NEW YORK, July 15, 2026, 08:07 EDT
- UiPath landed a three-year deal to develop an AI-driven pricing platform for The Very Group, the UK-based online retailer. Terms were not given.
- UiPath is guiding for $124 million to $134 million in net new ARR for the back half of fiscal 2027, right near the $129 million it posted in the second half last year.
- Shares ended Tuesday at $11.94, up 0.8%. Turnover hit 85.8 million shares, close to double the 65-day average.
UiPath Inc. NYSE:PATH landed a three-year deal to revamp pricing at The Very Group, the UK online retailer, though the company didn’t disclose financials. For investors, the real question is whether the win helps PATH drive the subscription growth it needs in the second half. The automation software firm’s guidance for fiscal 2027 calls for $124 million to $134 million in net new ARR over Q3 and Q4. That’s right around the $129 million it managed in those periods last year.
As of April 30, ARR was $1.901 billion. The company sees guidance at $1.929 billion to $1.934 billion for July 31, meaning second quarter ARR gains would be $28 million to $33 million, a slowdown from the $49 million it added in Q1. To hit the January goal of $2.058 billion to $2.063 billion, UiPath would need to average $62 million to $67 million in ARR growth for each remaining quarter. That’s the tough part.
Net new ARR jumped from $31 million in Q2 fiscal 2026 to $59 million in Q3 and then $70 million in Q4, according to company filings. That’s a sharp climb, but it matches the pattern set last year.
| ARR bridge, $ million | FY2026 actual | FY2027 actual or guide |
|---|---|---|
| Q1 net new ARR | 27 | 49 |
| Q2 net new ARR | 31 | 28–33 implied |
| Q3 and Q4 net new ARR | 129 | 124–134 needed |
| Year-end ARR | 1,853 | 2,058–2,063 target |
Very picked UiPath after a competitive review. The planned platform will run promo simulations, test price ideas, cut manual tasks for staff, and help managers track margins and stock. Agentic AI here refers to software handling steps in a workflow with rules and controls. “We have a range of over 200,000 products and pricing is one of the most powerful levers in retail,” Very’s chief commercial officer Sam Wright said. UiPath
The customer’s numbers help explain why that use case matters. Very’s most recent figures, for the 39 weeks ending March 28, had revenue up slightly but retail sales fell and gross margin got wider.
| Very Group metric | Reported result | Year-on-year change |
|---|---|---|
| Group revenue | £1.608 billion | up 0.3% |
| Retail sales | £1.241 billion | down 1.6% |
| Statutory gross margin | 35.7% | added 0.6 percentage point |
One basis point equals 0.01 percentage point. If you run a quick calculation and apply 10 basis points to Very’s £1.2413 billion in retail sales, you get around £1.24 million. This isn’t a projection—Very’s reported margin includes other revenue not counted in its retail-sales tally. Still, even minor pricing tweaks start to matter in pound terms at this size.
Neither party gave details on subscription value, mix, or billing for the contract. For reference, annualized subscription between $2.8 million and $3.3 million would make up about 10% of net new ARR in UiPath’s Q2 outlook. That’s just a threshold, not a projection, as rollout and services timing could shrink ARR or push it to later quarters.
UiPath’s first-quarter numbers give it some breathing room as it waits for contracts to scale. Revenue grew 17% to $418 million. The company reported $28 million in operating income on a GAAP basis, with adjusted free cash flow at $130 million. Dollar-based net retention went up to 109%. CEO Daniel Dines said the firm’s agentic products are “moving from pilot to production.” UiPath, Inc.
Shares traded at $11.95 ahead of the open at 8:00 a.m. EDT, nearly flat from the Tuesday close of $11.94, which was up 0.8%. Volume hit 85.8 million, almost double the 65-day average. The small gain on high volume kept valuation signals unclear after the news.
But the system can help Very get more pricing power without having a major impact on UiPath’s numbers. A drawn-out rollout, less focus on subscriptions, or a services-led deal could hold back ARR figures. Retail pricing still needs oversight and manual review. UiPath’s filings mention risks like customer retention, rivals, shifting AI regulation, and reliance on third-party cloud and LLM providers.
The July 31 ARR number will signal if the second quarter is in the $28 million to $33 million range suggested earlier. For now, the Very award looks like a clear enterprise deployment for margin-sensitive work, but it isn’t evidence UiPath has hit its $124 million to $134 million target for the second half yet.
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