UiPath Beats Expectations with Strong Q1 Results, Driven by Agentic AI Momentum

Strong execution and agentic AI tailwinds help UiPath beat expectations - SiliconANGLE

Strong execution and agentic AI tailwinds help UiPath beat expectations Business automation software company UiPath Inc. is flying high today, with its stock surging more than 11% after hours on the back of better-than-expected financial results and strong guidance for the current quarter. The company reported first-quarter earnings before certain costs such as stock compensation of 11 cents per share, edging past Wall Street's view of a 10-cent-per-share profit. Revenue for the period rose 6% from a year earlier to $356.6 million, surging past the analyst's consensus estimate of $332.9 million. For the quarter, UiPath posted a net loss of $22.5 million, improving on the $28.7 million loss it reported in the year-ago period. UiPath is a leader in the robotic process automation industry. It sells tools that can help businesses to lower costs and reduce operational errors by automating repetitive tasks such as data entry. This core technology is powered by artificial intelligence models that study how employees perform common tasks, such as data entry, so they can replicate that work with no mistakes. Recently, the company has been looking to develop more sophisticated AI models, believing it's well-placed to capitalize on the growing interest in so-called "agentic AI." These AI agents are sometimes known as "digital laborers," and have the ability to perform more complex tasks on behalf of users with minimal supervision. UiPath outlined its strategy for agentic AI last October, and last month it finally put some meat on the bones of that plan with the launch of a new platform called Maestro, which allows users to build and orchestrate teams of AI agents. The platform can be used to create AI agents that automate, model and optimize complex business processes, leveraging the company's flagship "process intelligence" capabilities. It also offers real-time monitoring of key performance indicators, so teams can continuously optimize fleets of AI agents. Maestro is critical to the future success of UiPath, which has struggled with labored revenue growth over the last couple of years, having historically always grown much faster. AI agents can exceed the potential of UiPath's RPA bots by performing much more sophisticated tasks with minimal supervision. In a conference call with analysts, UiPath Chief Executive Daniel Dines (pictured) said the launch of Maestro was "one of the most important and successful product introductions in our history." He told analysts that the momentum following its launch has been "exciting", matching the company's strong first-quarter financial results. UiPath said it ended the quarter with $1.693 billion in annual recurring revenue, up 12% from a year earlier. Meanwhile, its cash flow from operations reached $119 million, with an adjusted free cash flow of $117 million. It ended up with $1.59 billion in cash, cash equivalents and marketable securities. "We executed with discipline and focus in what continues to be a variable macroeconomical environment, exceeding expectations on the top and bottom-line," Dines said. UiPath Chief Financial Officer and Chief Operating Officer Ashim Gupta said he was excited and encouraged by the early traction the company is seeing with its agentic AI solutions, but he warned investors not to expect too much, too soon. "Adoption is still in its early phases, and as such we don't expect a material revenue contribution in fiscal 2026," he warned. On the other hand, Dines alluded to the progress the company is making in terms of customer acquisition. He referenced a new "multiyear, multimillion dollar expansion" with a Fortune 15 healthcare company, as well as a new "AI partnership" with Google LLC. For the current quarter, UiPath is anticipating revenue of between $345 million and $350 million, well ahead of Wall Street's target of $333.1 million. The company also upped its full-year revenue forecast from a range of $1.52 billion to $1.53 billion to a new range of $1.549 billion to $1.554 billion. The new range compares much more favorably with Wall Street's target of $1.53 billion. "As we look to the remainder of the year, we remain focused on executing our strategy, investing in innovation and maintaining operational discipline to drive sustainable growth and profitability," Gupta said. The after-hours market action means UiPath's stock is now up 2% in the year to date, but it still has a way to go, as it remains down more than 29% over the last 12 months.

