UiPath Inc. (NYSE:PATH) stock traded sharply lower Friday after the company reported second-quarter results and raised its fiscal 2027 revenue outlook.
UiPath reported quarterly earnings of 15 cents per share, matching the consensus estimate, according to Benzinga Pro. Revenue rose to $410.26 million, beating the Street estimate of $397.95 million.
The company raised its fiscal 2027 revenue outlook to $1.789 billion to $1.794 billion, up from $1.776 billion to $1.781 billion. The new range also topped the $1.778 billion consensus estimate.
Several analysts revised their price forecasts following the report.
- Canaccord Genuity analyst Kingsley Crane downgraded UiPath from Buy to Hold but raised his price forecast to $17 from $15.
- DA Davidson analyst Lucky Schreiner maintained a Neutral rating and raised his price forecast to $16 from $12.
- RBC Capital Markets analyst Matthew Hedberg maintained a Sector Perform rating and raised his price forecast to $17 from $15.
- TD Cowen analyst Bryan C. Bergin maintained a Hold rating and raised his price forecast to $16 from $13.
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RBC said AI-driven deal momentum, new product adoption and improving customer retention were encouraging. The firm continues to look for signs that UiPath’s growth can accelerate.
Hedberg said management raised its fiscal 2027 outlook on positive underlying business trends, a healthy pipeline and strong customer momentum despite a variable macroeconomic environment.
TD Cowen said second-quarter results benefited from healthy annual recurring revenue growth, stable net revenue retention and rising AI adoption.
Bergin said execution and the relevance of UiPath’s platform appear to be improving. However, the stock’s sharp rally over the past three months, fueled by a reversal in the AI trade and a broader software recovery, has come before a clear improvement in growth.
He said UiPath’s upcoming investor day could provide more evidence of a path toward faster growth and AI monetization.
DA Davidson also pointed to stable growth and said the upcoming investor day could offer more details on the company’s path toward acceleration.
Schreiner remains encouraged by stable ARR growth. However, with adoption of UiPath’s newer AI products still in its early stages, he said the current valuation largely reflects expected growth.
Canaccord took a more cautious stance after the stock’s recent rally and amid an increasingly fluid competitive environment. Crane raised his price forecast but downgraded the shares to Hold.
The analyst plans to reassess his view after speaking with customers at the company’s conference in about three weeks.
PATH Price Action: UiPath shares were down 17.07% at $15.11 at the time of publication on Friday, according to Benzinga Pro data.
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