UiPath beats revenue estimates despite slowing growth

UiPath reported second-quarter revenue of $410.3 million, exceeding Wall Street expectations of $397.8 million. This represents a 13% to 13.4% increase year over year. The company also reported non-GAAP earnings per share of $0.15, matching analyst consensus, and a net income of $36.1 million, up from $1.6 million in the previous year.

Despite the revenue beat and an increased full-year revenue forecast for fiscal 2027—now projected between $1.789 billion and $1.794 billion—the company's stock experienced significant volatility, dropping more than 7% in after-hours trading after an initial 10% surge.

Investors have expressed concerns regarding decelerating growth rates and the potential for artificial intelligence to disrupt the robotic process automation market. In response, UiPath is pivoting toward AI-powered business automation and agentic automations, developing AI agents capable of reasoning and working autonomously to maintain its competitive position.