TLDR
- PATH opened at $16.24, down from a prior close of $18.22, and fell further to around $15.66 after earnings
- Q2 revenue came in at $410.3 million, up 13.3% year over year, beating the $397.8 million estimate
- Billings missed slightly at $375.5 million, and growth was seen as too slow compared to AI software peers
- UiPath raised its fiscal 2027 revenue forecast to $1.789-$1.794 billion
- Analyst consensus remains “Hold” with a price target of $15.73; CEO Daniel Dines sold over $22 million in stock last month
UiPath (PATH) dropped over 16% on September 4 after reporting Q2 fiscal 2027 earnings that beat on revenue but failed to impress a market with high expectations for AI-linked companies.
The stock opened at $16.24, down sharply from the prior close of $18.22, and last traded near $15.12. That puts PATH at 21.6% below its 52-week high of $19.29, hit in December 2025.
Revenue for the quarter came in at $410.3 million, up 13.3% year over year and ahead of the Wall Street estimate of $397.8 million. Non-GAAP earnings per share of $0.15 matched expectations.
Billings, however, came in at $375.5 million, a slight miss. Management pointed to longer customer decision-making cycles as enterprises weigh traditional versus AI-driven automation.
CEO Daniel Dines noted that 18 of UiPath’s top 20 deals this quarter included AI, framing the business as a beneficiary of enterprise AI adoption rather than a victim of it. Still, the market wasn’t buying it.
Growth Pace Falls Short of AI-Era Expectations
Annual recurring revenue grew 12% to $1.938 billion, and UiPath posted its fourth straight quarter of GAAP profitability. The company also raised its full-year revenue outlook to $1.789-$1.794 billion and guided for roughly $445 million in non-GAAP operating income.
Q3 guidance of $440 million to $445 million came in slightly above consensus, but investors had priced in something bigger following the stock’s roughly 9% gain just eight days earlier.
The core concern is straightforward: 12-13% growth looks modest next to faster-moving AI software names, and questions remain about whether AI will eventually undercut demand for traditional automation tools.
New CFO Hitesh Ramani acknowledged this, saying UiPath is taking a “prudent approach” to guidance given macroeconomic variability and shifting customer adoption patterns.
Analyst Ratings Hold Steady
Analyst reaction was measured. BMO Capital Markets raised its price target from $13 to $18 but kept a Market Perform rating. Wells Fargo moved its target from $13 to $15 with an Equal Weight rating. Royal Bank of Canada went from $15 to $17 at Sector Perform. DA Davidson raised its target from $12 to $16 at Neutral, and TD Cowen moved from $13 to $16 at Hold.
Of 19 analysts covering the stock, 16 rate it Hold, two rate it Buy, and one rates it Sell. The consensus price target sits at $15.73.
Adding to the cautious tone, CEO Daniel Dines sold 1.4 million shares on August 19 at an average of $16.07, a transaction worth over $22.5 million. He still holds over 26 million shares.
Institutional holders including State Street, Morgan Stanley, and AQR Capital have all increased their positions in recent quarters. Institutional investors now own 62.5% of the stock.
PATH is down 4.8% year to date, and investors who bought $1,000 worth of the stock five years ago would have roughly $242 today.
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