UiPath Reports Strong Q2 Earnings with 14% Revenue Growth and 11% ARR Growth

UiPath Inc reported Q2 2026 earnings with revenue of $362 million, up 14% YoY, and annual recurring revenue (ARR) of $1.723 billion, up 11% YoY. The company's cloud ARR increased by over 25%, and non-GAAP operating income reached $62 million, representing a 17% margin. UiPath has around 10,820 customers and a dollar-based gross retention rate of 98%. The company guided Q3 2026 revenue to be between $390 million and $395 million and full fiscal year 2026 revenue between $1.571 billion and $1.576 billion.

UiPath Inc. (NASDAQ: UIPATH) reported its Q2 2026 earnings, showcasing robust growth across various financial metrics. The company reported revenue of $362 million, up 14% year-over-year (YoY), and annual recurring revenue (ARR) of $1.723 billion, an 11% YoY increase. The company's cloud ARR surged by over 25%, while non-GAAP operating income reached $62 million, representing a 17% margin [1].

The quarter was marked by significant advancements in agentic automation adoption. UiPath has seen nearly 1 million agent runs and over 450 customers actively developing agents, with Maestro orchestrating over 170,000 process instances. This growth in agentic automation has facilitated increased commercial momentum and deepened engagement within the install base [1].

UiPath's public sector performance also showed strong momentum, with the United States Navy expanding its IDP initiative and deploying over 200 automations. Recent wins in the U.S. Coast Guard and Veterans Affairs further bolstered the company's position in this segment [1].

The company guided Q3 2026 revenue to be between $390 million and $395 million and full fiscal year 2026 revenue between $1.571 billion and $1.576 billion. This guidance reflects stabilization in the U.S. public sector, improving partner momentum, and the growing traction of agentic automation [1].

During the earnings call, executives emphasized the role of agentic's consumption-based pricing model and its potential to drive future revenue growth. However, there were contradictions in the earnings call regarding the sustainability of dollar-based net retention (DBNR) and the impact of agentic automation on ARR growth [1].

The company's non-GAAP operating income increased to $62 million, representing a 17% margin and an improvement of more than 1,500 basis points year-over-year. This improvement was driven by operational leverage, disciplined execution, and the benefits of agentifying UiPath from within [1].

UiPath's strong performance in Q2 2026 underscores its ability to navigate macroeconomic uncertainty and maintain growth momentum. The company's focus on agentic automation and strategic partnerships positions it well for future growth and expansion.

References
[1] https://www.ainvest.com/news/uipath-q2-2026-earnings-call-contradictions-emerge-macroeconomic-outlook-agentic-impact-arr-dbnr-stabilization-2509/