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UiPath
(NYSE:PATH)
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Rating:77Outperform
Price Target:
$12.00
▲(15.27% Upside)
Action:Reiterated
Date:06/30/26
PATH scores well primarily on improving fundamentals—strong cash flow conversion, a low-leverage balance sheet, and a clear shift to profitability. The earnings call reinforces this with upbeat FY27 guidance and AI-driven enterprise deal momentum, partially offset by modest net new ARR and small-customer churn. The main drag on the overall score is technical weakness (below key moving averages with negative MACD), while valuation appears fair with a mid-teens P/E and no dividend support.
Positive Factors
Free Cash Flow Strength
UiPath's consistent TTM free cash flow near $375M and nearly one-to-one conversion with net income indicates durable cash generation. This provides long-term flexibility to fund product R&D, strategic partnerships, buybacks, and weather demand cycles without relying on external financing.
Negative Factors
Modest Net New ARR
Net new ARR of only $49M against a $1.901B base highlights slower incremental customer-base expansion. Over time, modest new ARR can limit top-line growth even with strong retention, making sustained revenue expansion dependent on larger expansions or higher deal velocity.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
UiPath's consistent TTM free cash flow near $375M and nearly one-to-one conversion with net income indicates durable cash generation. This provides long-term flexibility to fund product R&D, strategic partnerships, buybacks, and weather demand cycles without relying on external financing.
Read all positive factors
UiPath Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Tracks how revenue from existing customers changes over time after accounting for expansions, contractions, and churn; a rate above 100% means upsells and cross-sells more than offset losses and indicates healthy land‑and‑expand economics. For UiPath, a high net retention rate suggests sticky automation deployments and predictable growth from the installed base, while a declining rate warns of weakening adoption or pricing pressure.
Tracks how revenue from existing customers changes over time after accounting for expansions, contractions, and churn; a rate above 100% means upsells and cross-sells more than offset losses and indicates healthy land‑and‑expand economics. For UiPath, a high net retention rate suggests sticky automation deployments and predictable growth from the installed base, while a declining rate warns of weakening adoption or pricing pressure.
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The Fly
The FlyUiPath (PATH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.32B
Dividend YieldN/A
Average Volume (3M)44.07M
Price to Earnings (P/E)16.4
Beta (1Y)1.16
Revenue Growth15.24%
EPS GrowthN/A
CountryUS
Employees3,868
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.60
Shares Outstanding453,429,570
10 Day Avg. Volume44,853,712
30 Day Avg. Volume44,073,816
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)3.25
Price to Sales (P/S)4.21
P/FCF Ratio19.24
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.92
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda30.54
Forecast
1Y Price Target
$13.27Price Target Upside27.50% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)0.8
Revenue Forecast (FY)$1.78B
UiPath Business Overview & Revenue Model
Company Description
UiPath Inc. delivers a comprehensive automation ecosystem, specializing in Robotic Process Automation (RPA) solutions, with a significant presence in the United States, Romania, and Japan. The company's integrated software suite empowers organizat...
How the Company Makes Money
UiPath primarily makes money by selling subscriptions to its automation software platform, typically on multi-period contracts with enterprises and public-sector customers. The main revenue stream is recurring subscription revenue from licenses fo...
UiPath Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 08, 2026
Earnings Call Sentiment Positive
The call presented strong execution: revenue acceleration, the company’s first GAAP profitable quarter, meaningful non-GAAP margins and free cash flow, healthy cash reserves and active buybacks, and clear momentum in AI and product launches driving large enterprise deals. Key concerns were modest net new ARR relative to the ARR base, churn concentrated in the smallest customers, and expected FX headwinds. Management framed ARR/revenue timing differences as accounting and mix effects and emphasized continued investment in AI, orchestration, and go-to-market execution. Overall, the positive operating and financial progress, coupled with strong AI-driven deal traction and improved profitability, outweigh the highlighted challenges.Positive Updates
Revenue Growth and Strong Quarter
Reported revenue of $418 million, up 17% year-over-year (15% growth when normalizing for a $7 million FX tailwind). Management noted the quarter beat guidance across key financial metrics.
