UiPath's Q2 Results Showcase AI Focus and Restructuring Benefits, Analysts Remain Cautiously Optimistic

UiPath Q2 Results Reflect Restructuring Benefits, Analysts Praise 'Laser-Focus' On AI - UiPath (NYSE:PATH)

The company raised its fiscal 2025 top-line guidance from $145 million to $170 million. Shares of UiPath Inc PATH are down Friday despite the company's reporting in-line fiscal second-quarter results. Here are some key analyst takeaways: BMO Capital Markets analyst Keith Bachman maintained a Market Perform rating, while raising the price target from $14 to $15. DA Davidson analyst Gil Luria reaffirmed a Neutral rating, while lifting the price target from $13 to $15. JPMorgan analyst Mark Murphy reiterated an Overweight rating and price target of $19. RBC Capital Markets analyst Matthew Hedberg maintained a Sector Perform rating and price target of $16. KeyBanc Capital Markets analyst Jason Celino reaffirmed a Sector Weight rating on the stock.KeyBanc Capital Markets Check out other analyst stock ratings. BMO Capital Markets: UiPath's quarterly results were broadly in-line with low expectations, Bachman said in a note. This is a positive, after the previous quarter's execution challenges, amid a leadership change, he added. The company reported annual recurring revenues of $1.55 billion. This represents 19% year-on-year growth, but a deceleration of 2 points versus the prior quarter, the analyst stated. "We are encouraged by $850M cloud ARR, representing more than half of ARR and growing by 65% y/y, demonstrating PATH's cloud-first strategy is gaining traction," he further wrote. DA Davidson: UiPath's fiscal second-quarter results "demonstrated early success in the company's efforts to refocus on customer centricity," Luria said. The company raised its full-year adjusted operating income guidance from $145 million to $170 million. "The company is laser-focused on cementing its reputation as the world's leader in enabling actions from AI insight," the analyst wrote. UiPath had several enterprise wins and the net retention among its largest accounts remains at around 120%, he added. JPMorgan: While there are macro uncertainties, overall conditions are stabilizing compared to the previous quarter, Murphy said. Better execution and streamlining efforts helped UiPath "adapt well to the current environment," he added. The company indicated that "restructuring efforts primarily in its central functions, with a focus on sales operations and enablement, have enhanced efficiency and agility across the organization," the analyst wrote. Management announced "modest" raises to their full-year revenue and ARR guidance and "decent upticks for operating income and FCF guidance," he further stated. RBC Capital Markets: UiPath showed "signs of stability," following a "sizable guide-down across the board," Hedberg said. Management raised their fiscal 2025 guidance by more than the beat. The company "continues to work towards its strategic initiatives," he added. The company continues to focus on "realigning investments to higher ROI areas," adopting a stronger strategy for growth products, and focusing on expanding its channel partner relationships, the analyst stated. "Encouragingly, management highlighted strong early adoption and positive feedback from customers for Autopilot," he further wrote. KeyBanc Capital Markets: UiPath reported quarterly revenue and operating margin at $316.3 million and 2%. It beat consensus of $303.7 million and 0.9%, respectively. Both gross retention and net retention declined in the quarter to 97% and 115%, from 98% and 118% in the previous quarter. The company announced another share repurchase program of up to $500 million, the analyst stated. UiPath took its full-year guidance for operating income "meaningfully higher," implying operating margins of 12%, versus the Street estimates of 9.7%, , Celino wrote. PATH Price Action: Shares of UiPath had declined by 5.34% to $12.06 at the time of publication on Friday. Now Read: Wall Street Sighs In Relief As August Jobs Numbers Ease Recession Fears: Small Caps Outperform, Dollar Trims Weekly Losses Image courtesy of UiPath, Inc. Market News and Data brought to you by Benzinga APIs

