UiPath, Inc. (NYSE: PATH) reported second-quarter fiscal 2027 revenues of $410.3 million, a 13.4% year-over-year increase, surpassing the consensus estimate of $397.8 million. Despite this growth, shares dropped 24% since the earnings release on September 3, driven by a cautious outlook as the fiscal third-quarter revenue midpoint of $442.5 million is below analyst expectations of $444.3 million.
Annual Recurring Revenue (ARR) reached $1.938 billion, up 12.5% year-over-year, with net new ARR at $37 million—19.4% higher than the previous year but lower than the first quarter’s $49 million. UiPath’s non-GAAP operating income rose 42.9% annually to $89 million, with a stable operating margin of 22%. The company ended the quarter with $1.405 billion in cash and no debt after repurchasing 2.4 million shares at an average price of $9.63.
Looking ahead, UiPath raised its full-year revenue guidance to between $1.789 billion and $1.794 billion, indicating a modest midpoint increase. However, the ARR growth rate remains cautious, reflecting investor concerns over competition in AI automation from companies like ServiceNow and Salesforce, which present significant challenges in the market.
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