Investing.com -- UiPath saw its shares rise sharply after the company raised its annual guidance and reported Q2 results that beat Wall Street estimates. Moreover, the software maker upsized its share buyback program by $500 million.

UiPath Inc (NYSE:PATH) was up nearly 10% in premarket trading Friday.

UiPath reported adjusted earnings per share of $0.04 on revenue of $316 million. Analysts polled by Investing.com anticipated EPS of $0.03 on revenue of $303.7M.

Annual recurring revenue, or ARR, rose 18% to $1.55B in Q2 from a year earlier.

For Q3, the company forecast revenue in the range of $345M to $350M, in line with estimates of $347.31.

Looking further ahead, the company forecast full-year 2025 revenue in the range of $1.42B to $1.43B, up from the prior guidance of $1.40B million to $1.41B.

ARR outlook was also raised to the range of $1.665B to $1.67B, up from the previous $1.66B to $1.665B.

The company also announced that Chief Financial Officer Ashim Gupta would be taking on an expanded role as chief operating officer starting Sept. 5.

"UiPath posted a solid quarter versus expectations as the company showed signs of stability following a disappointing Q1/25 that included a sizable guide-down across the board," RBC Capital Markets analysts said in a post-earnings note.

Analysts reiterated a Sector Perform rating and the price target of $16 as they "continue to believe PATH is likely to remain range-bound over the medium term and await more signs of stable execution."

Meanwhile, Morgan Stanley assumed research coverage on UiPath stock after the report, with an Equal Weight rating and a price objective of $15.

The bank noted that UiPath "cleared a lowered bar with a solid beat and raise in Q2."

"The clear mandate is to become the platform for AI-driven automation in a category with emerging alternatives," they highlighted.

Yasin Ebrahim contributed to this report.

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