UiPath Inc. (NYSE: PATH) has exploded higher this week, riding a wave of AI enthusiasm and a strong Q3 FY26 earnings report that beat Wall Street expectations. As of December 5, 2025, the stock is trading around its 52‑week high, yet most analysts still rate it a “Hold” and see limited upside from here.
Below is a detailed, news-driven look at UiPath’s latest results, stock performance, and Wall Street forecasts as of 05.12.2025 (5 December 2025).
UiPath stock today: rally to new 52‑week highs
Several data providers now show UiPath at or near fresh one‑year highs:
- Investing.com reports the stock reached a new 52‑week high, closing at $18.78, up roughly 24.8% over the past year, 33.3% over the past week, and about 45.4% year‑to‑date. [1]
- MarketBeat notes an intraday high of $18.98 and a last trade around $18.52, implying a market capitalization near $9.8 billion. [2]
- StockAnalysis.com shows PATH trading around $18.67 midday on December 5. [3]
Research firm Trefis estimates UiPath shares have climbed roughly 61% from about $11.50 in early September to around $18.50, driven mostly by multiple expansion rather than explosive revenue growth. Trefis calculates last‑twelve‑month revenue up just 3.1%, while the stock’s price‑to‑sales multiple expanded from 4.3x to 6.6x. [4]
In short: PATH has staged a powerful re‑rating rally as investors re‑embrace AI automation, even though fundamental growth has been solid rather than spectacular.
Q3 FY26: clean beat and first GAAP‑profitable third quarter
UiPath’s third quarter of fiscal 2026 (ended October 31, 2025) is the core catalyst behind the move.
According to UiPath’s official earnings release and independent coverage: [5]
- Revenue:
- $411 million, +16% year‑over‑year, and ahead of consensus estimates around $393 million.
- Annualized recurring revenue (ARR):
- $1.782 billion, up 11% year‑over‑year.
- Dollar‑based net retention:
- 107%, indicating existing customers are expanding their spend.
- Profitability:
- GAAP operating income: $13 million (first GAAP‑profitable Q3 in company history).
- Non‑GAAP operating income: $88 million.
- GAAP gross margin: ~83%; non‑GAAP gross margin: ~85%.
- Cash & liquidity:
- $1.52 billion in cash, cash equivalents and marketable securities.
- Operating cash flow and non‑GAAP free cash flow both around $28 million.
CEO Daniel Dines highlighted that demand is being driven by enterprises looking for a single unified automation platform that blends traditional deterministic automation with “agentic” AI‑driven workflows and orchestration, rather than a collection of point tools. [6]
A Benzinga market wrap described the print as a “clean beat‑and‑raise quarter”, noting accelerated revenue growth, ARR above expectations, and clear evidence of rising demand for AI agents and enterprise automation workflows. [7]
Q4 and 2026 outlook: steady double‑digit growth, rising EPS
UiPath’s guidance and consensus forecasts suggest healthy, though moderating, growth:
Company Q4 FY26 guidance (for the quarter ending January 31, 2026): [8]
- Revenue: $462–$467 million
- ARR (end of Q4): $1.844–$1.849 billion
- Non‑GAAP operating income: about $140 million
Street‑level forecasts compiled by StockAnalysis project: [9]
- Revenue FY26 (current year):
- ~$1.61 billion, up about 12.3% from $1.43 billion.
- Revenue FY27 (next year):
- ~$1.75 billion, up 8.8% from FY26.
- EPS FY26:
- Forecast around $0.67, up from ‑$0.13 (a swing to profitability on a full‑year basis).
- EPS FY27:
- Forecast around $0.76, implying ~12% EPS growth.
At current prices, StockAnalysis estimates a forward P/E near the high‑20s on FY26 EPS, falling into the mid‑20s on FY27 estimates. [10]
MarketBeat, which focuses on GAAP earnings, notes consensus expectations for a full‑year GAAP EPS around ‑$0.17, underlining the ongoing gap between GAAP and non‑GAAP profitability as stock‑based compensation and other adjustments remain significant. [11]
AI & “agentic automation”: partnerships paint a strategic moat
Beyond the numbers, UiPath is aggressively positioning itself at the center of the enterprise AI automation stack.
Recent announcements from the company and independent coverage highlight: [12]
- Agentic automation platform upgrades:
UiPath introduced new platform capabilities focused on “agentic” automation & orchestration—pre‑built solutions, enhanced governance, and tools for building and testing AI agents at scale. - Microsoft Azure AI Foundry integration:
UiPath agents can now orchestrate end‑to‑end workflows alongside Azure AI Foundry agents and models, using the Model Context Protocol (MCP) and tying into Microsoft 365 Copilot and Copilot Studio. - OpenAI collaboration:
UiPath is building a ChatGPT connector that pipes OpenAI’s frontier models into enterprise workflows under UiPath’s orchestration and governance layer. - Google & conversational AI:
The UiPath Conversational Agent, powered by Google’s Gemini models, enables voice‑driven agentic workflows without heavy custom coding. - NVIDIA partnership:
Joint work with NVIDIA aims to bring AI into high‑trust workflows—like fraud detection or healthcare care management—using Nemotron models and NVIDIA NIM microservices. - Snowflake integration:
A partnership with Snowflake Cortex AI allows businesses to turn data insights into automated actions via agentic workflows.
