negative Factors
Economic Concerns
Concerns about inflation and interest rates influence the Market Perform rating, suggesting challenges in multiple expansion for long duration cash flow assets like UiPath.
Financial Metrics
Continued declines in key metrics including NRR, which dropped to 108% in the quarter, lead to a cautious stance until growth stabilizes.
Market Competition
Sentiment on stock is low, with little perceived chance of success competing in the agentic arena vs. newer peers like OpenAI and Anthropic.
UiPath (PATH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.07B
Dividend YieldN/A
Average Volume (3M)11.55M
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth7.21%
EPS Growth23.13%
CountryUS
Employees3,868
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.11
Shares Outstanding457,586,100
10 Day Avg. Volume18,280,038
30 Day Avg. Volume11,546,019
Financial Highlights & Ratios
PEG Ratio5.76
Price to Book (P/B)4.31
Price to Sales (P/S)0.00
P/FCF Ratio26.05
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit13.25
Enterprise Value/Ebitda-20.03
Forecast
1Y Price Target
$13.85Price Target Upside4.77% Upside
Rating ConsensusHold
Number of Analyst Covering21
UiPath Business Overview & Revenue Model
Company DescriptionUiPath (PATH) is a leading global software company specializing in robotic process automation (RPA). The company provides a comprehensive automation platform that enables organizations to efficiently automate repetitive tasks, enhance productivity, and improve operational efficiency. UiPath's products and services cater to a wide range of industries, including finance, healthcare, manufacturing, and telecommunications, offering solutions that integrate seamlessly with existing systems and applications.
How the Company Makes MoneyUiPath generates revenue primarily through the sale of software licenses for its RPA platform. The company's revenue model includes both perpetual licenses, where customers pay a one-time fee, and subscription licenses, which provide a recurring revenue stream. Additionally, UiPath offers maintenance and support services, providing ongoing technical assistance and updates to its clients. The company also earns revenue from professional services, such as consulting and training, which help customers implement and optimize their automation solutions. Strategic partnerships with technology vendors and system integrators further expand UiPath's market reach and contribute to its revenue growth.
UiPath Key Performance Indicators (KPIs)
Any
Annual Renewal Run Rate
Shows the expected recurring revenue from renewals over the next year, reflecting customer loyalty and the stability of the company's revenue stream.
Shows the expected recurring revenue from renewals over the next year, reflecting customer loyalty and the stability of the company's revenue stream.
Data provided by:
Main Street Data
Main Street DataUiPath Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2026)
| % Change Since: 2.16%|
Next Earnings Date:Sep 09, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in revenue and ARR growth, successful product launches, and strategic partnerships. However, challenges such as a variable macroeconomic environment and public sector budgetary pressures were noted. Overall, the sentiment was positive, with strong financial performance and promising future prospects.Q1-2026 Updates
Positive Updates
Revenue and ARR Growth
UiPath reported first-quarter revenue of $357 million and ended the quarter with ARR of $1.693 billion, marking a 12% increase year over year.
Reduction in GAAP Operating Loss
The GAAP operating loss improved significantly to $16 million from $49 million in the prior year.
Non-GAAP Operating Income and Margin Improvement
Non-GAAP operating income was $70 million, representing a 20% margin, an improvement of 450 basis points year over year.
Successful Product Launches
The launch of the agentic automation platform was highlighted as one of the most successful product introductions in UiPath's history, with strong early demand.
Strategic Partnerships and Expansions
UiPath announced a strategic AI partnership with Google Cloud and expanded its partnership with Deloitte, indicating strong industry collaborations.
Share Repurchase Program
UiPath repurchased 21.9 million shares of its Class A common stock, reflecting a commitment to delivering value to shareholders.
Negative Updates
Variable Macroeconomic Environment
The macroeconomic environment remains variable and uncertain, impacting customer decision-making processes.
Public Sector Challenges
While there is enthusiasm for agentic automation in the public sector, budgetary pressures and procurement processes continue to affect performance.
Slight Decline in Net Retention Rate
The dollar-based net retention rate was 108%, slightly down from previous levels, reflecting some pressure in customer expansion.
