NEW YORK, July 23, 2026, 05:10 EDT
- UiPath ended regular trading at $10.70, a drop of 11.1%. U.S. markets stayed shut, while shares edged up 0.2% in premarket trade.
- The company’s outlook suggests ARR will rise by $30.5 million this quarter, which is roughly 38% lower than net new ARR in the first quarter.
- Pegasystems Inc. NASDAQ:PEGA flagged postponed purchasing activity. ServiceNow Inc. NYSE:NOW subsequently stated that its sales cycles remained stable.
UiPath Inc. dropped 11.1% on Wednesday after an automation sector peer flagged AI-related purchasing delays. The decline drew attention to a less discussed concern: UiPath’s outlook suggests softer sequential growth in annual recurring revenue.
A guidance outlook indicates second-quarter ARR growth is around $30.5 million, roughly 38% lower than the previous quarter’s $49 million. This figure represents a forecast and not an actual result.
UiPath did not issue any company statements during Wednesday’s market decline. The most recent post in its newsroom is dated July 14. The S&P 500 fell by just 0.14%.
PATH finished the session at $10.70, with 106.2 million shares changing hands. Trading volume was close to double its 65-day average. Shares were indicated up 0.2% ahead of Thursday’s standard trading session.
Pegasystems reported that sudden shifts in the AI market led customers to postpone buying decisions. The company’s total annual contract value climbed 7%, and cloud ACV was up 22%. Still, Pegasystems stock dropped 16% in Wednesday’s trading.
Chief Executive Alan Trefler cited concerns about unpredictable expenses. “Letting language models do everything is risky and expensive,” he said. Pega
ServiceNow offered a contrasting update after Wednesday’s market close, with its stock climbing almost 4% following an increase to its annual subscription-revenue outlook. Current remaining performance obligations rose 21% compared to the same period last year.
Chief Executive Bill McDermott stated that there was no change in sales cycles. Annual contract value for ServiceNow’s AI products surpassed $1 billion.
| Company | Latest demand measure | July 22 market signal |
|---|---|---|
| UiPath | Q1 ARR increased by 12%; Q2 ARR outlook indicates a $30.5 million quarter-on-quarter rise | Shares dropped 11.1% |
| Pegasystems | Total ACV grew 7%; cloud ACV up 22% | Shares slid 16% amid clients postponing decisions |
| ServiceNow | Current obligations advanced 21%; AI ACV surpassed $1 billion | Shares rose nearly 4% in late trading |
The metrics are distinct and should not be seen as the same indicators of growth. Nevertheless, ServiceNow reported higher contract activity, whereas Pega pointed to postponed decisions.
UiPath began the quarter showing positive operating income and cash flow. Revenue for the first quarter climbed 17% to $418 million, with ARR up 12%. Adjusted free cash flow stood at $130 million, while liquidity amounted to $1.42 billion.
Chief Executive Daniel Dines stated that agentic products are “moving from pilot to production.” UiPath forecasted second-quarter revenue in the range of $395 million to $400 million. The midpoint is roughly 5% lower than first-quarter revenue. UiPath, Inc.
Early estimates of market capitalization indicate a loss of about $707 million on Wednesday. This figure is roughly 1.8 times the midpoint of the forecasted second-quarter revenue.
UiPath dropped from $12.03 to $10.70 over five sessions, marking a fall of 11.1%. Until Wednesday, closing prices had ranged from $12.03 to $12.16.
The consensus from analysts continues to be Hold, with 17 out of 22 ratings classified as such. The median price target is $13.
U.S. regular market trading had ended at the dateline while premarket activity was ongoing. UiPath does not currently show any scheduled investor events on its calendar. The company’s fiscal second quarter wraps up July 31, placing continued focus on ARR delivery next week.
Risks: UiPath may surpass its projected ARR, countering the indicated deceleration. Any additional purchase deferrals similar to Pega could negatively impact both growth and valuation.
