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On Tuesday, Truist Securities analysts reaffirmed a Hold rating and a $13.00 price target for UiPath Inc. (NYSE: NYSE:PATH), which currently trades at $12.90. The analysts highlighted a notable revenue beat for the company, with earnings exceeding expectations by over $20 million at the midpoint. This performance came without significant one-time items or foreign exchange impacts. InvestingPro data shows the company maintaining impressive revenue growth of 7.21% and an industry-leading gross profit margin of 82.66%.
UiPath’s management credited the revenue success to strong execution, particularly in the $100K+ annual recurring revenue customer segment. They acknowledged some foreign exchange volatility during the quarter but emphasized its immaterial effect. The company also discussed its fiscal year 2026 revenue guidance, noting that differences in revenue recognition across contracts could lead to variability in reported results. According to InvestingPro analysis, while the company isn’t currently profitable, analysts expect positive earnings this fiscal year, with 11 analysts recently revising their earnings estimates upward. Want deeper insights? InvestingPro offers 12 additional exclusive tips for PATH stock.
UiPath’s management indicated that with restructuring efforts largely completed, the focus is now on balancing growth with operational efficiency. They are investing in high-performing areas while maintaining discipline in areas like stock-based compensation. Although income guidance for the year has been raised, free cash flow guidance remains unchanged due to timing mismatches between collections and disbursements. The company maintains a strong financial position with a current ratio of 2.95, and InvestingPro’s Financial Health Score rates the company as "GOOD" with a score of 2.84.
The company also provided an update on its federal pipeline, mentioning that while activity and closing deals remain somewhat uneven, they recently secured an on-time win with the U.S. Air Force. Renewal activity was described as strong, despite the overall sector activity being uneven. Based on InvestingPro’s Fair Value analysis, PATH currently appears slightly undervalued, suggesting potential upside for investors. Access the comprehensive Pro Research Report, available for PATH and 1,400+ other US stocks, for detailed valuation analysis and expert insights.
In terms of technological advancements, UiPath’s agentic AI strategy is set apart from traditional robotic process automation. This approach supports probabilistic automation and adaptive execution. Feedback on the company’s orchestration layer, UiPath Maestro, has been positive, and partners have shown enthusiasm for agentic AI, with many participating in its Partner Academy course. Management described early engagement and feedback from customers and partners as validating the company’s direction in agentic automation. The company’s strong liquidity position, with liquid assets exceeding short-term obligations, provides a solid foundation for these technological investments.
In other recent news, UiPath Inc. reported a Q1 Annual Recurring Revenue (ARR) of $1.693 billion, reflecting a 12% year-over-year increase and slightly surpassing BofA Securities’ projection. Analysts from Canaccord Genuity raised their price target for UiPath to $16, maintaining a Buy rating, citing optimism about the company’s potential for growth and improved financial performance. Meanwhile, BofA Securities increased their price target to $12, while keeping an Underperform rating, acknowledging more stable execution in the company’s recent results. TD Cowen also raised their price target to $15, maintaining a Hold rating, and noted that UiPath’s first-quarter results exceeded expectations, with revenue and EBIT figures outperforming estimates. RBC Capital Markets adjusted their price target to $15 as well, with a Sector Perform rating, following UiPath’s stable quarterly performance and upward revision of guidance figures for fiscal year 2026. KeyBanc maintained a Sector Weight rating, highlighting UiPath’s positive trajectory, particularly with larger enterprise customers and successful U.S. federal renewals. Across these updates, analysts have shown varying levels of optimism about UiPath’s potential, with some caution due to broader economic factors.
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