UiPath (PATH) AI Stock Analysis

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UiPath

(NYSE:PATH)

67Neutral

UiPath's overall stock score reflects its strong financial growth and cash flow management, which are tempered by ongoing net losses and negative profitability. Technical analysis indicates bearish trends, and valuation concerns persist due to negative earnings. Positive momentum from strategic innovations and partnerships is offset by challenges in the macroeconomic environment and public sector. These factors lead to a moderate score, suggesting cautious optimism with potential for improvement if profitability is achieved.

Positive Factors

Cloud ARR Growth

Encouragement was found in the cloud ARR of $975M, representing over half of ARR and showing growth.

Strategic Vision

UiPath reiterated their new strategic vision for agentic orchestration combining agents, robots, data, and people into end-to-end workflows.

Valuation

With shares near 52-week lows and current valuation implying 3x CY26E sales and 12x CY26E FCF, investors are getting a good price for what is still seen as a durable software asset creating value for global enterprises.

Negative Factors

Federal Sector Exposure

PATH is particularly subject to federal government spend cuts and uncertainty over the next several quarters due to its significant exposure to the public sector.

Macroeconomic Challenges

Concerns exist about PATH's durable growth rate given the growth of various agentic solutions, the competitive landscape, and a challenging macro environment including the risk in the public sector.

Performance and Guidance

PATH had a lackluster quarter, missing reported ARR and revenue estimates, and provided disappointing FY26 guidance that is back-end weighted.

UiPath (PATH) vs. S&P 500 (SPY)

Market Cap

$6.55B

Dividend YieldN/A

Average Volume (3M)14.03M

Price to Earnings (P/E)―

Beta (1Y)1.79

Revenue Growth9.30%

EPS Growth20.59%

CountryUS

Employees3,868

SectorTechnology

Sector Strength69

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.13

Shares Outstanding474,040,160

10 Day Avg. Volume11,687,592

30 Day Avg. Volume14,025,992

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.97

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.36

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.97

Price Target Upside0.00%

Rating ConsensusHold

Number of Analyst Covering21

UiPath Business Overview & Revenue Model

Company DescriptionUiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform combines artificial intelligence with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, which enables users to discover, analyze, and identify processes to automate in a centralized portal; offers low-code development environments that allows users in an organization to create attended and unattended automations without any prior knowledge of coding; deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications; offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; allows customers to manage long running processes that orchestrate work between robots and humans; and enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards. In addition, the company provides maintenance and support for its software, as well as professional services, such as training and implementation services to facilitate the adoption of its platform. It serves banking, healthcare, financial services, and government entities. UiPath Inc. was founded in 2005 and is headquartered in New York, New York.

How the Company Makes MoneyUiPath generates revenue primarily through the sale of software licenses for its RPA platform. The company's core revenue streams include subscription fees for its cloud-based automation services and on-premises software licenses. Additionally, UiPath offers professional services such as consulting, implementation, and training, which contribute to its overall earnings. The company has established significant partnerships with major technology providers, consulting firms, and system integrators, which help drive sales and expand its market reach. UiPath's focus on continuous innovation and expanding its product offerings also plays a critical role in maintaining its competitive edge and financial performance.

UiPath Key Performance Indicators (KPIs)

Any

Annual Renewal Run Rate

Annual Renewal Run Rate
Measures the expected annual revenue from renewals, highlighting customer retention strength and the stability of recurring revenue streams, crucial for assessing long-term growth and financial health.

Chart InsightsUiPath's Annual Renewal Run Rate has shown consistent growth, reflecting strong customer retention and expansion. Despite challenges highlighted in the earnings call, such as public sector uncertainties and macroeconomic volatility, the company remains focused on innovation and strategic partnerships. The projected ARR growth for fiscal 2026 suggests confidence in overcoming these hurdles, supported by new product launches and enhanced operational efficiency. Investors should note the robust cloud ARR growth, which underscores a strategic shift towards cloud solutions, potentially driving future revenue streams.

Data provided by:

Main Street Data

UiPath Financial Statement Overview

Summary

UiPath's financial performance reflects strong revenue growth, effective cost management, and solid cash flow generation. However, persistent net losses and negative profitability ratios are areas of concern. The balance sheet remains strong with low leverage and ample liquidity, mitigating financial risks. Overall, while profitability is a challenge, the company's growth and cash flow position it well for future improvement.

Income Statement

Positive

UiPath has demonstrated consistent revenue growth with a substantial increase of approximately 34.5% from 2023 to 2024 and 9.3% from 2024 to 2025. Despite this growth, the company remains unprofitable with a negative net profit margin of -5.2% in 2025, although this has improved from previous years. The gross profit margin is strong at 82.7%, indicating effective cost management on direct expenses. However, negative EBIT and EBITDA margins suggest challenges in covering operating expenses.

Balance Sheet

Positive

The balance sheet shows a healthy equity position, with an equity ratio of 64.4% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.04, suggesting minimal leverage risk. However, the return on equity is negative, reflecting ongoing net losses. The company has significant cash reserves, providing a buffer against financial uncertainties.