UiPath CEO Daniel Dines - a five-fold "right to win" powers Q1 to a solid start to the fiscal '26 year

Revenues up, losses down at UiPath - and it's Agentic Automation momentum that's powering the way ahead, according to CEO Daniel Dines, who also called the firm's Maestro offering "one of the most important and successful product introductions in our history". Revenue was up six percent year-on-year to $356.6 million, while net losses were down from the comparable $28.7 million to $22.5 million. Annual Recurring Revenue of $1.693 billion was up 12% from a year earlier. Back to Dines: Over the last several months, I have spent considerable time deeply engaged in product sessions and customer conversations all centered around Agentic Automation. The energy and potential I'm seeing are palpable, and I've never been more confident about the path we are on. The customer energy has been reinforced by several high-impact events this quarter, each amplifying our platform's potential and setting the stage for our next phase of growth. Of the importance of Maestro, he argued: Many companies, when they speak about orchestration, they mean mostly an agent-to-agent orchestration. They mean the capability of managing a swarm of agents. Our Maestro is more ambitious in a way. We connect agents with robots and people, and it [has the] ability to deliver fixed workflows at the enterprise level that can be executed in an autonomous way. it makes it a very powerful proposition in the market. We spent a lot of time in order to create better analytics to understand better how you're or how to see to get great insights into your workflows, how your agents operates, how your robots operate, what's the human impact? We even combine process mining data into these insights. So this, in itself, it is a very unique proposition in the market. So overall, I think, that our Agentic Orchestration is built on a very new modern technology. It has all the whistles and bells of modern workflow technology plus with amazing insights into your operational data. There's no lack of confidence on the part of the UiPath founder on show as he talks about the firm's "right to win" which he argued is based on five foundations: First, our extensive installed base of robots and AI capabilities already operating autonomously across more than 10,000 customers gives us unparalleled insight into real enterprise processes and workflows where agents are a natural extension. Second, we uniquely bridge deterministic automation or RPA (Robot Process Automation) and probabilistic automation or agentic, allowing customers to extend automation into more complex adaptive workflows. Third, our vendor agnostic architecture enables seamless integration with any agent framework, whether pro code or low-code, providing unmatched flexibility. Fourth, we've built a secure, compliant and enterprise-grade platform that meets the highest standards of governance critical for enterprise-grade automation. And fifth, our unified end-to-end platform architecture delivers a fully integrated experience from discovery to deployment, all governed centrally enabling customers to scale automation with confidence and control. Those five factors are driving customer interest and adoption, he added: Since launching Agent Builder in preview this January, we've seen accelerating adoption with customers creating thousands of autonomous agents and generating over 250,000 agent runs today. Momentum is also building for Maestro, our Agentic orchestration solution which entered preview in March and has already powered more than 11,000 process instances, highlighting strong early demand for coordinated enterprise-grade Agentic automation. He cited the anonymized example of a Fortune 15 global healthcare company which is adopting Agentic Automation "at scale". He said: In our first Agentic deal since launching our products into general availability, they signed a multiyear, multimillion dollar expansion to adopt UiPath Maestro, an agent builder to design, deploy and manage AI agents across complex cross-functional workflow. These capabilities enable them to integrate agents into real business processes with the governance, scalability and human in the loop controls requires for enterprise adoption. He added: After selecting UiPath to consolidate on a single platform with deep expertise in both Agentic Automation and RPA, they are planning to migrate all of their existing automations to our platform and are designing a solution to automate their complex inbound sales order process by integrating agents, Autopilot and RPA with an expected reduction in processing time of 25%. Meanwhile a Maestro early adopter was referenced in the form of a global apparel retailer, which is orchestrating the end-to-end user query process