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UiPath (NYSE:PATH) climbed about 13% premarket after its Q1 results and updated guidance offered a refreshed riskreward backdrop.
The company posted ARR of $1.693 billion, up 12% year-over-year, and projected FY 2026 revenue of $1.5491.554 billion versus the $1.52 billion consensus. CEO Daniel Dines hailed the launch of its agentic automation platform as one of the most important and successful product introductions in our history, and highlighted a multiyear, multimillion-dollar deal with a Fortune 15 health company alongside new AI partnerships.
CFO Ashim Gupta said macro and FX headwinds remain minimal after adjusting revenue linearity. Evercore raised its price target to $15 (In Line), citing solid Q1 execution in a choppy backdrop, while Wells Fargo kept an Equal Weight rating and lifted its target to $12.
Investors should care because UiPath is proving it can beat low expectations even amid macro uncertainty, and accelerating agentic automation adoption could drive renewed momentum and bigger enterprise deals.
With PATH set to update on FCF and ARR progress throughout the year, markets will watch for sustained outperformance, improving NRR and further proof points around its AI-driven RPA strategy.
This article first appeared on GuruFocus.