UiPath rises after 'solid' Q2 results, but analysts remain largely neutral

UiPath's (NYSE:PATH) stock rose about 8% premarket on Friday after fiscal second quarter results beat estimates and the company raised its fiscal full year 2025 revenue outlook. However, analysts were largely neutral. Morgan Stanley assumed coverage of UiPath with an Equal-weight rating and $15 price target on the shares of the company, which provides an automation platform that offers a range of robotic process automation, or RPA, solutions. UiPath cleared a lowered bar with a solid beat and raise in the second quarter, said a team of analysts led by Sanjit Singh. The analysts added that signs of improved execution are balanced by Net New Annual Recurring Revenue, or NNARR, that is still declining. The clear mandate is to become the platform for AI-driven automation in a category with emerging alternatives. The second quarter results showed signs of better execution after a disappointing start to fiscal 2025. The key highlights included a beat and raise on Annual Recurring Revenue, or ARR, revenue, operating margin percentage and free cash flow, or FCF, as well as improved quarter-over-quarter performance on $100K and $1+ million customer additions, the analysts added. However, Singh and his team noted that the ongoing challenge is that NNARR is still declining materially and high end of fiscal 2025 ARR guidance suggests that this will continue. UiPath must convince customers that it is the optimal platform to unlock automation gains compared to traditional and emerging agent-based architectures, the analysts added. The analysts think this debate will remain unresolved for the foreseeable future, but currently the risk-reward is balanced, resulting in their Equal-weight rating. Meanwhile, Evercore maintained its In-Line rating but raised the price target on PATH to $16 from $13. Analysts led by Kirk Materne said that they were encouraged by the fiscal second results, though they believe that streamlining the organization and improving execution will be a multi-quarter process, especially through the continued macro environment. The analysts added that after speaking with the company, they remain constructive on UiPath's restructuring efforts to break down siloes, drive efficiency and collaboration, and maintain customer centricity. UiPath delivered strong fiscal second quarter results, in addition, the company's management increased fiscal 2025 top-line guidance by the amount of the beat, the analysts noted. For fiscal 2025, UiPath now expects revenue in the range of $1.420B to $1.425B versus prior forecast range of $1.405B to $1.410B provided during first quarter results in May. Consensus revenue estimate is $1.41B. Materne and his team noted that all eyes are now on the FORWARD user conference, where they expect the company's management to show numerous, diverse, and focused use cases for the Automation Platform as well as provide partners with important updates for future. Wells Fargo maintained its Equal Weight rating but raised the price target to $15 from $14. Analysts led by Michael Turrin noted that despite the near term improvement, they continue to see shares range-bound given transition and AI narrative noise.

Unveiling 11 Analyst Insights On UiPath - UiPath (NYSE:PATH)

In the last three months, 11 analysts have published ratings on UiPath PATH, offering a diverse range of perspectives from bullish to bearish. The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 0 0 11 0 0 Last 30D 0 0 9 0 0 1M Ago 0 0 1 0 0 2M Ago 0 0 0 0 0 3M Ago 0 0 1 0 0 Analysts have set 12-month price targets for UiPath, revealing an average target of $15.36, a high estimate of $18.00, and a low estimate of $14.00. This current average reflects an increase of 3.78% from the previous average price target of $14.80. Diving into Analyst Ratings: An In-Depth Exploration The standing of UiPath among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets. Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target Keith Bachman BMO Capital Raises Market Perform $15.00 $14.00 Gil Luria DA Davidson Raises Neutral $15.00 $13.00 Bryan Bergin TD Cowen Lowers Hold $16.00 $17.00 Keith Weiss Morgan Stanley Announces Equal-Weight $15.00 - Matthew Hedberg RBC Capital Maintains Sector Perform $16.00 $16.00 Raimo Lenschow Barclays Raises Equal-Weight $15.00 $14.00 Michael Turrin Wells Fargo Raises Equal-Weight $15.00 $14.00 Kirk Materne Evercore ISI Group Raises In-Line $16.00 $13.00 Brad Sills B of A Securities Raises Neutral $18.00 $16.00 Raimo Lenschow Barclays Lowers Equal-Weight $14.00 $16.00 Michael Turrin Wells Fargo Lowers Equal-Weight $14.00 $15.00 Key Insights: Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to UiPath. This information provides a snapshot of how analysts perceive the current state of the company. Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of UiPath compared to the broader market. Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance. Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of UiPath's market position. Stay informed and make well-informed decisions with our Ratings Table. Stay up to date on UiPath analyst ratings. Delving into UiPath's Background UiPath offers an end-to-end cross-application enterprise automation platform. The platform leverages a range of automation technologies including robotic process automation, application programming interface, and artificial intelligence. UiPath's solution can automate a broad range of repetitive tasks across industries including claims processing, employee onboarding, invoice to cash, loan applications, and customer service. A Deep Dive into UiPath's Financials Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale. Revenue Growth: UiPath's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2024, the company achieved a revenue growth rate of approximately 15.72%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector. Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -8.58%, the company may need to address challenges in effective cost control. Return on Equity (ROE): UiPath's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.42%, the company may face hurdles in achieving optimal financial performance. Return on Assets (ROA): UiPath's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.99%, the company may face hurdles in achieving optimal financial performance. Debt Management: UiPath's debt-to-equity ratio is below the industry average at 0.04, reflecting a lower dependency on debt financing and a more conservative financial approach. Analyst Ratings: Simplified Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors. This article was generated by Benzinga's automated content engine and reviewed by an editor. 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UiPath Reports Strong Q2 Results, $500M Share Repurchase Program, Upbeat Guidance - UiPath (NYSE:PATH)

