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UiPath Q1 Earnings In Line With Estimates, Revenues Increase Y/Y
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Key Takeaways
PATH's Q1 FY27 revenues rose 17% y/y to $418.4M, while ARR increased 12%.
UiPath reported 16 of its top 20 deals included AI capabilities tied to automation workflows.
PATH's FY27 revenues and ARR are expected to rise $1.781B and $2.063B, respectively.
UiPath’s (PATH - Free Report) first-quarter fiscal 2027 earnings matched the Zacks Consensus Estimate of 15 cents per share and increased 36.4% year over year, while revenues of $418.4 million topped the consensus mark by 5.3%. Revenues rose 17% year over year, supported by strong demand for AI-driven automation and orchestration offerings.
The company continued to benefit from expanding enterprise adoption of agentic artificial intelligence (AI) solutions. Annualized renewal run rate (ARR) rose 12% year over year to $1.901 billion, while the dollar-based net retention rate was 109%.
PATH's ARR & Revenues Expand
UiPath generated $49 million in net new ARR during the quarter, reflecting steady customer expansion activity. Subscription services revenues were $252.9 million, while license revenues reached $149.3 million.
Per management, 16 of the company’s top 20 deals included AI capabilities. AI-related expansion deals were six times larger than non-AI deals, highlighting rising enterprise demand for automation tied to generative AI workflows.
UiPath Pushes Agentic AI Adoption
UiPath continued investing in agentic automation and process-orchestration initiatives during the quarter. Management said adoption of its agentic products has shifted from pilot programs to production deployments over the past year.
At its DevCon event, the company introduced UiPath for Coding Agents, enabling developers to connect coding agents with the UiPath platform to create, deploy and manage automations. Management believes the offering could reduce implementation timelines and maintenance burdens in complex enterprise environments.
The company also launched industry-focused AI workflow solutions spanning finance, retail, manufacturing and financial services. New offerings address use cases including purchase-to-pay workflows, inventory management, loan origination and financial crime compliance.
PATH Benefits From Enterprise Expansion
UiPath highlighted several large customer wins and expansions tied to process orchestration and AI automation deployments. A Fortune 500 energy company reportedly positioned UiPath at the center of a $70 million cost-reduction initiative.
Management also cited a large healthcare distribution customer expected to achieve multi-million-dollar annual savings through workflows combining AI agents and deterministic automation. The deployment contributed to a seven-figure expansion during the quarter.
The company continued to gain traction with Maestro, its orchestration platform designed to coordinate agents, automations, application programming interfaces, and people across enterprise workflows. UiPath launched Maestro Case in public preview to support the orchestration of unstructured and exception-driven work processes.
PATH Strengthens Profitability & Cash Flow
UiPath reported first-quarter GAAP operating income of $28 million. Non-GAAP operating income increased to $92 million, representing an operating margin of 22%.
GAAP gross margin was 82%, while non-GAAP gross margin came in at 83%. Management attributed margin expansion to improved operational efficiency and disciplined cost management across the business.
The company generated $132 million in net cash flow from operations during the quarter. Adjusted non-GAAP free cash flow totaled $130 million.
UiPath exited the quarter with $1.42 billion in cash, cash equivalents and marketable securities, providing significant financial flexibility. The strong balance sheet supports continued investment in AI innovation, enterprise automation capabilities and strategic partnerships.
UiPath Guidance for Steady Q2 & FY27 Growth
For the second quarter of fiscal 2027, UiPath expects revenues to be between $395 million and $400 million, with the midpoint of $397.5 million being in line with the Zacks Consensus Estimate. The company projects ARR to be in the range of $1.929-$1.934 billion as of July 31, 2026.
Management expects second-quarter non-GAAP operating income of approximately $75 million. For fiscal 2027, UiPath projects revenues to be between $1.776 billion and $1.781 billion, with the midpoint of $1.78 billion being above the Zacks Consensus Estimate of $1.76 billion.
The company anticipates fiscal 2027 ARR to be in the range of $2.058 billion to $2.063 billion. Full-year non-GAAP operating income is projected at approximately $430 million, reflecting continued operating discipline amid ongoing investments in AI and orchestration capabilities.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.
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UiPath Q1 Earnings In Line With Estimates, Revenues Increase Y/Y
Key Takeaways
UiPath’s (PATH - Free Report) first-quarter fiscal 2027 earnings matched the Zacks Consensus Estimate of 15 cents per share and increased 36.4% year over year, while revenues of $418.4 million topped the consensus mark by 5.3%. Revenues rose 17% year over year, supported by strong demand for AI-driven automation and orchestration offerings.
