NEW YORK, May 29, 2026, 07:04 (EDT)
UiPath shares dropped in premarket trading Friday, pulling back from Thursday’s gains. The automation software firm posted higher revenue and raised guidance, but investors are still weighing how much AI will translate into lasting growth in sales.
PATH finished Thursday at $11.58, gaining 3.76%. The shares traded lower before the bell, down 2.85% at $11.25 as of 6:53 a.m. EDT. The price is still far from PATH’s 52-week high at $19.84.
Software stocks are moving. UiPath is moving away from its roots in robotic process automation — using bots for repetitive office jobs — and pushing toward an agentic automation platform. Investors looking for software that gains from AI, instead of losing out to it, are watching those moves.
U.S. markets reopen for regular trading on Friday, following Monday’s Memorial Day holiday. The New York Stock Exchange opens at 9:30 a.m. and closes at 4:00 p.m. ET.
UiPath posted fiscal Q1 revenue of $418 million for the quarter ended April 30, a 17% gain from last year. ARR, meaning the annualized renewal run-rate, which looks at subscription and maintenance invoice value and isn’t the same as revenue, climbed 12% to $1.901 billion.
UiPath, Inc. reported $28 million in operating income on a U.S. GAAP basis. Non-GAAP operating income landed at $92 million, with that figure excluding stock compensation and acquisition-related amortization. Dollar-based net retention came in at 109%, showing customer expansion after churn.
UiPath CEO Daniel Dines said the quarter was a “strong start to the fiscal year” as he noted the company’s agentic products are going “from pilot to production.” CFO Ashim Gupta mentioned “operational discipline” following what UiPath reported as its first GAAP-profitable first quarter. UiPath, Inc.
UiPath, Inc. expects fiscal 2027 revenue between $1.776 billion and $1.781 billion, and sees ARR landing at $2.058 billion to $2.063 billion by Jan. 31, 2027. The company is aiming for full-year non-GAAP operating income of about $430 million.
Management told the earnings call that 16 of UiPath’s biggest 20 deals this quarter had AI products in them. Expansion deals linked to AI came in around six times the size of those without AI, Dines said. Coding agents are supposed to slash the months-long automation deployment process.
UiPath isn’t alone in this market. Microsoft Power Automate, Automation Anywhere’s Agentic Process Automation System, and ServiceNow’s AI Platform are all named by Gartner Peer Insights in the same business orchestration and automation category. UiPath needs to prove its orchestration push can hold up against bigger stacks.
Futures held gains early Friday after the S&P 500 and Nasdaq closed at records Thursday. S&P 500 futures edged up 0.08% and Nasdaq futures added 0.05%. Daniela Hathorn, senior market analyst at Capital.com, said “risk appetite has improved” with less focus on geopolitics, but said markets are still watching inflation and headlines. Reuters
BofA Securities stuck with its Underperform on UiPath, bumping its price target up to $13 from $12 on what it said was better execution from the company. But the bank is still raising flags about how long UiPath’s value pitch can last as AI keeps changing the software space. BofA also noted it expects UiPath’s 2027 calendar growth to lag other infrastructure-software names.
That’s the call before the bell. UiPath is putting up revenue growth, producing cash and its AI story is stronger than last year. The hitch is agentic automation still looks more like a feature buyers try out, not a must-have that boosts budgets or moves the stock’s multiple in a hurry.
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