Key Takeaways
- UiPath delivered Q4 results surpassing projections with EPS of $0.30 versus the anticipated $0.26, while revenue reached $481M compared to the $465M forecast
- Shares declined over 5% during premarket hours despite exceeding expectations
- Annual Recurring Revenue (ARR) reached $1.853B by January 2026’s conclusion, representing an 11% annual increase
- Company leadership revealed $200M in ARR generated from artificial intelligence products in an unprecedented disclosure
- Full-year fiscal 2027 revenue projection of $1.754B–$1.759B exceeded the Street’s $1.74B estimate
UiPath delivered impressive fourth-quarter results, yet investors responded with skepticism. Shares tumbled over 5% during Thursday’s premarket session despite the automation software company exceeding both top and bottom-line expectations.
During the fourth quarter of fiscal 2026, UiPath reported adjusted earnings of $0.30 per share alongside revenue totaling $481.11 million. Analysts surveyed by Wall Street had projected $0.26 per share in earnings and $464.88 million in sales.
Total revenue for the complete fiscal year 2026 reached $1.611 billion, marking a 13% year-over-year improvement.
Annual Recurring Revenue climbed to $1.853 billion at the close of January 31, 2026 — representing an 11% uptick versus the prior year. Net-new ARR expanded 20% on a reported basis while declining 5% when measured in constant currency.
In an inaugural disclosure, UiPath revealed $200 million in ARR derived exclusively from its artificial intelligence product portfolio. This encompasses its agents, the Maestro orchestration platform, and Intelligent Document Processing solutions.
Chief Executive Daniel Dines highlighted a semiconductor customer that implemented agentic workflows within a two-week timeframe. He additionally referenced One New Zealand, which compressed a four-to-five day order-to-cash cycle down to just 10 minutes — projecting $20 million in annual cost savings.
“We are at an inflection point in how software is built,” Dines stated.
Forward Outlook Exceeds Projections, Though ARR Expansion Questions Persist
For the first quarter of fiscal 2027, UiPath projected revenue ranging from $395 million to $400 million. The complete FY27 revenue forecast landed between $1.754 billion and $1.759 billion, surpassing the $1.74 billion Street consensus.
The automation provider anticipates FY27 ARR falling between $2.051 billion and $2.056 billion — approximately 11% expansion at the midpoint, roughly 1.6% above analyst expectations.
Morgan Stanley’s Sanjit Singh highlighted that the outlook incorporates contributions from the WorkFusion transaction, which concluded during Q1 FY27. He observed that on an organic calculation, the ARR forecast suggests “relatively flat net-new ARR growth for the year.”
Truist Securities’ Terry Tillman characterized it as a “solid quarter highlighted by continued sales execution and traction in AI-driven automation.”
Historic Profit Achievement and Share Repurchase Program
UiPath recorded GAAP net income totaling $282 million across the complete fiscal year — marking the company’s inaugural achievement of full-year GAAP profitability throughout its entire operating history.
Chief Financial Officer Ashim Gupta elevated the organization’s long-term non-GAAP operating margin objective to 30%, increasing from previous targets. Non-GAAP operating income during FY26 totaled $370 million, representing a 23% margin.
The enterprise concluded Q4 holding $1.7 billion in cash reserves with zero debt obligations. It finalized its $1 billion stock buyback initiative during the quarter and greenlit an additional $500 million repurchase authorization.
Fourth-quarter adjusted free cash flow measured $182 million. Complete fiscal year free cash flow attained $372 million.
UiPath projected non-GAAP operating income approximating $415 million for FY27, anticipating non-GAAP gross margin near 84%.
