NEW YORK, June 1, 2026, 12:03 (EDT)
UiPath shares shot up almost 10% in late-morning trading in New York on Monday, with the stock building on gains since earnings. Revenue came in ahead and guidance moved up, while investors also pointed to AI tools showing up in bigger customer contracts. PATH was last seen at $12.88, up $1.16. Shares opened at $12.31 and hit an intraday high of $12.95.
UiPath is in a tough spot in software. Automation names are working to convince investors that new AI agents can boost their market instead of sidelining existing tools. Shares in the wider software group bounced too. The iShares Expanded Tech-Software Sector ETF added roughly 5.3%, QQQ climbed 0.4%, and SPY was flat.
UiPath posted fiscal Q1 revenue of $418 million, a 17% gain, and said annualized renewal run-rate hit $1.901 billion, up 12%. ARR is the yearly value of subscriptions and maintenance based on current contracts. UiPath is now looking for fiscal 2027 revenue between $1.776 billion and $1.781 billion, raising its previous forecast.
UiPath CEO Daniel Dines said the company’s agentic products are “moving from pilot to production,” words that play into Monday’s bid and set up a clear checkpoint for the coming quarters. Chief Operating and Financial Officer Ashim Gupta noted UiPath posted its first GAAP profit in the first quarter, under U.S. accounting standards, citing “operational discipline.” UiPath, Inc.
Wall Street didn’t move all in one direction. Needham’s Scott Berg stuck with his Buy call and $15 target. “Improving demand and execution,” he wrote. Berg said 16 of UiPath’s top 20 deals last quarter included agentic modules, pointing to AI getting pulled into bigger upsell deals. Benzinga
Morgan Stanley analyst Sanjit Singh took a cautious stance, lowering his price target to $15 from $17 and sticking with an Equal Weight rating. Singh called the quarter “solid,” but pointed to modest ARR flow-through, saying the outlook remains in “show-me” territory. TipRanks
BofA Securities bumped its target up to $13 from $12 on UiPath but stuck with an Underperform rating. The firm said a discount to other infrastructure software peers is still justified, citing ongoing doubts over how long UiPath’s value proposition can last in a changing AI space.
Analyst calls on PATH haven’t shifted much, according to Benzinga. The consensus rating is Neutral with an average price target at $14.48. The last three broker notes—BMO Capital, DA Davidson, and BofA Securities—landed between May 29 and June 1.
Competition is heating up. Microsoft and ServiceNow are moving further into AI-agent governance and enterprise workflow tools. In May, ServiceNow said it would expand its integration with Microsoft Agent 365, aiming to help companies manage AI agents across platforms. That puts them up against UiPath in the same enterprise budget talks.
Monday’s rally could be getting ahead of itself. UiPath notes that ARR isn’t a prediction for future revenue in its filings and points to risks like customer retention, AI adoption, growing competition, and reliance on large language models from others. If net new ARR dips again or AI features stay in pilot mode without driving real spending, some of the stock’s post-earnings gains might slip.
For now, traders are spending on better execution and a stronger software tape. The question is if UiPath can use AI interest to drive steady renewal growth, instead of just putting up a stronger showing on earnings day.
