TLDR
- UiPath beat Q4 estimates with EPS of $0.30 vs $0.26 expected, and revenue of $481M vs $465M expected
- The stock fell more than 5% in premarket trading despite the beat
- ARR hit $1.853B at end of January 2026, up 11% year-over-year
- Management disclosed $200M in ARR from AI-related products for the first time
- FY27 revenue guidance of $1.754B–$1.759B came in above the $1.74B consensus
UiPath posted a strong fourth quarter but the market wasn’t impressed. The stock dropped more than 5% in premarket trading Thursday even after the company beat on both revenue and earnings.
For Q4 fiscal 2026, UiPath earned $0.30 per share on an adjusted basis. Revenue came in at $481.11 million. Wall Street had expected $0.26 per share and $464.88 million in revenue.
$PATH (UiPath) #earnings are out: pic.twitter.com/8wXOv2oclp
— The Earnings Correspondent (@earnings_guy) March 11, 2026
Full-year revenue for fiscal 2026 came in at $1.611 billion, up 13% year-over-year.
ARR reached $1.853 billion as of January 31, 2026 — an 11% increase from a year ago. Net-new ARR grew 20% on a reported basis but dropped 5% on a constant currency basis.
For the first time, UiPath broke out $200 million in ARR tied specifically to its AI products. That includes its agents, Maestro orchestration platform, and Intelligent Document Processing tools.
CEO Daniel Dines pointed to a semiconductor client that deployed agentic workflows in under two weeks. He also cited One New Zealand, which cut a four-to-five day order-to-cash process down to 10 minutes — and expects $20 million in savings this year.
“We are at an inflection point in how software is built,” Dines said.
Guidance Above Consensus, but ARR Growth Concerns Linger
For Q1 fiscal 2027, UiPath guided revenue of $395 million to $400 million. Full-year FY27 revenue guidance came in at $1.754 billion to $1.759 billion, above the $1.74 billion consensus estimate.
The company sees FY27 ARR between $2.051 billion and $2.056 billion — roughly 11% growth at the midpoint, and about 1.6% above consensus.
Morgan Stanley analyst Sanjit Singh noted the guidance includes a contribution from the WorkFusion acquisition, which closed in Q1 FY27. He said on an organic basis, the ARR guide implies “relatively flat net-new ARR growth for the year.”
Truist Securities analyst Terry Tillman called it a “solid quarter highlighted by continued sales execution and traction in AI-driven automation.”
Profitability Milestone and Buyback
UiPath posted GAAP net income of $282 million for the full fiscal year — the first time in company history it has achieved full-year GAAP profitability.
CFO Ashim Gupta updated the company’s long-term non-GAAP operating margin target to 30%, up from prior guidance. Non-GAAP operating income for FY26 came in at $370 million, a 23% margin.
The company ended Q4 with $1.7 billion in cash and no debt. It completed its $1 billion stock repurchase program during the quarter and authorized a fresh $500 million buyback.
Q4 adjusted free cash flow was $182 million. Full-year free cash flow reached $372 million.
UiPath guided non-GAAP operating income of approximately $415 million for FY27, with non-GAAP gross margin expected at around 84%.
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