UiPath dips despite revenue beat, as guidance fails to excite analysts about longer-term growth
UiPath is down 5% in premarket trading on Thursday after the software and agentic automation company’s guidance failed to fully address investors’ growth concerns, despite posting upbeat results for the quarter and full year ended January 31, 2026.
For the final quarter of FY2026, UiPath posted revenue of $481 million, just above analysts’ consensus estimate of $465 million (compiled by Bloomberg), and adjusted earnings per share of $0.30, topping Wall Street estimates by 18%. The company’s annualized recurring revenue grew 11% year over year to $1.853 billion, and the quarter also rounded out the company’s first profitable full year, with a GAAP operating income of $57 million for fiscal 2026.
Despite the better-than-expected results, shares slumped seemingly on the company’s conservative growth guidance. UiPath expects the following for the full year ending January 31, 2027:
Revenue between $1.754 billion and $1.759 billion, which would signal a slowdown in year-over-year growth to at least 9%, compared with 13% in the latest full-year results.
ARR in the range of $2.051 billion to $2.056 billion as of January 31, 2027.
Non-GAAP operating income of approximately $415 million.
In the wake of the results, a number of analysts have cut their price targets, suggesting that Wall Street was implicitly hoping for more exciting guidance. Morgan Stanley’s analyst cut their price target to $17 (from $19), Canaccord dropped its target to $15 (from $19), and UBS lowered it to $13 (from $17).