with the master support agent: They've automated the entire workflow from intelligent task groping and ticket generation to resolution and closure, resulting in a streamlined, highly efficient support operation, by seamlessly connecting robots AI agents and systems, both inside and outside UiPath, Maestro enables smooth coordination across multiple complex automated processes. Internally, UiPath has been eating its own dog food with the completion of its Customer Zero initiative in tandem with Deloitte to migrate to SAP S4/4 HANA. Dines explained: We re-imagined the entire process and pioneered an automation-first Agentic ERP approach that now serves as a model for the market. As a result, more than 200 automations were delivered across core processes like quote to cash and treasury with nearly 60% of test cases automated, significantly reducing the load on business users and accelerating delivery time-lines. With our internal implementation life, we are now focused on the next phase, embedding Agentic AI capabilities into the ERP environment. Powered by UiPath Maestro this next generation architecture will enable smart agents to handle decision-making, identify exceptions and orchestrate tasks across SAP and non-SAP applications. The learnings from this are now being monetized with other customers, such as a Fortune 20 Oil & Gas company. Dines said: In one of the largest SAP implementations to date, they will be leveraging UiPath and Deloitte's automation playbook to significantly reduce implementation time and expect to automate 70% of all manual tests. A strong and solid start to the 2026 fiscal year for UiPath - and, as noted, a tangible air of self-confidence in terms of the company's positioning and product offerings, although I'm instinctively uneasy about any "right to win" belief system. Let the tech speak for itself, and on that front UiPath shows no sign of any problem. Wall Street was certainly impressed with the share price getting a nice upward boost yesterday.

UiPath Q1 Earnings: Partners Part Of Path To Uniting Agents, Robots, Humans

"Together, we've turned the promise of agentic automation into a powerful reality," UiPath CEO and founder Daniel Dines said. UiPath executives attributed part of the robotic process automation software vendor's progress in the artificial intelligence era to its partner ecosystem during the company's fiscal 2026 first quarter earnings call Thursday. "The progress we've made is a testament to the revitalized innovation of our teams, the deep trust of our customers and the strength of our partner ecosystem," CEO and founder Daniel Dines (pictured) said on the call with financial analysts. "Together, we've turned the promise of agentic automation into a powerful reality, and we are just getting started." Ashim Gupta, chief financial officer and chief operating officer for the New York-based vendor, told analysts that the new UiPath partner program launched during the quarter "has been well-received and places a strong emphasis on enabling our partners in conjunction with the agentic launch." "This collaborative approach is becoming a powerful engine for shared customer success," he said. [RELATED: UiPath CEO Resigns; Company Names Former CEO, Chief Innovation Officer To Top Spot] Global systems integrator (GSI) partners, including CRN 2025 Solution Provider 500 members Accenture, Cognizant and CGI, presented at UiPath's annual DevCon event in April. More than 40 partners have completed the vendor's agentic "fast track" training program, "a clear reflection of how invested our partners are in driving the agentic era forward for our customers," Gupta said. When asked why revamping the partner program was important, the CFO said that "it's super important that our partners are high quality and properly incentivized because they are often very close to our key customers." Regional SIs (RSIs) are key to growing the company's base of $100,000-plus customers, he said. UiPath ended the first quarter (ended April 30) with about 11,000 customers, about 2,000 of them with $100,000 or more in annual recurring revenue (ARR), up 13 percent year over year. About 400 of them had $1 million or more in ARR. The company's executives also said to expect stability in its leadership and core employee teams. "We're always going to be looking for ways to go faster, be more focused and address the needs of our customers, but nothing that I see as disruptive," Gupta said. Analysts were looking for signs of progress from UiPath after what Bank of America called "disappointing" fourth quarter revenue growth and fiscal year 2026 outlook. The investment firm was hoping for 14 percent expected ARR growth for the fiscal year, but UiPath said to expect 9 percent instead. UiPath partners had reported "incremental