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On Friday, Evercore ISI analyst Kirk Materne increased the price target on UiPath Inc. (NYSE: NYSE:PATH) stock, raising it to $15.00 from the previous $11.00, while keeping an In Line rating on the shares. Materne’s adjustment followed UiPath’s first-quarter results, which surpassed both the firm’s and the Street’s expectations. According to InvestingPro data, UiPath maintains a strong financial health score of GOOD, with a robust balance sheet showing more cash than debt.
UiPath reported an Annual Recurring Revenue (ARR) of $1,693 million, marking a 12% year-over-year increase and outpacing the anticipated $1,682 million by Evercore ISI and $1,689 million by Street consensus. The company’s revenue also saw a 6% rise to $357 million, compared to the $333 million forecast by both Evercore ISI and the Street. Additionally, UiPath achieved operating margins of 20%, significantly higher than the 13% predicted. The company’s impressive performance is underscored by its outstanding gross profit margin of 83% and healthy current ratio of 2.93, as reported by InvestingPro.
Management at UiPath acknowledged the ongoing variability in the macroeconomic environment, similar to what was observed in the first quarter. However, they now anticipate a favorable alignment and mixture of deals between the second and third quarters. Despite some persistent moratoriums, the public sector exhibited a slightly more positive quarter-over-quarter sentiment.
The analyst noted that UiPath’s first-quarter performance demonstrated the company’s capability to deliver robust results amidst an unpredictable backdrop. However, he also mentioned that in order to shift investor sentiment more positively, UiPath would likely need to show consistent outperformance, a stabilization of Net Revenue Retention (NRR), and additional evidence supporting its agentic strategy. Materne concluded that while the first quarter was a promising beginning to the fiscal year 2026, maintaining an In Line rating was appropriate until further proof of sustained momentum is evident. The new price target of $15.00 is based on approximately 4 times the expected Enterprise Value to CY26 revenue. InvestingPro analysis suggests the stock is slightly undervalued at current levels, with analysts projecting profitability this year. For deeper insights into UiPath’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, UiPath Inc. reported its first-quarter fiscal 2026 earnings, exceeding analyst expectations. The company announced an earnings per share (EPS) of $0.11, surpassing the forecast of $0.10. UiPath also reported a revenue of $357 million, which was significantly higher than the anticipated $332.83 million. This marks a 6% year-over-year increase in revenue, reflecting the company’s strategic focus on AI-driven automation. The company’s Annual Recurring Revenue (ARR) reached $1.693 billion, showing a 12% increase from the previous year. Non-GAAP operating income was reported at $70 million, with a 20% margin, while the non-GAAP adjusted free cash flow stood at $117 million, representing a 33% margin. UiPath also repurchased 21.9 million shares at an average price of $10.40. Looking ahead, UiPath projects second-quarter fiscal 2026 revenue between $345 million and $350 million, with full-year revenue guidance set at $1.549 billion to $1.554 billion.
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