New York, March 17, 2026, 5:24 PM EDT
UiPath (PATH) clawed back 40.5 cents to $11.98 late Tuesday, paring a bit of last week’s 6.9% slide after earnings. The rebound helped, though it hasn’t erased lingering worries about the automation software firm’s more cautious 2027 forecast.
That’s where things stand. UiPath posted fiscal 2026 revenue of $1.611 billion and now projects just $1.754 billion to $1.759 billion for fiscal 2027—a step down in growth that’s weighed more heavily on investors than the recent quarterly outperformance.
Pressure from analysts isn’t letting up. BMO Capital’s Keith Bachman sliced his price target to $14 from $17, pointing out that investors want “more evidence of sustained AI monetization”—essentially, durable revenue from the latest AI offerings. Over at Morgan Stanley, Sanjit Singh stuck with an Equal Weight rating, noting the outlook suggests “stability in a period of uncertainty.” TipRanks
The numbers came in strong for the quarter: revenue was up 14% to $481 million. ARR hit $1.853 billion, an 11% increase, and operating income, measured by standard accounting, landed at $80 million. UiPath reported a shift to full-year profitability and greenlit a fresh $500 million buyback, following the wrap-up of its earlier $1 billion repurchase plan.
Daniel Dines, the chief executive, described the year as one marked by “disciplined execution.” He pointed to growing demand from customers looking to manage “mission-critical processes” while AI shifts from pilot programs to broader use. On the earnings call, Dines said UiPath had reached an “inflection point” for software development. UiPath, Inc.
Management is pointing to product adoption as its main argument. UiPath told investors that AI-product ARR is now close to $200 million, and noted that 90% of customers spending over $1 million annually are already on board with AI offerings. Still, the company cautioned that moving to cloud subscriptions will shave roughly 1 percentage point from revenue growth for the full year.
Traders found a steadier footing Tuesday. The S&P 500 advanced 0.25%, while the Nasdaq put up a 0.47% gain ahead of the Federal Reserve decision, a move that lent some support to growth stocks. UiPath managed to claw back only part of last week’s slide, despite the broader lift.
UiPath isn’t tucked away in some niche of the software world. Competition is stiff, with private player Automation Anywhere in the mix, plus Microsoft’s AI agents looming large. Some analysts have flagged mounting heat from bigger tech names, raising questions about how fast UiPath can translate its new AI products into real sales expansion.
The coming quarters will be crucial. BofA kept its Underperform on the stock, trimming the target to $12, and flagged the need for convincing evidence of lasting revenue acceleration. BMO echoed the call for proof, despite conceding recent operational improvements. Should that improvement fail to materialize, Tuesday’s bounce could be short-lived.
UiPath closed out January holding $1.69 billion in cash, cash equivalents, and marketable securities—a buffer big enough to support more buybacks and cushion against sluggish growth. Still, last week’s selloff, only partly reversed on Tuesday, shows investors remain focused on revenue momentum, not just improved margins.
