NEW YORK, July 22, 2026, 04:14 EDT
- UiPath finished the session at $12.04, slipping 1.0% with 177 million shares traded.
- Guidance for the second quarter suggests an early ARR increase of $30.5 million compared to the previous quarter.
- Pegasystems NASDAQ:PEGA cautioned about postponed buying activity; ServiceNow NYSE:NOW is scheduled to publish results on Wednesday.
UiPath NYSE:PATH is set to contend with a moderate renewal run-rate target for its fiscal second quarter. The firm’s metric, known as ARR, is projected at the guidance midpoint to reflect a $30.5 million increase from the previous quarter.
The projection is roughly 38% lower than the figure for the first quarter, but is close to the $31 million net-new ARR recorded a year ago.
Reaching the midpoint would maintain yearly ARR growth close to 12.1%. This on its own does not demonstrate a pickup in agentic demand.
Shares ended Tuesday at $12.04, declining 1.0%, with 177 million shares changing hands. That volume represented roughly 39% of the May 29 outstanding Class A shares. A single share can be traded multiple times.
UiPath underperformed the Nasdaq Composite, which climbed 1.3%. However, the stock advanced 0.8% between July 14 and Tuesday. U.S. regular trading had ended at the time of publication; premarket activity had started.
| Selected period | Ending ARR | Net-new or implied sequential ARR | Year-on-year ARR growth |
|---|---|---|---|
| Q2 fiscal 2026 | $1.723 billion | $31 million | 11.0% |
| Q4 fiscal 2026 | $1.853 billion | $70 million | 11.0% |
| Q1 fiscal 2027 | $1.901 billion | $49 million | 12.0% |
| Q2 fiscal 2027 guidance midpoint | $1.932 billion | $30.5 million | 12.1% |
Initial estimates based on approximate company projections and stated ARR.
The year-ago comparison moderates the visible sequential deceleration. The midpoint is similar to the second-quarter increase from last year. A significant outperformance would give clearer proof of accelerated uptake.
Chief Executive Daniel Dines stated in May that agentic products are “moving from pilot to production.” Revenue grew 17% in the first quarter, and ARR increased by 12%. Net retention stood at 109%. SEC
UiPath reported GAAP operating income of $28 million, marking its first profitable Q1. The company had $1.42 billion in cash and marketable securities.
Pegasystems posted a 7% increase in ACV and a 22% jump in cloud ACV on Tuesday. The company stated the evolving AI market caused customers to postpone buying decisions. It cautioned these delays could impact growth for the remainder of 2026.
Pegasystems stock fell roughly 16% in after-hours trading as of 4:07 a.m. EDT. The company’s earnings call is set for 8 a.m. EDT. Investors will closely monitor the timing of the deal.
ServiceNow is set to release its results after the market closes on Wednesday. The company had earlier projected constant-currency subscription revenue growth between 21% and 21.5%. It had also anticipated constant-currency cRPO growth of 19.5%.
Shares of ServiceNow dropped 2.5% on Tuesday. UiPath does not have any investor events currently planned. Upcoming peer reports are set to offer the next read on demand this week.
Risks: The $30.5 million sum is based on rounded guidance figures. It does not represent net-new ARR as reported. UiPath notes that ARR should not be interpreted as a revenue projection. Fluctuations in currency, contract renewals, and timing may impact outcomes.
For investors, the meaningful benchmark stands at approximately $31 million. Strong outperformance would indicate agentic products are driving ARR growth. A result in line with expectations would largely mirror last year’s weaker quarter.