UiPath, Inc. Price, Consensus and EPS Surprise
UiPath, Inc. price-consensus-eps-surprise-chart | UiPath, Inc. Quote
The company continued to benefit from expanding enterprise adoption of agentic artificial intelligence (AI) solutions. Annualized renewal run rate (ARR) rose 12% year over year to $1.901 billion, while the dollar-based net retention rate was 109%.
PATH's ARR & Revenues Expand
UiPath generated $49 million in net new ARR during the quarter, reflecting steady customer expansion activity. Subscription services revenues were $252.9 million, while license revenues reached $149.3 million.
Per management, 16 of the company’s top 20 deals included AI capabilities. AI-related expansion deals were six times larger than non-AI deals, highlighting rising enterprise demand for automation tied to generative AI workflows.
UiPath Pushes Agentic AI Adoption
UiPath continued investing in agentic automation and process-orchestration initiatives during the quarter. Management said adoption of its agentic products has shifted from pilot programs to production deployments over the past year.
At its DevCon event, the company introduced UiPath for Coding Agents, enabling developers to connect coding agents with the UiPath platform to create, deploy and manage automations. Management believes the offering could reduce implementation timelines and maintenance burdens in complex enterprise environments.
The company also launched industry-focused AI workflow solutions spanning finance, retail, manufacturing and financial services. New offerings address use cases including purchase-to-pay workflows, inventory management, loan origination and financial crime compliance.
PATH Benefits From Enterprise Expansion
UiPath highlighted several large customer wins and expansions tied to process orchestration and AI automation deployments. A Fortune 500 energy company reportedly positioned UiPath at the center of a $70 million cost-reduction initiative.
Management also cited a large healthcare distribution customer expected to achieve multi-million-dollar annual savings through workflows combining AI agents and deterministic automation. The deployment contributed to a seven-figure expansion during the quarter.
The company continued to gain traction with Maestro, its orchestration platform designed to coordinate agents, automations, application programming interfaces, and people across enterprise workflows. UiPath launched Maestro Case in public preview to support the orchestration of unstructured and exception-driven work processes.
PATH Strengthens Profitability & Cash Flow
UiPath reported first-quarter GAAP operating income of $28 million. Non-GAAP operating income increased to $92 million, representing an operating margin of 22%.
GAAP gross margin was 82%, while non-GAAP gross margin came in at 83%. Management attributed margin expansion to improved operational efficiency and disciplined cost management across the business.
The company generated $132 million in net cash flow from operations during the quarter. Adjusted non-GAAP free cash flow totaled $130 million.
UiPath exited the quarter with $1.42 billion in cash, cash equivalents and marketable securities, providing significant financial flexibility. The strong balance sheet supports continued investment in AI innovation, enterprise automation capabilities and strategic partnerships.
UiPath Guidance for Steady Q2 & FY27 Growth
For the second quarter of fiscal 2027, UiPath expects revenues to be between $395 million and $400 million, with the midpoint of $397.5 million being in line with the Zacks Consensus Estimate. The company projects ARR to be in the range of $1.929-$1.934 billion as of July 31, 2026.
Management expects second-quarter non-GAAP operating income of approximately $75 million. For fiscal 2027, UiPath projects revenues to be between $1.776 billion and $1.781 billion, with the midpoint of $1.78 billion being above the Zacks Consensus Estimate of $1.76 billion.
The company anticipates fiscal 2027 ARR to be in the range of $2.058 billion to $2.063 billion. Full-year non-GAAP operating income is projected at approximately $430 million, reflecting continued operating discipline amid ongoing investments in AI and orchestration capabilities.
Currently, UiPath carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Accenture plc (ACN - Free Report) reported impressive second-quarter fiscal 2026 results.
ACN’s earnings were $2.93 per share, which beat the Zacks Consensus Estimate by 2.5%. The metric increased 3.9% from the year-ago quarter. Total revenues of $18 billion beat the consensus estimate by 1.2% and rose 8.3% on a year-over-year basis.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.
ADP’s earnings per share of $3.37 beat the consensus estimate by 2.7% and increased 10.1% from the year-ago quarter. Total revenues of $5.94 billion surpassed the consensus estimate by 1.4% and grew 7% on a year-over-year basis.