UiPath (PATH) Stock Jumps 10% After Earnings Beat and First Profitable Quarter

TLDR

• UiPath reported Q3 fiscal 2026 earnings of $0.16 per share, beating analyst estimates of $0.15, while revenue hit $411.1 million versus expected $392 million.
• Annual recurring revenue grew 11% year-over-year to $1.78 billion with net new ARR of $59 million for the quarter.
• The company posted its first GAAP profitable quarter with $13 million in operating income and holds $1.52 billion in cash and marketable securities.
• Q4 revenue guidance of $462-467 million slightly exceeds analyst consensus of $463.3 million.
• Stock surged approximately 10% in after-hours trading following the earnings announcement.

UiPath shares climbed around 10% in after-hours trading Wednesday after the automation company delivered third-quarter results that topped Wall Street expectations. The stock had already gained 3.9% during regular trading hours.

UiPath Inc., PATH

The company reported adjusted earnings of $0.16 per share for Q3 fiscal 2026. Analysts had expected $0.15. Revenue reached $411.1 million, up 16% from last year and well above the $392 million consensus estimate.

CEO Daniel Dines pointed to the company’s execution and growing customer adoption. UiPath’s annual recurring revenue hit $1.78 billion, growing 11% year-over-year. The company added $59 million in net new ARR during the quarter.

The automation platform achieved a milestone this quarter. UiPath posted its first GAAP profitable third quarter with operating income of $13 million. Non-GAAP operating income came in at $88 million.

CFO Ashim Gupta said the company exceeded guidance across all metrics. The balance sheet remains strong with $1.52 billion in cash, cash equivalents, and marketable securities.

Customer Growth Metrics

UiPath’s dollar-based net retention rate stood at 107%. This metric shows the company continues expanding business with existing customers. It indicates clients are finding value in the platform and increasing their spending.

The company has been building out its technology partnerships. Recent integrations include Microsoft Azure AI Foundry, OpenAI, Google’s Gemini models, and NVIDIA. These partnerships expand the platform’s capabilities for enterprise customers.

Gartner recognized UiPath as a Leader in its Magic Quadrant for Intelligent Document Processing. The company also earned Leader status for AI-Augmented Software Testing Tools.

Q4 Guidance

UiPath expects fourth-quarter revenue between $462 million and $467 million. The midpoint of $464.5 million edges out the analyst consensus of $463.3 million. This guidance suggests the company’s momentum continues into the final quarter of its fiscal year.

The stock has gained 17% year-to-date through regular trading Wednesday. That performance lags many other AI-related stocks in 2025. The after-hours jump narrows that gap.

UiPath trades at 17.6 times operating cash flow. That represents a discount to its five-year average multiple of 39.1. The valuation suggests room for upside if the company maintains its profitable trajectory.

The company’s automation platform helps enterprises deploy AI agents across their operations. Demand for these solutions appears to be accelerating as businesses look for ways to improve efficiency.

UiPath generated adjusted EPS growth of 45% year-over-year in Q3. Revenue growth of 16% outpaced ARR growth of 11%, showing the company is converting pipeline into actual sales.

The company now expects Q4 revenue of $462-467 million with the midpoint slightly above analyst expectations of $463.3 million.

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