The company has also racked up a series of third‑party endorsements:
- Named a Leader in Gartner’s Magic Quadrants for Intelligent Document Processing and AI‑Augmented Software Testing Tools. [13]
- The UiPath platform was included in TIME’s “Best Inventions of 2025” list. [14]
- Achieved ISO/IEC 42001:2023 certification, one of the first global AI management system standards. [15]
Analysts at Investing.com and others have highlighted these partnerships and technical credentials as key reasons UiPath is seen as one of the more credible platforms in AI‑driven automation, even as competition intensifies. [16]
Wall Street view: powerful rally meets cautious “Hold” consensus
Despite the sharp move higher, UiPath is not a consensus “Buy” on Wall Street.
Ratings and targets
- StockAnalysis (16 analysts):
- Consensus rating: Hold
- Average 12‑month price target: $15.06
- Target range: $10 – $19
- Implied downside vs. ~$18.7 share price: about ‑19%. [17]
- MarketBeat:
- 2 Buy, 14 Hold, 2 Sell ratings.
- Consensus rating: “Hold”
- Average target: $15.64, also below today’s price. [18]
- Public.com (14 analysts):
- 7% Strong Buy, 7% Buy, 79% Hold, 7% Sell.
- Average target: $15.07 as of December 5, 2025. [19]
In other words, most analysts acknowledge the Q3 beat and strategic progress—but see limited upside from current levels after the recent run.
Fresh price target hikes after Q3
Following the earnings release, a wave of firms lifted their price targets: [20]
- Truist Securities:
- Rating: Hold
- Price target raised from $12 → $17, just below current trading levels.
- Notes strong traction in “agentic” capabilities, with about 365,000 processes orchestrated via UiPath Maestro and 950 customers actively developing agents.
- Wells Fargo: Equal‑Weight, PT $12 → $14.
- Mizuho: Neutral, PT $14 → $15.
- Canaccord Genuity: Buy, PT $15 → $19 (one of the more bullish calls).
- Evercore ISI: In‑Line, PT $15 → $17.
- RBC Capital: Sector Perform, PT $14 → $16.
- BMO Capital Markets: Market Perform, PT $13 → $17.
- BofA Securities: Underperform, PT lifted to $14.
- TD Cowen: PT $13 → $16, citing better execution after sales restructuring.
- UBS: Neutral, PT $17, describing the quarter as “modestly better than expected” but flagging pressure on net new ARR.
A separate note carried by Nasdaq shows RBC’s aggregated model estimating a one‑year fair value around $13.80, implying downside versus earlier prices, and projecting $1.657 billion in revenue (+6.7%) and $0.40 in non‑GAAP EPS (+60% vs prior forecast). [21]
Taken together, the Street’s message is: great quarter, better execution, but valuation is now demanding.
Technical and sentiment signals: momentum vs. insider selling
Recent coverage highlights a mix of positive momentum indicators and pockets of caution:
- Momentum & valuations
- UiPath’s trailing P/E ~43.7 and P/E/G ~5.5 (MarketBeat) reflect a high‑growth software valuation. [22]
- Investing.com and InvestingPro describe the stock as having “strong momentum” but potentially slightly overvalued at current levels. [23]
- Trefis explicitly attributes roughly 52 percentage points of the 61% price move to multiple expansion rather than revenue growth, and currently views the stock as “fairly priced” after the rally. [24]
- Insider activity
- MarketBeat reports insiders sold about 2.32 million shares worth $34.1 million over the last 90 days, including sales by the CFO and CEO, though insiders still own roughly 23% of the company. [25]
- Institutional positioning
- A Fintel/Nasdaq note cites 731 institutional holders, together owning over 320 million shares, but with institutional ownership modestly down over the last quarter, even as average portfolio weight in PATH ticked higher. [26]
For momentum traders, PATH looks like a classic AI winner in breakout mode; for value‑oriented investors, the heavy insider selling and rich multiple are notable yellow flags.
Bulls vs. bears: what the latest analyses are actually saying
Public.com usefully summarizes the core bull and bear arguments being made in recent analyst reports: [27]
Bulls say
- Revenue growth remains solid, with recent periods showing low‑ to mid‑teens year‑over‑year growth, driven by subscription revenue expanding faster than the total.