weakness with performance coming in-line to below expectations" during the quarter but "interest in the company's agentic AI solutions generating traction, an encouraging sign given the level of innovation introduced to the portfolio over the past several quarters," according to a report in May by Morgan Stanley. Dines called the launch of UiPath Platform for agentic automation during the quarter "one of the most important and successful product introductions in our history." The platform bridges RPA's deterministic automation and agentic probabilistic automation for more complex workflows, he said. UiPath AI capabilities are operating autonomously across more than 10,000 customers, Dines said, giving the vendor "unparalleled insight into real enterprise processes and workflows where agents are a natural extension." The platform's vendor agnostic architecture also allows integration with any agent framework while maintaining governance standards as a differentiator, he said. Since UiPath launched its agent builder preview, customers have developed thousands of autonomous agents. Its Maestro agentic orchestration product has powered more than 11,000 process instances since entering preview. "Leaders across industries see agentic automation as a key to expanding AI's role from supporting operations to actively guiding them," Dines said. "They increasingly recognize the need for both deterministic and probabilistic automation. Our platform approach uniquely addresses this demand and is helping us win new customers." UiPath's Autopilot AI tool saw monthly engaged users grow 60-plus percent sequentially, with actions taken growing by 86 percent. CFO Gupta said that because adoption the agentic platform is still in its early phases, "we don't expect a material revenue contribution in fiscal 2026." "We view fiscal 2026 as a foundational year that will position us to drive meaningful new revenue streams in fiscal 2027 and beyond," the CFO said. While the executives at other tech companies, including IBM, Microsoft and Salesforce, have struck a more optimistic tone about customer demand amid changing prices as countries negotiate global tariffs, UiPath's executives said they continue to see "a variable macroeconomics environment" lasting throughout the year. New pricing options, including a consumption-based plan, could prove enticing to some customers, Dines said on the call. When asked about customer feedback to UiPath's unified pricing model, he said "the initial reaction is positive because the pricing model is tied closer to the adoption of the software." "We went a long way to simplify the model ... especially in this new world of agentic," he said. "This is one of the most interesting challenges to solve-how can you price the use case? And we are working closely with customers in making them really understand." On UiPath's public sector business-the company's third largest vertical-Dines said that "renewals are progressing well, but there is continued pressure on the new budgets being finalized." "Looking forward, we'll continue building on our conversations with administration officials, united by a shared goal of transforming the government," he said. "At the same time, we recognize that this transition is still evolving, and we remain prudent in our guidance for the remainder of the year." Gupta added that some government agencies performed better than others and some saw policy moratoriums lifted. Some agencies were "still finalizing their current procurement routines," resulting in a slowdown. UiPath reported $357 million in revenue during the quarter, up 6 percent year over year and beating Wall Street expectations. Its annual recurring revenue of $1.7 billion marks an increase of 12 percent year over year-about in line with expectations-and includes net-new ARR of $27 million. Remaining performance obligation (RPO) was up 12 percent year over year to $1.2 billion. Current RPO (cRPO) was $776 million, up 14 percent. Cash flow from operations reached $119 million. Using Generally Accepted Accounting Principles (GAAP), UiPath saw an operating loss of $16 million. For the same period last year, the loss was $49 million. Non-GAAP operating income was $70 million. The company ended the quarter with cash, cash equivalents and marketable securities of $1.6 billion. UiPath executives expect $345 million to $350 million in revenue in the second fiscal quarter-above expectations-and ARR of about $1.7 billion. It expects non-GAAP operating income of about $40 million. For the full fiscal year, UiPath expects revenue of about $1.55 billion-above expectations-and ARR of about $1.8 billion. It expects non-GAAP operating income of about $305 million. UiPath's stock traded at about $14 a share after market close Thursday, up about 11 percent.

