NEW YORK, August 6, 2026, 05:04 EDT
- UiPath finished at $13.82, rising 9.8% across five sessions.
- The stock is currently in line with analysts’ consensus price target of $13.80.
- Second quarter outlook suggests net new ARR of approximately $30.5 million, nearly unchanged from a year earlier.
UiPath stock has matched the average Wall Street price target following a rebound across the sector. Shares ended Wednesday at $13.82 and pointed to $13.70 ahead of U.S. market open. U.S. regular trading was yet to begin.
Timing is key. Investors have already priced in the expected gains ahead of UiPath releasing its second-quarter results.
The company’s Q2 ARR midpoint is $1.9315 billion, indicating approximately $30.5 million in net new ARR, according to an initial estimate. UiPath recorded a $31 million net new ARR in the corresponding quarter a year ago.
The recent increase was largely not due to company-specific developments. UiPath saw its largest jump on Tuesday, coinciding with a rally in Palantir Technologies Inc. NASDAQ:PLTR, which surged after reporting a near twofold rise in quarterly revenue and lifting its forecast.
| Session | UiPath closing price | Change for the day | Shares traded |
|---|---|---|---|
| July 29 | $12.59 | +3.28% | 62.57 million |
| August 4 | $14.10 | +8.05% | 61.99 million |
| August 5 | $13.82 | -1.99% | 91.84 million |
Trading volume on Wednesday was 1.55 times greater than the 65-day average, indicating possible profit-taking following Tuesday’s sympathy move. The data does not confirm an end to the rally.
UiPath’s August 5 product update broadened complimentary Community access as part of Unified Pricing. The update introduced credits and licenses for agents, orchestration, and robotic automation. No financial information was included in the release.
| Metric | Q1 FY2027 actual | Q2 FY2027 midpoint | Q2 FY2026 actual |
|---|---|---|---|
| Revenue | $418 million | $397.5 million | $362 million |
| Revenue growth | 17% | 9.8% | 14% |
| ARR | $1.901 billion | $1.932 billion | $1.723 billion |
| Net new ARR | $49 million | $30.5 million | $31 million |
| Non-GAAP operating income | $92 million | $75 million | $62 million |
| Non-GAAP operating margin | 22.0% | 18.9% | 17.1% |
Q2 midpoint growth, net new ARR, and margin figures are initial estimates based on the company’s outlook.
Management gained trust in the first quarter as revenue climbed 17%, with GAAP operating income at $28 million. Chief Executive Daniel Dines stated that agentic products were “moving from pilot to production.” UiPath, Inc.
Even so, the Q2 outlook points to reduced revenue growth, with the midpoint indicating around 9.8%, compared to 17% in the previous quarter. Preliminary estimates suggest the non-GAAP margin will also decline sequentially.
Valuation provides a cushion, though it is not an unlimited one. As of April 30, UiPath had $1.42 billion in cash and securities, representing about 19% of its present market capitalisation.
Basic market-cap ratios are about 3.8 times ARR and 4.1 times projected yearly revenue. These figures are considered low for the software sector. However, the average analyst price target suggests no short-term gain.
| Company | Latest company growth signal | Market value | Near-term read-through |
|---|---|---|---|
| UiPath | Q1 revenue up 17% | $7.29 billion | Q2 midpoint points to roughly 9.8% |
| Palantir Technologies NASDAQ:PLTR | Q2 revenue climbed 93% | $406.96 billion | Annual forecast increased |
| ServiceNow Inc. NYSE:NOW | Q2 revenue rose 24% | $121.25 billion | AI annual contract value topped $1 billion |
| Appian Corp. NASDAQ:APPN | Q2 revenue projected to rise 12%-14% | $2.21 billion | Results expected before Thursday opening |
The analysis is based on current market capitalisations and the most recent available growth indicators for each firm. Appian’s statistic reflects its guidance issued ahead of earnings.
UiPath continues to be much smaller than the top AI software leaders. Its growth rate also lags behind these firms. This difference accounts for its cheaper valuation and conservative analyst forecasts.
| Analyst measure | Current reading | Versus $13.82 close |
|---|---|---|
| Buy recommendations | 2 of 17 | 11.8% |
| Hold recommendations | 14 of 17 | 82.4% |
| Sell recommendations | 1 of 17 | 5.9% |
| Average target | $13.80 | -0.1% |
| Target range | $12 to $18 | -13.2% to +30.2% |
The consensus on recommendations stays solidly neutral.
Needham’s Scott Berg has set a price target of $15, suggesting an approximate 8.5% potential gain. A quarter in line with guidance could offer limited justification for raising targets more broadly.
Appian will announce results ahead of Thursday’s session, providing further insight into workflow demand. On Friday, the U.S. employment report will serve as a broader valuation gauge for software stocks.
Risks: UiPath’s outlook might be cautious, and accelerated pilot conversions have potential to boost ARR. However, a downturn in renewals, pricing challenges, or a broader software market decline could overturn the recovery.
UiPath requires more than consistent performance. An ARR outcome close to $1.932 billion would indicate steadiness. A convincing beat is necessary to support the recent rerating.
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