- Current remaining performance obligations (cRPO) of roughly $789 million, up about 15%, signal healthy future revenue visibility.
- Enterprises are still early in the adoption curve for AI agents and end‑to‑end automation platforms, where UiPath is arguably one of the best‑positioned independent players.
- Strong gross margins (~83–85%) and improving non‑GAAP operating leverage suggest the business can grow profitably as it scales.
Bears say
- Operating cash flow has shown period‑on‑period pressure (one recent quarter saw a ~10% decline and margin compression), raising questions about the durability of cash generation at current growth rates. [28]
- Some models project net new ARR to decline in later years (e.g., FY27), pointing to a gradual slowdown as UiPath matures and competition intensifies. [29]
- ARR growth has decelerated from the hyper‑growth years, and license revenue in certain recent periods came in flat year‑over‑year and below estimates. [30]
- After a multi‑month, 60%+ rally, the stock is priced for continued flawless execution and robust AI‑driven demand, leaving little room for disappointment.
Trefis adds another risk angle: during a prior inflation shock, PATH fell nearly 88% from peak to trough—proof that, despite a strong long‑term story, the stock can be extremely volatile in risk‑off markets. [31]
Macro and thematic tailwinds: AI, robotics and policy
A fresh Zacks Investment Ideas feature groups UiPath with Tesla, Honeywell and Teradyne as key names in the coming wave of AI‑driven robotics and automation, arguing that policy makers are pushing for productivity gains and “physical AI” (robots and automation) as the next leg of the AI cycle. [32]
That narrative dovetails with UiPath’s core pitch: it’s not selling a general‑purpose chatbot, but a platform for applying AI to business processes—a segment many investors expect to compound over years, not quarters.
Valuation snapshot and risk‑reward on 05.12.2025
Pulling the pieces together:
- Share price: roughly $18.5–$18.8
- Consensus 12‑month PT: clustered around $15–$16, implying near‑ to mid‑teens downside on average. [33]
- Growth: high‑single‑ to low‑teens revenue growth expected into FY27, with EPS inflecting positive and growing around 12% per year in some models. [34]
- Profitability: exceptional gross margins, improving non‑GAAP operating margins, but GAAP earnings still modest and sensitive to equity‑based compensation. [35]
- Strategic position: reinforced by a rich ecosystem of partnerships (Microsoft, OpenAI, Google, NVIDIA, Snowflake) and strong third‑party validation (Gartner, TIME, ISO 42001). [36]
- Risks: slowing ARR growth, projected net‑new ARR pressure, fierce competition in AI automation, valuation, insider selling, and macro volatility. [37]
For now, the market is clearly voting “yes” on UiPath’s AI automation story, but Wall Street is effectively saying “prove it over time” with a broad Hold stance and price targets that lag the current share price.
What this means for investors
This article is not investment advice, but a few practical takeaways are emerging from current research and commentary:
- Momentum investors are likely to focus on the breakout: PATH has strong price and volume action post‑earnings, sits near 52‑week highs, and is a high‑beta way to express a view on enterprise AI automation. [38]
- Fundamental and long‑term investors may pay closer attention to:
- Whether UiPath can sustain double‑digit ARR growth while keeping dollar‑based net retention above 100%. [39]
- How quickly GAAP profitability scales relative to non‑GAAP metrics.
- The pace of agentic automation adoption and evidence that UiPath’s partnerships are converting into durable, high‑margin revenue.
- Valuation‑sensitive buyers might wait for either:
- A pullback closer to consensus fair value, or
- Clearer signs that growth and profitability are inflecting faster than current forecasts imply.
As always, potential investors should consider their own risk tolerance, time horizon, and portfolio diversification, and consult a qualified financial adviser before making decisions.
References
1. www.investing.com, 2. www.marketbeat.com, 3. stockanalysis.com, 4. www.trefis.com, 5. ir.uipath.com, 6. ir.uipath.com, 7. www.benzinga.com, 8. ir.uipath.com, 9. stockanalysis.com, 10. stockanalysis.com, 11. www.marketbeat.com, 12. ir.uipath.com, 13. ir.uipath.com, 14. ir.uipath.com, 15. ir.uipath.com, 16. www.investing.com, 17. stockanalysis.com, 18. www.marketbeat.com, 19. public.com, 20. www.benzinga.com, 21. www.nasdaq.com, 22. www.marketbeat.com, 23. www.investing.com, 24. www.trefis.com, 25. www.marketbeat.com, 26. www.nasdaq.com, 27. public.com, 28. public.com, 29. public.com, 30. public.com, 31. www.trefis.com, 32. www.nasdaq.com, 33. stockanalysis.com, 34. stockanalysis.com, 35. ir.uipath.com, 36. ir.uipath.com, 37. public.com, 38. www.marketbeat.com, 39. ir.uipath.com
