NEW YORK, September 3, 2026, 13:18 (EDT)
- Shares of UiPath increased by 3.0% to $18.53 as of 13:15:24 EDT.
- The guidance for annual recurring revenue in the second quarter suggests net additions in the range of $28 million to $33 million.
- The guide’s midpoint is 38% lower than the net new ARR reported in the first quarter.
UiPath Inc. NYSE:PATH stock gained 3.0% to $18.53 on Thursday, trading higher before its fiscal second-quarter earnings release. The company is scheduled to announce results after the market closes. Its conference call is set for 17:00 EDT UiPath earnings notice.
The key issue now is not just headline growth. UiPath’s forecast suggests net new annualized renewal run-rate between $28 million and $33 million, with the midpoint at $30.5 million. That figure is 38% lower than the previous quarter.
Trading was subdued, with roughly 25.6 million shares traded as of 13:15 EDT. This represented 38% of the stock’s three-month average daily volume, even though 58% of the session was over Yahoo Finance.
UiPath held most of its opening gain
Intraday change from Wednesday’s $17.99 close
As of . Source: Yahoo Finance; values rounded.
UiPath expects revenue in the second quarter to range between $395 million and $400 million. The company sees annualized recurring revenue (ARR) at $1.929 billion to $1.934 billion, and anticipates reporting roughly $75 million in non-GAAP operating income first-quarter release and outlook.
Those ranges establish a reduced sequential growth threshold. At the midpoint, revenue would drop 5.0% compared to the first quarter. Net new ARR would decrease from $49 million to $30.5 million.
In May, Chief Executive Daniel Dines stated that agentic products were “moving from pilot to production.” Thursday’s release will indicate if this transition is resulting in greater renewals and additional contracts.
The ARR hurdle is lower
Q2 guide midpoint implies 38% less net new ARR
ARR at April 30 was $1.901 billion. Q2 guidance was $1.929 billion–$1.934 billion. Source: UiPath; TS2 calculations.
The second measure is profitability. Non-GAAP operating margin reached 22.1% in the first quarter. The outlook for second-quarter income suggests approximately 18.9% at the midpoint of revenue guidance.
Cash flow outpaced reported profit, with operating cash flow at $132 million and adjusted free cash flow totaling $130 million. Stock-based compensation amounted to $53 million, nearly double the GAAP operating income.
UiPath allocated $244 million to share buybacks in the quarter. The company reported $1.42 billion in cash and marketable securities at the end of April, providing resources for repurchases, acquisitions, and product development.
First-quarter operating pulse
Quarter ended April 30, 2026. Q2 margin uses the midpoint of revenue guidance. Source: UiPath; TS2 calculations.
UiPath’s market value stood at approximately $9.6 billion at $18.53 per share. This figure is about 5.0 times its first-quarter ARR, reflecting a comparison based on equity value rather than enterprise value.
The stock was trading 6.6% under its 52-week peak, after more than doubling from its low point in the same period. This situation sets a higher standard for a positive forecast.
Last quarter, dollar-based net retention stood at 109%. This means current customers increased their spending by 9% when taking churn and contractions into account. With a slowdown in net additions, growth will rely more heavily on acquiring new customers.
Two updates for investors are scheduled. Chief Financial Officer Ashim Gupta will present at Citi’s technology conference on September 8 UiPath notice. An investor day is set for September 22 event announcement.
Risks: Missing revenue or ARR might put pressure on the stock’s recent rebound. Lower margins could highlight the significance of cash conversion. However, quicker adoption of agentic products may boost renewal growth and outlook.
The after-hours response could depend on a single metric. Investors are seeking proof that agentic demand is able to surpass the intentionally reduced ARR-addition threshold.
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