TD Cowen has revised its price target for UiPath (PATH, Financial) from $12 to $15, maintaining a Hold rating on the stock. This adjustment comes after the company's first-quarter results surpassed expectations. Looking ahead, UiPath's projections for the second quarter and the revised forecasts for the fiscal year 2026 are also more optimistic than previously anticipated. The updated outlook reveals strong revenue and EBIT growth, with the annual recurring revenue (ARR) slightly exceeding prior estimates. Additionally, the company's adjusted free cash flow has been reaffirmed, indicating a solid financial position.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for UiPath Inc (PATH, Financial) is $13.37 with a high estimate of $16.12 and a low estimate of $10.00. The average target implies an upside of 3.34% from the current price of $12.94. More detailed estimate data can be found on the UiPath Inc (PATH) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, UiPath Inc's (PATH, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UiPath Inc (PATH, Financial) in one year is $22.69, suggesting a upside of 75.35% from the current price of $12.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UiPath Inc (PATH) Summary page.
PATH Key Business Developments
Release Date: May 29, 2025
- Revenue: $357 million for the first quarter, an increase of 6% year over year.
- Annual Recurring Revenue (ARR): $1.693 billion, up 12% year over year.
- GAAP Operating Loss: Improved to $16 million from a loss of $49 million in the prior year.
- Non-GAAP Operating Income: $70 million, representing a 20% margin, an improvement of 450 basis points year over year.
- Gross Margin: Overall gross margin at 84%, with software gross margin at 90%.
- Non-GAAP Adjusted Free Cash Flow: $117 million, representing a 33% margin, up over 250 basis points year over year.
- Cash and Marketable Securities: $1.6 billion, with no debt.
- Share Repurchase: 21.9 million shares of Class A common stock repurchased at an average price of $10.40.
- Customer Count: Approximately 10,750 customers, with 2,365 customers having $100,000 or more in ARR, and 316 customers with $1 million or more in ARR.
- Dollar-Based Gross Retention Rate: 97%.
- Dollar-Based Net Retention Rate: 108%.
- Remaining Performance Obligations (RPO): $1.231 billion, up 12%.
- Guidance for Q2 2026: Revenue expected between $345 million to $350 million, ARR between $1.715 billion to $1.720 billion, and non-GAAP operating income of approximately $40 million.
- Guidance for Fiscal Year 2026: Revenue expected between $1.549 billion to $1.554 billion, ARR between $1.820 billion to $1.825 billion, non-GAAP operating income of approximately $305 million, and non-GAAP adjusted free cash flow of approximately $370 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UiPath Inc (PATH, Financial) reported strong first-quarter financial performance, with revenue of $357 million and an ARR of $1.693 billion, marking a 12% year-over-year increase.
- The company achieved a significant improvement in GAAP operating loss, reducing it to $16 million from $49 million in the prior year, and reported a non-GAAP operating income of $70 million, representing a 20% margin.
- UiPath Inc (PATH) launched its agentic automation platform, which has been well-received, with customers creating thousands of autonomous agents and generating over 250,000 agent runs.
- The company has a strong partner ecosystem, with over 40 partners completing the agentic fast-track program, enhancing customer engagement and adoption.
- UiPath Inc (PATH) maintains a healthy balance sheet with $1.6 billion in cash, cash equivalents, and marketable securities, and no debt, allowing for strategic investments and share repurchases.
Negative Points
- Despite the positive financial performance, the macroeconomic environment remains variable, leading to cautious guidance for the remainder of the fiscal year.
- The adoption of the newly launched agentic solutions is still in its early phases, and no material revenue contribution is expected in fiscal 2026.
- UiPath Inc (PATH) experienced a slight decline in its dollar-based net retention rate to 108%, indicating some pressure on customer retention.
- The US federal business is still in transition, with continued pressure on new budgets being finalized, affecting growth in this segment.
- The company faces competition in the agentic orchestration market, requiring differentiation through unique offerings like Maestro, which integrates agents, robots, and people.