Analysts Applaud UiPath's AI Traction, But Net New ARR Slide Sparks Caution - UiPath (NYSE:PATH)

UiPath, Inc. PATH shares are trading higher after the company reported better-than-expected first-quarter results, issued second-quarter sales guidance above estimates, and raised its FY26 guidance. On Thursday, the company reported revenue of $356.62 million, versus estimates of $332.87 million, and adjusted EPS of 11 cents, exceeding the estimates of 10 cents. The company raised its fiscal 2026 forecast from a range of $1.52 billion to $1.53 billion to a new range of $1.549 billion to $1.554 billion versus estimates of $1.53 billion. Also Read: Apple May See Fewer Searches In Safari, But Google CEO Sundar Pichai Insists AI Is Fueling Overall Query Growth: 'Far From A Zero-Sum Game' Many analysts raised the price forecast on the stock following the results. RBC Capital analyst Matthew Hedberg maintained a Sector Perform rating and raised the price target from $13 to $15. After a challenging initial FY26 guide and miss to end last year due to public sector issues, UiPath showed encouraging progress in that vertical through proactive engagement, said the analyst. According to the analyst, the Federal renewals met expectations, with some agencies even outperforming, though budget finalizations still present some pressure. UiPath is seeing early success with agentic initiatives, including over 250,000 agent runs on Agent Builder and 11,000 process instances powered by Maestro since their preview releases, Hedberg remarked in an analyst note. The analyst said that despite ongoing macroeconomic variability, management expressed continued prudence in their FY26 guidance, which was nonetheless raised across the board. Hedberg highlighted the company's optimism about its agentic AI opportunities and early customer interest, though significant revenue contributions from this area are not anticipated until FY27. Needham analyst Scott Berg reiterated a Hold rating. In an analyst note, Berg observed that UiPath posted a solid upside in revenue and operating income versus low Street expectations, primarily driven by strong license revenue that exceeded their estimate by 24%. However, net new ARR came in at $27 million, a 39% year-over-year decrease (compared to a consensus of +$22.6 million), which the analyst attributes to lingering impacts from go-to-market (GTM) changes and execution improvements from FY25. Berg pointed out that the current guidance indicates an increasingly second-half weighted performance, with 76% of net new ARR expected in the second half versus 57% in FY25, suggesting a moderately more challenging ramp-up. The guidance comes despite continued declines in key metrics, including Net Revenue Retention (NRR), which dropped to 108% in the quarter, Berg added. KeyBanc analyst Jason Celino retained a Sector Weight rating on the stock. The analyst revised the FY26 estimates to account for the first quarter results and updated the outlook, expecting revenue of $1.552 billion (vs. $1.528 billion prior & consensus of $1.522 billion) for FY26. While the analyst finds the improved results and advancements within the public sector encouraging, he maintained the rating due to the early stage of the agentic AI opportunity and ongoing macroeconomic uncertainty. Truist analyst Terry Tillman raised the price forecast from $12 to $13 while maintaining a Hold rating. In an analyst note, Tillman underscored that the company surpassed their estimates, with particularly strong beats in total revenue and non-GAAP operating income. Positive traction appears to be building from agentic solutions, the new partner program, and the recently acquired Peak, among other initiatives, which led the analyst to raise the estimates based on the improved outlook. In particular, Tillman now sees revenue of $1.547 billion (vs. $1.527 billion earlier) compared to a consensus of $1.522 billion for FY26. The analyst emphasized the company's narrative is still a work in progress concerning the improvement of its annualized renewal run rate (ARR) and the return of net new ARR to a trajectory of robust growth. Price Action: PATH shares are trading higher by 1.20% to $13.10 at last check Friday. Read Next: OpenAI Wants Its Fraud And Media Manipulation Countersuit Against Elon Musk Kept Alive, Labels His $97.4 Billion Bid A Stunt Photo by Ian Dewar Photography via Shutterstock PATHUiPath Inc$13.071.02%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum24.52Growth29.16QualityNot AvailableValue56.65Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

UiPath Q1 FY2026 slides: revenue grows 6%, shares jump 11% on earnings beat By Investing.com

