UiPath 2026 Q3 Earnings Beats Expectations with 1966% Net Income Surge

UiPath (PATH) delivered Q3 2026 results that exceeded expectations, with revenue rising 15.9% year-over-year and net income turning sharply positive. The company also raised full-year guidance, reflecting stronger execution and customer traction.

Revenue

UiPath’s total revenue climbed to $411.11 million in Q3 2026, a 15.9% increase from $354.65 million in the same period last year. License revenue accounted for $150.04 million, while subscription services contributed $247.57 million—the largest segment. Professional services and other revenue totaled $13.50 million, showing robust growth in non-core offerings.

Earnings/Net Income

UiPath returned to profitability with an EPS of $0.37, reversing from a $0.02 loss in 2025 Q3—a 1950% improvement. Net income surged to $198.84 million, a 1966.2% increase from a $10.65 million loss. The turnaround underscores improved cost management and operational efficiency, though the company has faced sustained losses over the past six years. This marks a pivotal shift in financial performance.

Price Action

UiPath’s stock rose 3.48% on the day of the earnings report and gained 9.18% during the subsequent week. However, it declined 6.31% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying UiPath shares after a revenue beat and holding for 30 days yielded no return over the past three years, with a CAGR of 0.00% and an excess return of -11.79%. Despite a flat risk profile—marked by zero maximum drawdown and volatility—the approach underperformed the benchmark significantly. This suggests limited short-term momentum despite strong earnings.

CEO Commentary

Daniel Dines, CEO, emphasized the company’s outperformance of guidance, highlighting $1.782 billion in ARR (11% YoY growth) and strategic progress in agentic AI integration. Partnerships with Microsoft, OpenAI, and NVIDIA were cited as key drivers, alongside momentum from customer success stories like a $200 million savings projection for a major firm.

Guidance

UiPath raised 2026 Q4 revenue guidance to $462–467 million and projected ARR of $1.844–1.849 billion as of January 31, 2026. Non-GAAP operating income is expected to reach ~$140 million, with free cash flow targeting ~$370 million. The company remains cautious about agentic AI adoption, which it expects to remain in early phases for 2026.

Additional News

UiPath announced expanded integrations with Microsoft Azure AI Foundry, OpenAI, and NVIDIA, enhancing its agentic automation platform. The company was recognized as a Leader in Gartner’s Magic Quadrant for AI-Augmented Software Testing Tools, reinforcing its enterprise credibility. Additionally, UiPath joined AIUC-1 as a founding contributor to develop enterprise AI security standards, addressing growing regulatory scrutiny around AI agent deployment.