Cash Flow

Positive

UiPath has shown a positive trend in operating cash flows, with a robust operating cash flow to net income ratio exceeding 4 in 2025, indicating good cash generation relative to reported losses. Free cash flow has also improved, showing positive growth. The company's ability to generate cash flow despite net losses is a key strength.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
1.43B	1.31B	1.06B	892.25M	607.64M
	Gross Profit
1.18B	1.11B	878.53M	723.38M	541.79M
	EBIT
-162.57M	-164.72M	-348.28M	-500.95M	-110.32M
	EBITDA
-162.57M	-141.70M	-329.56M	-486.24M	-90.72M
	Net Income Common Stockholders
-73.69M	-89.88M	-328.35M	-525.59M	-92.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.63B	1.88B	1.76B	1.87B	460.52M
	Total Assets
2.87B	2.95B	2.74B	2.57B	866.46M
	Total Debt
77.82M	67.07M	63.44M	51.40M	20.08M
	Net Debt
-801.38M	-994.61M	-1.34B	-1.72B	-337.61M
	Total Liabilities
1.02B	938.64M	815.05M	650.53M	1.67B
	Stockholders Equity
1.85B	2.02B	1.92B	1.92B	-803.70M
Cash Flow		Free Cash Flow
305.64M	291.74M	-33.80M	-68.02M	25.98M
	Operating Cash Flow
320.56M	299.08M	-9.98M	-54.96M	29.18M
	Investing Cash Flow
-45.50M	-439.57M	-289.14M	-35.44M	-125.99M
	Financing Cash Flow
-450.51M	-196.90M	-60.67M	1.47B	250.42M

UiPath Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price11.97

Price Trends

50DMA

11.24

Positive

100DMA

12.54

Negative

200DMA

12.56

Negative

Market Momentum

MACD

0.20

Negative

RSI

62.01

Neutral

STOCH

94.71

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Neutral. The current price of 11.97 is above the 20-day moving average (MA) of 10.90, above the 50-day MA of 11.24, and below the 200-day MA of 12.56, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 94.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PATH.

UiPath Risk Analysis

UiPath disclosed 68 risk factors in its most recent earnings report. UiPath reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

UiPath Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACIW	79 Outperform	$5.77B	28.66	14.78%	―	9.76%	73.38%
CCCS	68 Neutral	$6.05B	226.11	1.38%	―	9.05%	―
PATH	67 Neutral	$6.55B	―	-3.82%	―	9.30%	20.59%
S	64 Neutral	$6.22B	―	-17.68%	―	32.25%	20.56%
INFA	61 Neutral	$6.62B	630.36	0.44%	―	2.81%	―
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
CFLT	55 Neutral	$6.75B	―	-34.18%	―	24.11%	21.87%

* Technology Sector Average

Performance Comparison

PATH

UiPath

11.97

-7.88

-39.70%

ACIW

ACI Worldwide

54.84

19.33

54.44%

CCCS

CCC Intelligent Solutions Holdings

9.26

-1.65

-15.12%

CFLT

Confluent

19.82

-8.81

-30.77%

SentinelOne

18.88

-2.81

-12.96%

INFA

Informatica

19.10

-10.91

-36.35%

UiPath Earnings Call Summary

Earnings Call Date:Mar 12, 2025

(Q4-2025)

% Change Since: 1.18%|

Next Earnings Date:May 28, 2025

Earnings Call Sentiment Neutral

UiPath demonstrated solid financial performance with strong revenue and ARR growth, profitability, and notable product innovations. However, challenges in the public sector, macroeconomic volatility, and currency headwinds present concerns. While the highlights show positive business momentum, the lowlights indicate areas of caution impacting future growth projections.

Q4-2025 Updates

Positive Updates

Revenue Growth

UiPath delivered revenue of $424 million for the fourth quarter, with a total revenue of $1.43 billion for fiscal year 2025, marking an increase of 9% year-over-year.

ARR Increase

Annual Recurring Revenue (ARR) reached $1.666 billion, an increase of 14% year-over-year.

Cloud ARR Growth

Cloud ARR grew over 50% year-over-year, reaching over $975 million.

GAAP Profitability

Achieved GAAP profitability for the second year in a row with a GAAP operating income of $34 million.

Non-GAAP Operating Margin Improvement

Non-GAAP operating margin improved by over 400 basis points year-over-year to 32%.

Innovation and Product Launches

Launched several innovative products and capabilities in fiscal 2025, including Autopilot, Agent Builder, Agentic Orchestration, and more.

Strategic Partnerships

Strengthened partnerships with Deloitte and Microsoft to integrate UiPath's automation with leading platforms.

Negative Updates

Public Sector Challenges

Transition in the U.S. government created short-term uncertainty for deal closures, impacting ARR expectations.

Macroeconomic Volatility

Increased volatility in the macroeconomic environment, particularly in the last two weeks, caused uncertainty around customer budgets.

FX Headwinds

Foreign exchange rates contributed a $2 million headwind to revenue, impacting financial results.

Flat Customer Count

Total customer count remained flat year-over-year after normalizing for customer hierarchy changes.

Company Guidance

During the UiPath Fourth Quarter 2025 Earnings Conference Call, the company provided guidance for fiscal 2026, highlighting several key metrics and strategic priorities. UiPath reported a fourth-quarter revenue of $424 million, which would have been $426 million excluding a $2 million foreign exchange headwind, and ended the year with an annual recurring revenue (ARR) of $1.666 billion, marking a 14% increase year-over-year. For fiscal 2026, UiPath projects revenue between $1.525 billion and $1.530 billion, with ARR expected to reach $1.816 billion to $1.821 billion. The first quarter of fiscal 2026 is forecasted to generate revenue between $330 million and $335 million and ARR between $1.686 billion and $1.691 billion. The company anticipates a non-GAAP operating income of approximately $270 million for the full year and $45 million for the first quarter. Despite short-term headwinds from geopolitical factors and public sector transitions impacting deal closures, UiPath remains focused on three strategic priorities: accelerating innovation, increasing customer adoption, and driving operational efficiency. The company also announced a significant investment in their agentic platform and product offerings, including the launch of new solutions like Agentic Orchestration and Agentic Testing, contributing to their goal of long-term growth and operational success.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.