UiPath: Mixed Earnings, EPS Outperforms
UiPath delivered robust earnings, surpassing expectations, yet narrowly missed on revenue guidance.
UiPath (PATH 0.77%), a leader in AI-driven business automation, recently released its fourth-quarter fiscal 2025 earnings report on March 12, 2025.
Key highlights included an EPS of $0.26, which beat analyst estimates of $0.20 by 30%, while total revenue reached $424 million, slightly missing the consensus analyst forecast of $425 million. Despite this small shortfall, the overall assessment of the quarter is broadly positive, as the company met its own revenue guidance and demonstrated strong earnings performance. However, UIPath’s stock price fell sharply on the news due to modest next-year guidance targets.
This financial update presents a mixed yet optimistic outlook as UiPath navigates a competitive landscape.
| Metric | Q4 2025 | Q4 Estimate | Q4 2024 | Y/Y Change |
|---|---|---|---|---|
| Revenue | $424M | $425M | $405M | 4.5% |
| EPS (Non-GAAP) | $0.26 | $0.20 | $0.22 | 18% |
| ARR | $1.666B | N/A | $1.461B | 14.0% |
| Non-GAAP Operating Income | $134M | N/A | $110.5M | 21.3% |
Source: SEC filings. Analyst estimates provided by FactSet.
Understanding UiPath’s Business
UiPath offers an AI-powered business automation platform. This platform automates everything from simple tasks to complex operations using technology like machine learning and natural language processing. Known for its end-to-end automation solutions, UiPath has prioritized AI integration to enhance its platform’s capabilities.
Recently, UiPath focused on strengthening its position through AI advancements and strategic partnerships. Its key success levers include AI-powered tool development, market expansion, and fostering strategic alliances. These areas are vital to support growth and enhance client offerings.
Quarter Highlights and Analysis
During the past quarter, UiPath introduced new AI products like Autopilot and Agent Builder, moving towards reshaping the automation field. These products aim to provide better automation capabilities, with CEO Daniel Dines noting that fiscal 2025 was a year of significant innovation.
Acquisitions, such as that of Peak AI Limited, have bolstered the company’s capabilities with vertically specialized solutions. Strategic partnerships with firms like Deloitte enhance its reach in fields like ERP, underscoring a focus on comprehensive market presence.
Revenue reached $424 million, a slightly below analyst forecasts but aligning with management’s guidance of $422 to $427 million. The ARR came to $1.666 billion, just shy of the midpoint of management’s guidance range from $1.669 to $1.674 billion.
UiPath posted a dollar-based net retention rate of 110%, capturing solid customer retention levels and growth from existing clients. However, CFO Ashim Gupta mentioned concerns over macroeconomic uncertainty that may impact future growth.
Looking Ahead
Looking towards fiscal 2026, UiPath projects revenue between $1.525 billion and $1.530 billion, with a planned non-GAAP operating income of approximately $270 million. The revenue target represents approximately 6.8% full-year revenue growth, down from 9.3% in fiscal year 2025. The adjusted operating income guidance suggests 12% year-over-year growth. Focus areas include stabilizing new ARR dollars and accelerating free cash flow growth.
Investors should watch UIPath’s ongoing product innovations and strategic partnerships. While there are concerns over macroeconomic uncertainty, UiPath appears positioned to leverage its robust automation platform towards sustained growth.
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