UiPath (PATH) delivered a solid fiscal Q2 but the results provided limited evidence of sustained growth re-acceleration, with the revenue beat driven mainly by professional services and licenses rather than subscriptions.
Management highlighted improving annual recurring revenue growth, execution and cost discipline, while guiding for fiscal Q3 ARR of about $1.99 billion to $2.00 billion and revenue of $440 million to $445 million, with adjusted operating income expected at $100 million.
Oppenheimer said the company also raised fiscal 2027 guidance, with ARR now expected at $2.065 billion to $2.07 billion; revenue at $1.789 billion to $1.794 billion, and adjusted operating income at $445 million.
The analysts highlighted Q2 net new ARR growth of 19% to $37 million and 109% net retention, but noted that subscription revenue missed consensus and Q3 guidance implied a 4% year-over-year decline in net new ARR at the midpoint.
Oppenheimer maintained its perform rating on the stock.
Shares of UiPath fell more than 13% in recent Friday trading.
Price: 15.72, Change: -2.51, Percent Change: -13.75
