TLDR
- UiPath exceeded Q4 projections with adjusted EPS of $0.30 versus $0.26 consensus, while revenue reached $481M against $465M expected
- Shares declined over 5% in premarket hours despite outperforming expectations
- Annual Recurring Revenue reached $1.853B as of January 2026, reflecting 11% year-over-year growth
- Company revealed $200M in ARR from AI-powered products in first-ever disclosure
- Fiscal 2027 revenue outlook of $1.754B–$1.759B surpassed the $1.74B Street consensus
UiPath delivered impressive fourth-quarter results, yet investors responded with skepticism. Shares tumbled more than 5% during Thursday’s premarket session despite the automation software company exceeding both top and bottom-line expectations.
The company reported adjusted earnings of $0.30 per share for its fourth fiscal quarter of 2026, while revenue totaled $481.11 million. Analysts had forecasted earnings of $0.26 per share on revenue of $464.88 million.
Fiscal 2026 total revenue reached $1.611 billion, marking a 13% increase compared to the prior year.
Annual Recurring Revenue climbed to $1.853 billion by January 31, 2026 — representing an 11% jump year-over-year. Net-new ARR expanded 20% on a reported basis, though it contracted 5% when measured on a constant currency basis.
In a significant disclosure, UiPath revealed for the first time that $200 million of its ARR stems from AI-focused offerings. This category encompasses its autonomous agents, Maestro orchestration technology, and Intelligent Document Processing solutions.
CEO Daniel Dines highlighted customer success stories, including a semiconductor manufacturer that implemented agentic workflows within two weeks. He also mentioned One New Zealand, which compressed a four-to-five day order-to-cash cycle to just 10 minutes — projecting $20 million in annual cost savings.
“We are at an inflection point in how software is built,” Dines stated.
Forward Outlook Beats Estimates as ARR Expansion Questions Persist
For its first quarter of fiscal 2027, UiPath projected revenue between $395 million and $400 million. The full-year FY27 revenue forecast of $1.754 billion to $1.759 billion topped the Street’s $1.74 billion expectation.
The automation platform provider anticipates FY27 ARR ranging from $2.051 billion to $2.056 billion — approximately 11% growth at the midpoint, exceeding consensus by roughly 1.6%.
Morgan Stanley’s Sanjit Singh observed that the guidance incorporates results from the WorkFusion transaction, which finalized during Q1 FY27. He indicated that on an organic basis, the ARR forecast suggests “relatively flat net-new ARR growth for the year.”
Terry Tillman from Truist Securities characterized it as a “solid quarter highlighted by continued sales execution and traction in AI-driven automation.”
Historic Profitability Achievement and Capital Return Program
UiPath recorded GAAP net income of $282 million for the complete fiscal year — marking the first time the company has delivered full-year GAAP profitability since its inception.
CFO Ashim Gupta raised the company’s long-term non-GAAP operating margin objective to 30%, an increase from previous guidance. Non-GAAP operating income for FY26 totaled $370 million, translating to a 23% margin.
The enterprise software firm concluded Q4 with $1.7 billion in cash reserves and zero debt. Management completed its $1 billion share repurchase initiative during the quarter and greenlit an additional $500 million buyback authorization.
Fourth-quarter adjusted free cash flow measured $182 million. Full-year free cash flow amounted to $372 million.
UiPath forecasts non-GAAP operating income of approximately $415 million for FY27, while non-GAAP gross margin is expected to hover around 84%.
