TLDR
- UiPath delivered Q4 results with EPS of $0.30 compared to $0.26 analyst estimates, while revenue reached $481M versus $465M projected
- Shares declined over 5% during premarket hours following the earnings report
- Annual Recurring Revenue reached $1.853B by January 2026 end, growing 11% compared to the prior year
- Company revealed $200M in ARR generated by AI-powered products in a first-time disclosure
- Full-year FY27 revenue outlook of $1.754B–$1.759B exceeded the $1.74B analyst consensus
UiPath delivered impressive fourth-quarter results, yet investors responded with selling pressure. Shares fell over 5% in premarket hours Thursday following a quarter where the automation software company surpassed both top and bottom-line expectations.
The company reported adjusted earnings of $0.30 per share for its fiscal 2026 fourth quarter. Revenue totaled $481.11 million. Analysts surveyed by Wall Street had projected $0.26 per share alongside $464.88 million in revenue.
Fiscal 2026 annual revenue reached $1.611 billion, representing 13% growth year-over-year.
Annual Recurring Revenue stood at $1.853 billion as of January 31, 2026 — marking an 11% climb from the same period last year. Net-new ARR expanded 20% on a reported basis while declining 5% measured in constant currency terms.
UiPath provided its inaugural breakdown showing $200 million in ARR coming from AI-focused products. This category encompasses the company’s agents, Maestro orchestration platform, and Intelligent Document Processing solutions.
CEO Daniel Dines highlighted a semiconductor customer implementing agentic workflows within a two-week timeframe. He referenced One New Zealand as another example, where a four-to-five day order-to-cash cycle was compressed to 10 minutes — projecting $20 million in annual savings.
“We are at an inflection point in how software is built,” Dines said.
Revenue Outlook Tops Estimates While ARR Growth Questions Emerge
Looking ahead to Q1 fiscal 2027, UiPath projected revenue between $395 million and $400 million. The full-year FY27 revenue forecast ranged from $1.754 billion to $1.759 billion, surpassing the $1.74 billion consensus figure.
Management expects FY27 ARR to land between $2.051 billion and $2.056 billion — approximately 11% growth at the midpoint, running about 1.6% ahead of consensus expectations.
Morgan Stanley analyst Sanjit Singh highlighted that the guidance incorporates the WorkFusion acquisition impact, which finalized during Q1 FY27. He observed that on an organic basis, the ARR forecast suggests “relatively flat net-new ARR growth for the year.”
Truist Securities analyst Terry Tillman characterized it as a “solid quarter highlighted by continued sales execution and traction in AI-driven automation.”
Historic Profitability Achievement and Share Repurchase
UiPath generated GAAP net income of $282 million across the complete fiscal year — marking the company’s inaugural achievement of full-year GAAP profitability.
CFO Ashim Gupta raised the company’s long-term non-GAAP operating margin objective to 30%, an increase from previous targets. Non-GAAP operating income for FY26 totaled $370 million, translating to a 23% margin.
The quarter concluded with $1.7 billion in cash reserves and zero debt. UiPath finished its $1 billion stock repurchase initiative during the quarter while approving an additional $500 million buyback authorization.
Adjusted free cash flow for Q4 measured $182 million. Annual free cash flow accumulated to $372 million.
UiPath projected non-GAAP operating income of approximately $415 million for FY27, expecting non-GAAP gross margin to settle around 84%.
