UiPath (PATH) quarter year UiPath Financial Results Summary
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UiPath (PATH) Q2 2027: Revenue Growth Continues, Operating Income Improves — Positive Outlook
UiPath, Inc. (NYSE: PATH) reported its second quarter fiscal 2027 results, showcasing a revenue increase of $410 million, which represents a growth of $49 million or +13% year-over-year. This performance indicates a solid quarter compared to the previous year, reflecting the company's ongoing momentum in the automation sector.
Key Financial Metrics:
- Revenue: $410 million, up $49 million or +13% YoY
- Annualized Renewal Run-rate (ARR): $1.938 billion, up $209 million or +12% YoY
- GAAP Operating Income: $32 million
- Non-GAAP Operating Income: $89 million
- Net New ARR: $37 million
- Dollar-Based Net Retention Rate: 109%
- Net Cash Flow from Operations: $31 million
- Non-GAAP Adjusted Free Cash Flow: $31 million
- Cash, Cash Equivalents, and Marketable Securities: $1.405 billion as of July 31, 2026
Analyst View:
This quarter is a positive outcome for shareholders, as the company not only achieved revenue growth but also improved its operating income significantly. The GAAP operating income of $32 million marks a notable recovery from a loss of $20 million in the same quarter last year. Furthermore, the non-GAAP operating income of $89 million reflects strong operational efficiency and disciplined execution, which is crucial for sustaining growth in a competitive landscape.
The ARR growth of 12% year-over-year, reaching $1.938 billion, is particularly encouraging, as it indicates that UiPath is successfully expanding its customer base and retaining existing clients, evidenced by a dollar-based net retention rate of 109%. This metric suggests that existing customers are increasing their spending on UiPath's solutions, which is a strong indicator of customer satisfaction and product value.
Leadership Changes:
UiPath also announced leadership changes aimed at driving the next phase of growth. Ashim Gupta will focus solely on his role as Chief Operating Officer, while Hitesh Ramani has been promoted to Chief Financial Officer. These changes are expected to enhance accountability and execution across the company's operations, which could further bolster performance in upcoming quarters.
Financial Outlook:
For the third quarter of fiscal 2027, UiPath expects:
- Revenue: $440 million to $445 million
- ARR: $1.992 billion to $1.997 billion as of October 31, 2026
- Non-GAAP Operating Income: Approximately $100 million
For the full fiscal year 2027, the company anticipates:
- Revenue: $1.789 billion to $1.794 billion
- ARR: $2.065 billion to $2.070 billion as of January 31, 2027
- Non-GAAP Operating Income: Approximately $445 million
These projections indicate a continued upward trajectory, which should be closely monitored by investors.
Forward Catalyst:
Investors should keep an eye on the upcoming product launches and enhancements, particularly the introduction of new AI-driven capabilities like Maestro Case and Maestro Flow. These innovations are designed to improve business orchestration and automation, potentially expanding UiPath's market share and enhancing its competitive edge. Additionally, the effectiveness of the new leadership team in executing the company's growth strategy will be critical in the coming quarters.
In summary, UiPath's Q2 2027 results reflect a strong performance with significant revenue growth and improved profitability. The leadership changes and positive guidance for the next quarter further enhance the outlook for shareholders, making this a quarter to watch as the company continues to innovate and expand in the automation space.
Condensed Consolidated Statements of Income (in thousands)
Note: The amounts in the following table are in thousands.