Negative Updates
Modest Net New ARR Relative to Base
Net new ARR was $49 million, which is modest relative to a $1.901 billion ARR base and may signal slower incremental ARR expansion in the near term.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth and Strong Quarter
Reported revenue of $418 million, up 17% year-over-year (15% growth when normalizing for a $7 million FX tailwind). Management noted the quarter beat guidance across key financial metrics.
Read all positive updates
Company Guidance
UiPath guided Q2 FY27 revenue of $395–$400 million, ARR of $1.929–$1.934 billion, non‑GAAP operating income of approximately $75 million and a basic share count of ~518 million; for full‑year FY27 it expects revenue of $1.776–$1.781 billion, ARR of $2.058–$2.063 billion, non‑GAAP operating income of about $430 million, non‑GAAP adjusted free cash flow of roughly $425 million and non‑GAAP gross margin of ~84%, while noting a nominal incremental FX headwind to ARR and revenue.UiPath Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67B | 1.61B | 1.43B | 1.31B | 1.06B | 892.25M |
| Gross Profit | 1.39B | 1.34B | 1.18B | 1.11B | 878.53M | 723.38M |
| EBITDA | 160.16M | 117.60M | -60.87M | -53.22M | -298.84M | -496.18M |
| Net Income | 327.41M | 282.33M | -73.69M | -89.88M | -328.35M | -525.59M |
Balance Sheet | ||||||
| Total Assets | 2.90B | 3.18B | 2.87B | 2.95B | 2.74B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.31B | 1.47B | 1.63B | 1.88B | 1.76B | 1.87B |
| Total Debt | 83.00M | 81.25M | 77.82M | 67.07M | 63.44M | 51.40M |
| Total Liabilities | 1.00B | 1.10B | 1.02B | 938.64M | 815.05M | 650.53M |
| Stockholders Equity | 1.90B | 2.08B | 1.85B | 2.02B | 1.92B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 375.23M | 352.16M | 305.64M | 291.74M | -33.80M | -68.02M |
| Operating Cash Flow | 384.13M | 371.21M | 320.56M | 299.08M | -9.98M | -54.96M |
| Investing Cash Flow | -55.38M | -22.47M | -45.50M | -439.57M | -289.14M | -35.44M |
| Financing Cash Flow | -389.36M | -372.38M | -450.51M | -196.90M | -60.67M | 1.47B |
UiPath Technical Analysis
Positive
10.41
Price Trends
10.76
Positive
10.94
Positive
12.97
Negative
Market Momentum
0.05
Negative
62.34
Neutral
85.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PATH, the sentiment is Positive. The current price of 10.41 is below the 20-day moving average (MA) of 10.72, below the 50-day MA of 10.76, and below the 200-day MA of 12.97, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PATH.
UiPath Risk Analysis
UiPath disclosed 1 risk factors in its most recent earnings report. UiPath reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.32B | 16.42 | 17.29% | ― | 15.24% | ― | |
76 Outperform | $28.54B | -987.15 | -0.99% | ― | 23.64% | 68.36% | |
69 Neutral | $5.58B | 27.30 | 13.99% | ― | 7.06% | -22.01% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $5.15B | ― | -21.49% | ― | 21.38% | 27.92% | |
56 Neutral | $4.92B | -37.93 | -26.10% | ― | 15.27% | -39.93% |
* Technology Sector Average
PATH
UiPath
11.71
-1.45
-11.02%
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UiPath Corporate Events
Executive/Board ChangesShareholder Meetings
UiPath Shareholders Back Board, Pay and Auditor Decisions
Positive
Jun 29, 2026
At its June 25, 2026 annual meeting, UiPath reported that holders of approximately 93.78% of the voting power of its Class A and Class B shares were represented, constituting a quorum. Shareholders elected seven directors to serve on the board unt...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
UiPath Delivers Strong Q1 Results and First GAAP Profit
Positive
May 28, 2026
UiPath reported first quarter fiscal 2027 results on May 28, 2026, with revenue rising 17% year-on-year to $418 million and annualized recurring revenue reaching $1.901 billion, up 12% from a year earlier as of April 30, 2026. The company delivere...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.