UiPath (PATH) Stock Rises 10% on Q3 Earnings Beat and Profitability

TLDR

• UiPath beat Q3 expectations with $0.16 EPS versus $0.15 estimated and revenue of $411.1 million versus $392 million expected.
• The automation company achieved its first GAAP profitable quarter with $13 million operating income and $1.52 billion in cash reserves.
• Annual recurring revenue reached $1.78 billion, up 11% year-over-year, with $59 million in net new ARR.
• Q4 revenue guidance of $462-467 million tops analyst consensus of $463.3 million.
• Shares jumped 10% in after-hours trading following the earnings release.

UiPath stock surged 10% after hours Wednesday following a strong third-quarter earnings report. The automation company beat analyst estimates on both revenue and earnings while posting its first GAAP profitable quarter.

UiPath Inc., PATH

The company reported adjusted earnings of $0.16 per share. Wall Street expected $0.15. Revenue came in at $411.1 million, crushing the $392 million consensus by nearly $20 million. That represents 16% growth from the same quarter last year.

CEO Daniel Dines credited the team’s execution and customer momentum. The company’s annual recurring revenue hit $1.78 billion, growing 11% year-over-year. Net new ARR for the quarter totaled $59 million.

UiPath crossed a key threshold this quarter. The company generated $13 million in GAAP operating income, marking its first profitable quarter under standard accounting rules. Non-GAAP operating income reached $88 million.

Strong Balance Sheet and Customer Metrics

The company holds $1.52 billion in cash, cash equivalents, and marketable securities. CFO Ashim Gupta said UiPath exceeded guidance across every metric.

Customer retention remains healthy. The dollar-based net retention rate stood at 107%, showing existing customers are expanding their use of the platform. This metric tracks how much revenue the company generates from its current customer base over time.

UiPath has been expanding its technology partnerships. Recent integrations include Microsoft Azure AI Foundry, OpenAI, Google’s Gemini models, and NVIDIA. These partnerships help enterprises deploy automation solutions across their operations.

Looking Ahead to Q4

Fourth-quarter revenue guidance came in between $462 million and $467 million. The midpoint of $464.5 million beats the analyst consensus of $463.3 million. The guidance suggests continued momentum heading into the final quarter of fiscal 2026.

The stock gained 17% year-to-date through Wednesday’s regular session. The after-hours pop adds another 10% to those gains. Many AI-related stocks have performed better in 2025, but UiPath’s profitability milestone could change investor sentiment.

UiPath trades at 17.6 times operating cash flow. That’s well below its five-year average multiple of 39.1. The valuation discount may appeal to investors looking for AI exposure at reasonable prices.

Gartner named UiPath a Leader in its Magic Quadrant for Intelligent Document Processing and AI-Augmented Software Testing Tools. These industry recognitions validate the company’s technology position.

Adjusted EPS grew 45% year-over-year in Q3. Revenue growth of 16% outpaced ARR growth of 11%, indicating the company is converting its pipeline efficiently. The company expects Q4 revenue of $462-467 million with guidance topping Street estimates.

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