Company Guidance
During the UiPath First Quarter 2026 Earnings Conference Call, management provided guidance reflecting strong financial performance and strategic advancements. For the second fiscal quarter of 2026, UiPath anticipates revenue between $345 million to $350 million and ARR ranging from $1.715 billion to $1.720 billion. They project a non-GAAP operating income of approximately $40 million. For the full fiscal year 2026, revenue is expected to be between $1.549 billion to $1.554 billion, ARR between $1.820 billion to $1.825 billion, and non-GAAP operating income around $305 million. Additionally, the company forecasts a non-GAAP adjusted free cash flow of about $370 million for the year, maintaining a non-GAAP gross margin of approximately 85%. The guidance reflects UiPath's focus on expanding its agentic automation platform and innovative product offerings, though the company remains cautious due to ongoing macroeconomic variability.UiPath Financial Statement Overview
Summary
UiPath demonstrates strong revenue growth and effective cost management, with notable improvements in cash flow despite persistent net losses. The balance sheet is robust, with low leverage and ample liquidity, although the company remains unprofitable with negative profitability ratios.Income Statement
UiPath has demonstrated consistent revenue growth with a substantial increase of approximately 34.5% from 2023 to 2024 and 9.3% from 2024 to 2025. Despite this growth, the company remains unprofitable with a negative net profit margin of -5.2% in 2025, although this has improved from previous years. The gross profit margin is strong at 82.7%, indicating effective cost management on direct expenses. However, negative EBIT and EBITDA margins suggest challenges in covering operating expenses.75
Positive
Balance Sheet
The balance sheet shows a healthy equity position, with an equity ratio of 64.4% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.04, suggesting minimal leverage risk. However, the return on equity is negative, reflecting ongoing net losses. The company has significant cash reserves, providing a buffer against financial uncertainties.70
Positive
Cash Flow
UiPath has shown a positive trend in operating cash flows, with a robust operating cash flow to net income ratio exceeding 4 in 2025, indicating good cash generation relative to reported losses. Free cash flow has also improved, showing positive growth. The company's ability to generate cash flow despite net losses is a key strength.80
Positive
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 589.61M | 1.43B | 1.31B | 1.06B | 892.25M | 607.64M | Gross Profit |
| 484.87M | 1.18B | 1.11B | 878.53M | 723.38M | 541.79M | EBIT |
| -319.23M | -162.57M | -164.72M | -348.28M | -500.95M | -110.32M | EBITDA |
| -306.13M | -145.34M | -141.70M | -329.56M | -486.24M | -90.72M | Net Income Common Stockholders |
| -313.43M | -73.69M | -89.88M | -328.35M | -525.59M | -92.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.63B | 1.63B | 1.88B | 1.76B | 1.87B | 460.52M | Total Assets |
| 2.87B | 2.87B | 2.95B | 2.74B | 2.57B | 866.46M | Total Debt |
| 77.82M | 77.82M | 67.07M | 63.44M | 51.40M | 20.08M | Net Debt |
| -801.38M | -801.38M | -994.61M | -1.34B | -1.72B | -337.61M | Total Liabilities |
| 1.02B | 1.02B | 938.64M | 815.05M | 650.53M | 1.67B | Stockholders Equity |
| 1.85B | 1.85B | 2.02B | 1.92B | 1.92B | -803.70M |
| Cash Flow | Free Cash Flow | ||||
| -11.96M | 305.64M | 291.74M | -33.80M | -68.02M | 25.98M | Operating Cash Flow |
| -5.34M | 320.56M | 299.08M | -9.98M | -54.96M | 29.18M | Investing Cash Flow |
| -83.39M | -45.50M | -439.57M | -289.14M | -35.44M | -125.99M | Financing Cash Flow |
| 1.46B | -450.51M | -196.90M | -60.67M | 1.47B | 250.42M |
UiPath Technical Analysis
Positive
13.22
Price Trends
11.88
Positive
12.34
Positive
12.69
Positive
Market Momentum
0.30
Positive
55.30
Neutral
26.37
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 13.22 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 11.88, and above the 200-day MA of 12.69, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 26.37 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 68 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.38B | 5,129.79 | 0.09% | ― | 2.28% | ― | |
74 Outperform | $4.97B | 18.68 | 19.69% | ― | 13.11% | 91.21% | |
71 Outperform | $7.07B | ― | -3.62% | ― | 7.21% | 23.13% | |
69 Neutral | $5.98B | 639.44 | 0.46% | ― | 9.05% | ― | |
64 Neutral | $6.04B | ― | -26.98% | ― | 32.25% | 20.56% | |
62 Neutral | $11.93B | 10.60 | -7.51% | 3.00% | 7.40% | -8.09% | |
60 Neutral | $8.20B | ― | -34.18% | ― | 24.11% | 21.87% |
* Technology Sector Average
Performance Comparison
PATH
UiPath
12.97
1.16
9.82%
ACIW
ACI Worldwide
47.06
11.81
33.50%
CCCS
CCC Intelligent Solutions Holdings
9.08
-2.49
-21.52%
CFLT
Confluent
24.09
-3.84
-13.75%
S
SentinelOne
17.96
-0.14
-0.77%
INFA
Informatica
24.08
-5.78
-19.36%
UiPath Corporate Events
Executive/Board Changes
UiPath Board Member Laela Sturdy Resigns
Neutral
May 8, 2025
On May 6, 2025, Laela Sturdy, a member of UiPath‘s Board of Directors since March 2021, announced her decision not to seek re-election and will resign before the 2025 Annual Meeting. Her departure is amicable, with no disagreements cited, and UiPath expressed gratitude for her contributions.
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.