NEW YORK, July 10, 2026, 13:07 (EDT)
UiPath Inc. NYSE:PATH gave up a morning gain of 3.5% on Friday, with shares changing hands around $11.81 by 1 p.m. EDT after earlier hitting $12.21. The stock was little changed. The iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) dropped 1.4%.
| Security | Price | Friday move | Below intraday high |
|---|---|---|---|
| UiPath Inc. NYSE:PATH | $11.81 | flat | down 3.3% |
| ServiceNow Inc. NYSE:NOW | $107.07 | dropped 1.6% | off 4.1% |
| Pegasystems Inc. NASDAQ:PEGA | $31.37 | fell 2.2% | off 4.9% from high |
| iShares software ETF (NYSEARCA:IGV) | $92.61 | slipped 1.4% | ended 2.6% below top |
The reversal points to another factor helping the stock: buybacks big enough to matter for earnings per share. UiPath’s filings show it had about $413.8 million left in its current buyback authorization after purchases through May 15. That amount is 6.6% of the company’s $6.23 billion market cap as of Friday, enough for around 35 million shares at $11.81 each, not counting later trades, fees or new stock sold.
Shares outstanding are down. Total Class A and Class B shares dropped to 518.1 million as of May 29 from 537.0 million at Jan. 31, cutting the count by 18.9 million, or 3.5%. UiPath said it bought 20.4 million Class A shares in the first quarter and picked up another 2.4 million through May 15.
| Buyback and share-count measure | Filed or derived figure |
|---|---|
| Shares out as of Jan. 31 | 537.0 million |
| Shares out as of May 29 | 518.1 million |
| Net drop | 18.9 million, or 3.5% |
| Buyback room at April 30 | $436.9 million |
| Estimated spend May 1-15 | $23.1 million |
| Buyback left after May 15 | $413.8 million |
| Shares that could be bought at $11.81 | 35.0 million |
| Possible share-count cut | 6.8% |
The implied balance comes from average purchase prices the company disclosed, not from a company-reported figure after May 15.
ServiceNow and Pegasystems aren’t perfect comps, but both target enterprise automation with AI-first workflow platforms. That puts both up against UiPath as companies look to automate more business processes with the same tech spend. UiPath fared better in Friday’s trading, but its market cap, around $5.61 billion, sits near Pega’s and is just a fraction of ServiceNow’s $111.33 billion.
Valuation is the other side here. After taking out UiPath’s $1.42 billion in cash and securities from its market cap, that leaves a cash-adjusted equity value near $4.81 billion, before counting other balance sheet items. That’s about 2.5x first-quarter ARR — annual recurring revenue — and 2.7x the midpoint of the company’s full-year revenue outlook. Revenue for the first quarter climbed 17% to $418 million, while ARR gained 12% to $1.901 billion. For the second quarter, the midpoint of ARR guidance points to a sequential increase of $30.5 million, which is less than the $49 million in net new ARR seen in the first quarter.
CEO Daniel Dines said “16 of the top 20 deals included AI.” He said expansion deals with AI were six times bigger than those without. CFO Ashim Gupta said the firm is running with an “invest-first mindset and a waste-nothing mindset.” The Motley Fool
The buyback story could go two ways. UiPath’s program is discretionary, and the $413.8 million is an estimate, not what the company has on its books right now. The company’s cash and securities dropped to $1.42 billion from $1.69 billion in Q1 after it spent $243.8 million on buybacks and paid $149.4 million net for WorkFusion. That came even as it brought in $131.9 million from operations. If subscription growth slows, UiPath could see less operating flow to cover these spending moves.
So just two numbers to look for in the next results: total shares outstanding and net new ARR. If they cut the share count again and keep subscription growth stable, that means the plan is increasing each investor’s piece of the company without hiding softer demand. But if the share count holds steady or net new ARR slows again, Friday’s reversal is tough to brush off.
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