UiPath Inc Earnings Summary
UiPath Inc, a leader in agentic automation, reported its financial results for the second quarter of fiscal 2026, which ended on July 31, 2025. The company exhibited robust performance, demonstrating impressive growth and strategic advancements that set the stage for future success. The company's ARR reached $1.723 billion, marking an 11% increase compared to the previous year. Additionally, UiPath achieved a revenue of $362 million, up by 14% year-over-year, which reflects the company’s increasing capability in leveraging its advanced automation platform to drive client adoption at scale.
UiPath Inc Results
The following table highlights the key financial metrics for UiPath from its second quarter fiscal 2026 results.
| Metric | Q2 Fiscal 2026 | Year-Over-Year % Change |
|---|---|---|
| Total Revenue | $362 million | +14% |
| ARR | $1.723 billion | +11% |
| GAAP Operating Loss | $(20) million | Not Provided |
| Non-GAAP Operating Income | $62 million | Not Provided |
| Net Cash Flow from Operations | $42 million | Not Provided |
| Non-GAAP Adjusted Free Cash Flow | $45 million | Not Provided |
The company exceeded its high-end guidance across all key financial metrics, demonstrating improved execution and strong market demand for its automation solutions.
Revenue Breakdown
Here is a detailed breakdown of UiPath's revenue performance across its major segments:
| Segment Metric | Q2 Fiscal 2026 | Year-Over-Year % Change |
|---|---|---|
| Revenue from Operations | $362 million | +14% |
| Annualized Renewal Run-rate (ARR) | $1.723 billion | +11% |
| Net New ARR | $31 million | Not Provided |
| Dollar-Based Net Retention Rate | 108% | Not Applicable |
Analysis of Segment Performance
In the second quarter, UiPath’s revenue rose by 14%, highlighting the effectiveness of its business strategy and growing customer base. The ARR, a crucial metric that measures the company’s ability to grow and retain customer subscriptions, increased by 11% to $1.723 billion. This underscores UiPath's ability to secure new customers while maintaining existing relationships. The dollar-based net retention rate stood at 108%, indicating a healthy expansion within its existing customer base.
Key Developments
UiPath continued to make significant strides in its operational strategy during the quarter: - ERP Modernization with Deloitte : As part of advancing its digital transformation initiatives, UiPath collaborated with Deloitte to migrate to SAP S/4HANA. This move marked a leap toward operational excellence, boasting a 93% clean core in solution design. - Leadership Enhancements : The appointment of Michael Atalla as Chief Marketing Officer is set to bolster the company’s global marketing efforts, driving its leadership in agentic AI. - Industry Recognition : For the seventh consecutive year, UiPath was named a Leader in the Gartner® Magic Quadrant™ for Robotic Process Automation. - Strategic Partnership : The partnership with HCLTech aims to accelerate agentic automation across global enterprises, fostering more intelligent operations with minimal human intervention.
Comments from Company Officers
Daniel Dines, UiPath's Founder and CEO, noted, "We delivered a strong second quarter with ARR growing 11% year-over-year...Our continued innovation and best-in-class products are enabling customers across industries to move beyond pilots into production deployments."
Ashim Gupta, Chief Operating Officer and Chief Financial Officer, emphasized, "Our second quarter results reflect strong execution across the business, exceeding the high end of our guidance across all key financial metrics...positions us well as we enter the second half of the year."
Dividends and Share Repurchases
This period of reporting did not include data regarding UiPath's dividend policy or specific plans for share repurchase, indicating a continued focus on reinvesting profits to drive further growth and expansion.
UiPath Inc Stock Forecast
Based on the financial and operational performance, as well as growth prospects, UiPath's stock holds promise for potential investors. Given the reported market cap of approximately $7.26 billion and consistent growth in revenue and ARR, the stock could see significant appreciation. Analysts might estimate a potential high stock price around $22 to $25 within the next year, given continued strategic execution and market expansion. Conversely, the stock could face downward pressure, potentially dipping to the $15 to $18 range, should macroeconomic conditions adversely affect tech stocks or if there are execution challenges.
This detailed analysis paints a picture of a thriving company poised for continued success, rendering it an attractive prospect for those keen to invest in cutting-edge automation technologies. As always, investors should undertake comprehensive due diligence, considering market trends and the company's strategic direction.
