NEW YORK, March 12, 2026, 09:14 EDT
Shares of UiPath dropped over 5% before the bell Thursday. The automation software company posted a fourth-quarter beat and announced a fresh $500 million buyback, but its outlook for fiscal 2027 revenue growth disappointed. The stock finished Wednesday’s session at $12.38, with results hitting after markets closed.
UiPath has been under pressure to prove its AI automation bet can drive both top-line gains and profit. The company notched its first-ever full-year profit on a GAAP basis, but its outlook points to roughly 9% revenue growth in fiscal 2027—slipping from the 13% pace expected for fiscal 2026.
UiPath, known for software that handles repetitive tasks in the workplace, is leaning into what it calls “agentic” automation — AI that handles more complex, multi-step work with fewer nudges from people. Chief Executive Daniel Dines said companies are shifting from trying out AI to putting it to work at scale. Reuters
Revenue for the quarter ended Jan. 31 came in at $481 million, up 14%. Annual recurring revenue, or ARR, reached $1.853 billion, an 11% increase. Adjusted diluted earnings per share landed at 30 cents.
UiPath didn’t miss on the top line—its fiscal 2027 revenue forecast came in at $1.754 billion to $1.759 billion, nudging past the $1.74 billion consensus from Investing.com. Still, the market zeroed in on the guidance’s softer growth trajectory.
The company is projecting first-quarter revenue between $395 million and $400 million. Thursday’s initial selloff suggests investors are looking for clearer proof that fresh AI offerings will drive recurring sales growth, rather than just maintain margins.
UiPath wrapped up its previous $1 billion buyback program, and according to a filing, the board cleared another $500 million in repurchases on March 5. There’s no expiration attached to this new authorization, and the company can halt or drop the purchases whenever it wants.
UiPath wrapped up January sitting on $1.69 billion in cash, cash equivalents and marketable securities. Chief Operating and Financial Officer Ashim Gupta called out “operating discipline” in the quarter, highlighting what he described as “full-year GAAP profitability for the first time.” UiPath, Inc.
Some analysts bucked the cautious trend. Needham’s Scott Berg, for one, upgraded UiPath to Buy on Thursday and put a $15 price target on the stock, Benzinga reported.
Now comes the question: can UiPath actually get annual recurring revenue past $2.05 billion by January 2027 as it’s projecting, without another slowdown in quarterly growth? Judging by the stock’s move, investors seem to be holding out for stronger revenue acceleration, not just tidier margins or more buybacks.