| Three Months Ended July 31, 2026 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2026 | Six Months Ended July 31, 2025 | |
|---|---|---|---|---|
| Revenue | $410,207 | $361,728 | $828,638 | $718,324 |
| Cost of revenue | ||||
| Licenses | $1,462 | $1,200 | $3,126 | $2,468 |
| Subscription services | $39,679 | $38,229 | $83,667 | $76,697 |
| Professional services | $39,446 | $24,951 | $70,722 | $49,072 |
| and other | ||||
| Total cost of revenue | $80,587 | $64,380 | $157,515 | $128,238 |
| Gross profit | $329,620 | $297,348 | $671,123 | $590,086 |
| Operating expenses | ||||
| Sales and marketing | $164,642 | $166,303 | $332,465 | $325,983 |
| Research and development | $83,393 | $98,341 | $176,295 | $193,146 |
| General and administrative | $50,066 | $52,889 | $102,772 | $107,524 |
| Total operating expenses | $298,101 | $317,533 | $611,532 | $626,653 |
| Operating income | $31,604 | $-20,185 | $59,591 | $-36,567 |
| Interest income | $10,769 | $12,004 | $21,170 | $24,652 |
| Other income (expense), net | $10,482 | $11,508 | $13,062 | $-4,456 |
| Income (loss) before income taxes | $52,855 | $3,327 | $93,823 | $-16,371 |
| Provision for income taxes | $16,766 | $1,743 | $35,209 | $4,570 |
| Net income (loss) | $36,089 | $1,584 | $58,614 | $-20,901 |
| Net income (loss) per share, basic | $0.07 | $0.00 | $0.11 | $-0.04 |
| Net income (loss) per share, diluted | $0.07 | $0.00 | $0.11 | $-0.04 |
| Weighted-average shares used to compute net income per share, basic | 519,681 | 536,169 | 521,586 | 542,224 |
| Weighted-average shares used to compute net income per share, diluted | 523,018 | 542,865 | 525,375 | 542,224 |
Condensed Consolidated Balance Sheets (in thousands)
Note: The amounts in the following table are in thousands.
| Assets | As of July 31, 2026 | As of January 31, 2026 |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | $607,414 | $871,157 |
| Restricted cash | $1,475 | $438 |
| Marketable securities | $676,576 | $601,329 |
| Accounts receivable, net of allowance for credit losses of $6,400 and $5,222 | $307,112 | $488,265 |
| Contract assets | $135,222 | $92,440 |
| Deferred contract acquisition costs | $86,526 | $84,739 |
| Prepaid expenses and other current assets | $112,305 | $105,577 |
| Total current assets | $1,926,630 | $2,243,945 |
| Marketable securities, non-current | $121,035 | $216,990 |
| Contract assets, non-current | $4,832 | $1,946 |
| Deferred contract acquisition costs, non-current | $165,022 | $153,708 |
| Property and equipment, net | $46,436 | $46,014 |
| Operating lease right-of-use assets | $63,470 | $64,472 |
| Intangible assets, net | $101,479 | $19,989 |
| Goodwill | $179,481 | $125,310 |
| Deferred tax assets | $230,087 | $233,401 |
| Other assets, non-current | $68,895 | $73,425 |
| Total assets | $2,907,367 | $3,179,200 |
| Liabilities and stockholders' equity | ||
| Current liabilities | ||
| Accounts payable | $16,848 | $10,161 |
| Accrued expenses and other current liabilities | $156,930 | $170,496 |
| Accrued compensation and employee benefits | $89,853 | $121,029 |
| Deferred revenue | $543,627 | $603,737 |
| Total current liabilities | $807,258 | $905,423 |
| Deferred revenue, non-current | $71,722 | $103,568 |
| Operating lease liabilities, non-current | $69,438 | $70,940 |
| Other liabilities, non-current | $10,398 | $16,682 |
| Total liabilities | $958,816 | $1,096,613 |
| Commitments and contingencies | ||
| Stockholders' equity | ||
| Class A common stock | $5 | $5 |
| Class B common stock | $1 | $1 |
| Treasury stock | $-1,092,834 | $-833,905 |
| Additional paid-in capital | $4,673,653 | $4,585,430 |
| Accumulated other comprehensive income | $14,657 | $36,601 |
| Accumulated deficit | $-1,646,931 | $-1,705,545 |
| Total stockholders’ equity | $1,948,551 | $2,082,587 |
| Total liabilities and stockholders’ equity | $2,907,367 | $3,179,200 |
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