UiPath (PATH) Stock Slides 5% Despite Crushing Earnings on Every Metric

TLDR

• UiPath beat Q4 estimates with EPS of $0.30 vs $0.26 expected, and revenue of $481M vs $465M expected
• The stock fell more than 5% in premarket trading despite the beat
• ARR hit $1.853B at end of January 2026, up 11% year-over-year
• Management disclosed $200M in ARR from AI-related products for the first time
• FY27 revenue guidance of $1.754B–$1.759B came in above the $1.74B consensus

UiPath posted a strong fourth quarter but the market wasn’t impressed. The stock dropped more than 5% in premarket trading Thursday even after the company beat on both revenue and earnings.

UiPath Inc., PATH

For Q4 fiscal 2026, UiPath earned $0.30 per share on an adjusted basis. Revenue came in at $481.11 million. Wall Street had expected $0.26 per share and $464.88 million in revenue.

Full-year revenue for fiscal 2026 came in at $1.611 billion, up 13% year-over-year.

ARR reached $1.853 billion as of January 31, 2026 — an 11% increase from a year ago. Net-new ARR grew 20% on a reported basis but dropped 5% on a constant currency basis.

For the first time, UiPath broke out $200 million in ARR tied specifically to its AI products. That includes its agents, Maestro orchestration platform, and Intelligent Document Processing tools.

CEO Daniel Dines pointed to a semiconductor client that deployed agentic workflows in under two weeks. He also cited One New Zealand, which cut a four-to-five day order-to-cash process down to 10 minutes — and expects $20 million in savings this year.

Guidance Above Consensus, but ARR Growth Concerns Linger

For Q1 fiscal 2027, UiPath guided revenue of $395 million to $400 million. Full-year FY27 revenue guidance came in at $1.754 billion to $1.759 billion, above the $1.74 billion consensus estimate.

The company sees FY27 ARR between $2.051 billion and $2.056 billion — roughly 11% growth at the midpoint, and about 1.6% above consensus.

Profitability Milestone and Buyback

UiPath posted GAAP net income of $282 million for the full fiscal year — the first time in company history it has achieved full-year GAAP profitability.

CFO Ashim Gupta updated the company’s long-term non-GAAP operating margin target to 30%, up from prior guidance. Non-GAAP operating income for FY26 came in at $370 million, a 23% margin.

The company ended Q4 with $1.7 billion in cash and no debt. It completed its $1 billion stock repurchase program during the quarter and authorized a fresh $500 million buyback.

Q4 adjusted free cash flow was $182 million. Full-year free cash flow reached $372 million.

UiPath guided non-GAAP operating income of approximately $415 million for FY27, with non-GAAP gross margin expected at around 84%.

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