UiPath Inc (NYSE:PATH) shares surged 11.05% in after-hours trading following the release of its first quarter fiscal 2026 earnings on May 29, 2025. The automation software provider reported results that exceeded analyst expectations, with revenue growth and improving profitability metrics driving investor enthusiasm. The company's stock closed regular trading at $12.94 before jumping to $14.37 in the extended session, reflecting positive market reception to both the quarterly performance and the company's strategic direction focused on "Agentic Automation." Quarterly Performance Highlights UiPath reported Q1 FY2026 revenue of $357 million, representing a 6% year-over-year increase and exceeding analyst expectations of $332.83 million. The company's Annualized Recurring Revenue (ARR) reached $1.693 billion, growing 12% compared to the same period last year. As shown in the following financial highlights slide: Non-GAAP operating income reached $70 million, translating to a robust 20% operating margin. This represents a significant improvement from the $50.4 million reported in Q1 FY2025. The company's dollar-based net retention rate stood at 108%, indicating strong customer loyalty and expansion. UiPath's ARR has demonstrated consistent growth over multiple quarters, as illustrated in this trend chart: The company's GAAP financial results also showed notable improvement, with operating loss narrowing to $16.4 million from $49.5 million in the prior year period. Cash flow generation remained strong, with GAAP net cash provided by operating activities increasing to $119 million from $100 million year-over-year. On a non-GAAP basis, UiPath maintained healthy gross margins of 84% while improving its operating income and adjusted free cash flow: Strategic Initiatives: Agentic Automation A central focus of UiPath's presentation was its strategic push into "Agentic Automation," which combines artificial intelligence agents with the company's established robotic process automation capabilities. The company outlined its comprehensive framework for this approach: UiPath highlighted several key differentiators for its Agentic Automation platform, including controlled agency, best-in-class automation tools, end-to-end orchestration, and enterprise-grade accuracy and reliability: The company reported strong early adoption metrics for its Agentic Automation offerings, including over 11,000 process instances powered through UiPath Maestro, thousands of agents created, and more than 250,000 agent runs to date: UiPath also introduced its Intelligent eXperience Platform (IXP), currently in private preview, which leverages generative AI to extract information from complex documents and communications: Competitive Industry Position UiPath's presentation emphasized its leadership position in the automation industry, backed by recognition from major analyst firms. The company was positioned as a Leader in the Everest Group Intelligent Document Processing Products PEAK Matrix Assessment 2025: Similarly, UiPath was recognized as a Leader in the IDC MarketScape for Worldwide Business Automation Platforms: The company highlighted its extensive global partner network, which includes major technology companies like Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL) Cloud, AWS, and SAP, as well as global system integrators such as Accenture (NYSE:ACN), Deloitte, and IBM (NYSE:IBM): UiPath's customer momentum continues to build, with notable growth in large accounts. The number of customers with ARR of $100,000 or more increased to 2,365 in Q1 FY2026, up from 2,092 in the same period last year. Customers with ARR of $1 million or more grew to 316, compared to 288 a year ago: Forward-Looking Statements For the second quarter of fiscal 2026, UiPath provided guidance for revenue between $345 million and $350 million, with ARR expected to reach between $1.715 billion and $1.720 billion. Non-GAAP operating income is projected at approximately $40 million. For the full fiscal year 2026, the company forecasts revenue of $1.549 billion to $1.554 billion, ARR of $1.820 billion to $1.825 billion, and non-GAAP operating income of approximately $305 million: According to the earnings call, UiPath views fiscal 2026 as a "foundational year" for its Agentic Automation platform, with CEO Daniel Dines stating that the company has "turned the promise of agentic automation into a powerful reality." The company expects significant revenue contributions from this innovation beginning in fiscal 2027. UiPath's strong Q1 performance, coupled with its strategic focus on AI-driven automation and expanding market presence, positions the company well for continued growth despite competitive pressures in the automation sector. With $1.6 billion in cash on hand and improving profitability metrics, UiPath appears well-equipped to execute on its strategic initiatives while navigating macroeconomic uncertainties. Full presentation: