UiPath stock hits 52-week low at $9.58 amid market challenges

UiPath Inc. (NYSE:PATH), a leading enterprise automation software company, has seen its stock price touch a 52-week low, reaching $9.58. This latest price level reflects a significant downturn from the company’s previous performance, with the stock down over 51% in the past year. Despite current challenges, InvestingPro analysis suggests the stock is undervalued, with impressive gross profit margins of 83% and a strong current ratio of 3.13 indicating solid financial health. Investors are closely monitoring UiPath’s strategic moves as the company navigates through a challenging market environment that has seen many technology stocks retreat from their highs. While the company posted revenue growth of 16.5% in the last twelve months, the decline to this 52-week low signals a period of investor caution. For deeper insights into UiPath’s valuation and growth prospects, InvestingPro offers 8 additional key tips and a comprehensive Pro Research Report, helping investors make informed decisions in these uncertain times.

In other recent news, UiPath Inc. reported its fourth-quarter earnings, revealing a revenue of $423.6 million, which slightly missed analyst projections. The company’s Annual Recurring Revenue (ARR) showed a growth of 14% to $1,666 million, falling short of expectations from Evercore ISI and other market analysts. UiPath’s fiscal year 2026 guidance projects a 9% ARR growth, which is below the consensus estimate of 12%, attributed to challenges in the U.S. federal sector and broader economic uncertainties. Following these results, several firms adjusted their outlook on UiPath, with Scotiabank (TSX:BNS) and Evercore ISI both reducing their price targets to $12.00, citing concerns over the company’s growth prospects and macroeconomic factors.

KeyBanc Capital Markets maintained a Sector Weight rating, highlighting geopolitical issues impacting UiPath’s U.S. federal business. Meanwhile, Needham analysts kept a Hold rating on the stock, noting delays in deal closures within the U.S. Federal segment. Mizuho (NYSE:MFG) Securities also lowered its price target to $12.00, maintaining a Neutral rating, and emphasized macroeconomic uncertainties affecting UiPath’s growth. Despite these challenges, there is optimism surrounding UiPath’s adoption of cloud-based services and agentic innovations, which could drive future growth. The company’s strategic focus on artificial intelligence and recent acquisitions are seen as efforts to bolster its position in the evolving technological landscape.

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