NEW YORK, March 13, 2026, 09:09 EDT
UiPath got hammered on Thursday, sliding 8.2% to finish at $11.37. The automation software company outperformed in the fourth quarter, but investors zeroed in on its fiscal 2027 forecast, which didn’t live up to the momentum. The numbers landed after the bell Wednesday.
Why does this matter? UiPath has spent months pitching the idea that artificial intelligence should expand its addressable market, not compress it. Yet with the fresh outlook, the company now expects revenue to climb only about 9% this year—down from a 13% gain in fiscal 2026. That’s a deceleration that may sting, especially as the software crowd keeps insisting on tangible AI returns.
UiPath posted a 14% bump in fourth-quarter revenue, reaching $481 million. Annual recurring revenue, its key subscription metric, logged an 11% increase to $1.853 billion. Still, the market zeroed in on the big question: can that recurring revenue pace pick up again from this level?
Daniel Dines, founder and CEO, told investors customers “need a platform that can execute complex processes with reliability, governance, and scale.” On the numbers, Chief Operating and Financial Officer Ashim Gupta pointed out the company posted its first-ever full-year GAAP profit. UiPath, Inc.
On the earnings call, management leaned in on specifics for its AI pitch. UiPath reported that cloud ARR climbed past $1.2 billion—a jump of over 20% versus last year. The company added that 90% of customers pulling in more than $1 million in ARR are already using its AI products. Dines pointed to fresh demand for core automation tools, driven by new AI projects.
The company kept its outlook conservative. UiPath is projecting first-quarter revenue between $395 million and $400 million, and sees full-year revenue landing in the $1.754 billion to $1.759 billion range. “The federal and macroeconomic environment remains variable,” CFO Ashim Gupta told analysts. He added that moving to a software-as-a-service model will trim roughly one percentage point off growth for the year. UiPath, Inc.
The board is banking on capital returns to help calm nerves. UiPath wrapped up its $1 billion buyback, snapped up 14 million more shares at an average price of $12.11 by March 10, and signed off on a new $500 million repurchase plan.
Initial reactions on Wall Street were a mixed bag. UBS’s Radi Sultan trimmed his price target down to $13, sticking with a Neutral call and voicing doubts that AI momentum alone could drive a real turnaround. Oppenheimer’s Brian Schwartz didn’t budge from Perform, pointing to rising competition out of Microsoft and ServiceNow. On the other hand, Needham’s Scott Berg saw an opportunity, lifting his rating to Buy with a $15 target, calling the “current valuation looks compelling.” Barron’s
The next thing to watch: does AI-fueled upselling actually translate into stronger core automation sales? If that shift happens, Thursday’s selloff might seem overdone. But if federal budgets, choppy macro conditions, or heavyweight competitors limit a growth rebound, UiPath could be looking at another stretch of single-digit growth.
UiPath wrapped up January holding $1.69 billion in cash, cash equivalents and marketable securities, carrying zero debt. That financial cushion lets management continue repurchasing shares as they work to show that AI is fueling growth—not undermining what they’ve built.