Quarterly revenue of $316.25 million beats the analyst consensus estimate of $303.67 million. UiPath, Inc. PATH posted its second-quarter financial results after Thursday's closing bell. Here's a look at the details from the report. The Details: UiPath reported quarterly earnings of four cents per share, which beat the analyst consensus estimate of three cents. Quarterly revenue of $316.25 million beat the analyst consensus estimate of $303.67 million and represents a 10.07% increase over the same period last year. ARR of $1.551 billion increased 19% year-over-year Net new ARR of $43 million Dollar-based net retention rate of 115% Non-GAAP gross margin was 83% UiPath announced a $500 million expansion of its share repurchase program. The company also announced Ashim Gupta will be taking on an expanded role as chief operating officer in addition to his responsibilities as chief financial officer, effective immediately. "We are pleased with our second quarter results, with ARR growing 19 percent year-over-year, a testament to the team's improved execution and the compelling value that our AI-powered automation platform delivers to our customers," said Daniel Dines, UiPath CEO. "Our conversations with customers and partners deepen our conviction that there is an increasing need for AI and automation, and our unwavering commitment to innovation continues to position us as the automation platform of choice for capturing the opportunities that AI brings to an enterprise." Read Next: What's Going On With Celsius Holdings Stock? Outlook: UiPath sees third-quarter revenue in a range of $345 million to $350 million, versus the $347.24 million estimate, and fiscal year revenue in a range of $1.42 billion to $1.425 billion, versus the $1.41 billion estimate. PATH Price Action: According to Benzinga Pro, UiPath shares are up 7.54% after-hours at $13.70 at the time of publication Thursday. Read Also: Why Is Eastside Distilling Stock Rocketing Higher? Photo: Courtesy of UiPath, Inc. Market News and Data brought to you by Benzinga APIs

UiPath stock target raised by DA Davidson on refocus success By Investing.com

DA Davidson has adjusted its outlook on UiPath Inc. (NYSE: NYSE:PATH), increasing the price target to $15 from the previous $13, while maintaining a Neutral stance on the stock. The revision follows UiPath's second fiscal quarter of 2025 results, which indicated the company's progress in its initiative to become more customer-centric. The company's recent earnings report showed a slight improvement in revenue forecasts and a more significant boost to profit expectations, attributed to stringent operational discipline and a notable strategy of share repurchases. As of August 30, UiPath's buyback program has effectively increased per-share ownership by 5%. DA Davidson's revised price target reflects a valuation of the enterprise at 5 times its sales and 22 times its free cash flow (FCF). The update to UiPath's price target comes after careful consideration of the company's financial health and market strategy. The increased target suggests a positive view of UiPath's recent business decisions and their expected outcomes on the company's financial performance. In other recent news, UiPath, a leading enterprise automation and AI software firm, has made several significant announcements. It has appointed S. Somasegar, a seasoned technology executive and Managing Director at Madrona Venture Group (LON:VLG), to its Board of Directors. Somasegar brings extensive experience from his tenure at Microsoft (NASDAQ:MSFT) and his role in investing in transformative technology companies. Moreover, UiPath has announced that Ashim Gupta, who has been with the company since 2018, has assumed the role of Chief Operating Officer while retaining his position as Chief Financial Officer. The strategic move is aimed at consolidating UiPath's operational and financial leadership. In an effort to enhance operational efficiency, UiPath is also planning to reduce its global workforce by approximately 10%. The majority of this reduction is anticipated to be completed by the end of the first quarter of fiscal year 2026, with restructuring costs projected to range from $17 million to $25 million. Following DA Davidson's updated price target for UiPath Inc. (NYSE:PATH), real-time data from InvestingPro aligns with the optimistic outlook. With a market capitalization of $7.3 billion, UiPath's financial metrics reveal a company that, despite a negative P/E ratio of -83.07, holds promise due to its impressive gross profit margin of 84.74% over the last twelve months as of Q1 2025. This high margin is indicative of the company's strong pricing power and cost management, aligning with DA Davidson's note on operational discipline. The revenue growth of 22.71% over the same period further supports the narrative of a company on the rise, which is also echoed by a 16.99% return on the stock price over the last month. This uptick in stock performance is a testament to investor confidence and the company's strategic initiatives. Moreover, UiPath's ability to maintain more cash than debt on its balance sheet and the expectation that net income will grow this year, as highlighted by two InvestingPro Tips, provide additional layers of financial stability and growth potential. While UiPath does not pay a dividend, indicating a reinvestment of earnings back into the company's growth, analysts predict the company will be profitable this year. This projection, coupled with the fact that liquid assets exceed short-term obligations, suggests a strong financial footing for UiPath. For those interested in a deeper dive, there are numerous additional InvestingPro Tips available at: https://www.investing.com/pro/PATH, offering a comprehensive analysis of UiPath's financial health and market position.

