Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com -- UiPath Inc (NYSE:PATH) shares rose 2.8% in after-hours trading Thursday after the automation software vendor posted stronger-than-expected fiscal second-quarter results and raised its annual guidance. The company’s robust performance was underpinned by enterprise adoption of its agentic automation platform and solid momentum in annual recurring revenue (ARR), which climbed double digits on the year.
For the quarter ended July 31, UiPath reported earnings per share of $0.15 on an adjusted basis, ahead of the $0.09 consensus estimate. Revenue came in at $361.7 million, marking a 14% year-over-year increase and beating Wall Street’s projection of $347.4 million.
ARR reached $1.723 billion, up 11% from a year ago, while net new ARR came in at $31 million. The company posted a non-GAAP operating income of $62 million and delivered adjusted free cash flow of $45 million, with $1.52 billion in cash and equivalents on the balance sheet.
“We delivered a strong second quarter with ARR growing 11% year-over-year to $1.723 billion, reflecting the team’s improved execution and the growing momentum of our agentic capabilities,” said Daniel Dines, UiPath Founder and Chief Executive Officer. Chief Operating Officer and CFO Ashim Gupta added, “Our second quarter results reflect strong execution across the business, exceeding the high end of our guidance across all key financial metrics.”
Started in 2005 and headquartered in New York, UiPath has been expanding its suite of agentic and orchestration tools to support enterprise digital transformation. The firm recently announced a strategic partnership with HCLTech and was again recognized as a leader in Gartner’s Magic Quadrant for Robotic Process Automation for the seventh consecutive year.
Looking ahead, UiPath guided fiscal third-quarter revenue between $390 million and $395 million, above consensus expectations of $384.6 million. For the full year, the company expects revenue of $1.571 billion to $1.576 billion, also exceeding analyst forecasts.
Management highlighted ongoing investments in innovation and operational discipline as key growth drivers entering the second half of the fiscal year. The appointment of former F5 and Microsoft executive Michael Atalla as Chief Marketing Officer suggests a sharper focus on global expansion and marketing execution.
Investor sentiment was buoyant following the report, as UiPath’s earnings beat and upward guidance suggest growing traction for its automation offerings despite a cautious IT spending environment. The company’s continued scaling of its agentic capabilities may position it as a key player in the ongoing transformation of enterprise operations.