Mizuho highlights strong execution but AI challenges for UiPath stock By Investing.com

On Friday, Mizuho maintained its Neutral stance on UiPath Inc. (NYSE: NYSE:PATH) stock, with a consistent price target of $14.00. The decision follows UiPath's second quarter revenue surpassing consensus estimates, marking a $14 million beat, an improvement from the $3 million beat in the previous quarter. The company's management credited the success to better execution amidst a fluctuating economic landscape. UiPath also provided an updated forecast, increasing its FY25 revenue growth guidance to 9% from the previously projected 8%. This revision indicates a positive trajectory for the company's financial outlook. Mizuho acknowledged this upward adjustment as a sign of progress for UiPath. Despite the encouraging performance and heightened expectations, some investors remain cautious. The introduction of new platform features aimed at enhancing AI and automation capabilities, including the use of generative AI and natural language processing, has not fully assuaged concerns about the long-term demand for Robotic Process Automation (RPA) in light of potential disruptions from AI advancements. Mizuho's price target for UiPath is based on 4x next twelve months (NTM) enterprise value to revenue (EV/Rev) and 19x NTM enterprise value to free cash flow (EV/FCF), which aligns with the valuations of its industry peers. The firm's reiteration of the Neutral rating reflects a careful assessment of UiPath's current position and potential in the market. In other recent news, UiPath Inc. has seen a series of notable developments. DA Davidson has adjusted its price target for the company to $15, maintaining a neutral stance. This revision followed UiPath's Q2 2025 results, which showcased an improvement in revenue forecasts and a significant boost to profit expectations, attributed to operational discipline and a strategic share repurchase program. In addition, UiPath has announced significant changes to its leadership team. S. Somasegar, a seasoned technology executive, has been appointed to its Board of Directors. Ashim Gupta, a veteran within the company, has assumed the role of Chief Operating Officer while retaining his position as Chief Financial Officer. UiPath also plans to reduce its global workforce by approximately 10% to enhance operational efficiency. The restructuring costs for this initiative are projected to range from $17 million to $25 million. In response to these developments, several financial analyst firms have adjusted their stance on UiPath. Scotiabank and Truist Securities have maintained their ratings, while BMO Capital Markets and Macquarie have adjusted their price targets for UiPath. Canaccord Genuity has maintained a buy rating on UiPath's shares, despite reducing its price target. UiPath Inc. (NYSE: PATH) has shown resilience in a challenging economic environment, as reflected in its recent quarterly revenue surpassing estimates. InvestingPro data highlights a market capitalization of $7.3 billion, with a notable revenue growth of 22.71% in the last twelve months as of Q1 2025. This growth is coupled with an impressive gross profit margin of 84.74%, illustrating the company's efficiency in maintaining profitability despite market fluctuations. InvestingPro Tips indicate that UiPath holds more cash than debt on its balance sheet and analysts predict the company will be profitable this year, signaling a strong financial foundation and a positive outlook for future profitability. These insights suggest that UiPath's strategic initiatives in AI and automation could potentially strengthen its market position. With 9 additional InvestingPro Tips available, including a detailed analysis of the company's financial health and stock performance, investors can further explore UiPath's potential at InvestingPro. The company's stock has experienced a significant rebound over the last month with a 16.99% return, despite a more substantial decline over the last six months. As Mizuho maintains a Neutral stance with a $14.00 price target, the InvestingPro fair value estimate stands at $14.38, slightly above Mizuho's target, suggesting a potential undervaluation of UiPath's shares. This data may provide investors with a more nuanced perspective on the company's valuation and future prospects.

UiPath jumps following Q2 results, CFO takes on expanded COO role

UiPath (NYSE:PATH) shares jumped 8% during post-market trading after it reported its second quarter fiscal 2025 financial results on Thursday. For the quarter ended July 31, UiPath reported adjusted earnings per share of $0.04, which was more than the consensus estimate of $0.03. The enterprise automation and software company reported revenue of $316M, which was more than the consensus of $303.74M. "Our conversations with customers and partners deepen our conviction that there is an increasing need for AI and automation, and our unwavering commitment to innovation continues to position us as the automation platform of choice for capturing the opportunities that AI brings to an enterprise," said UiPath CEO Daniel Dines. For the quarter in progress, UiPath expects revenue ranging from $345M to $350M. Revenue for the full fiscal year, which ends Jan. 31, 2025, is expected to range from $1.42B to $1.425B. UiPath also revealed, effective today, Ashim Gupta will be taking on an expanded role as chief operating officer in addition to his responsibilities as chief financial officer. He has served as the company's CFO since 2019. "He has played a pivotal role in helping us to drive operational efficiencies across the business, while delivering long-term shareholder value and sustained growth at scale," Dines said. "Formalizing his operational leadership with his expanded role as COO will serve the company well now and into the future." UiPath also announced the board has approved a $500M share repurchase program. UiPath will host a live earnings call today at 5 p.m ET.