UiPath 2026 Q1 Earnings Narrowed Net Loss by 21.5%

UiPath (PATH) reported its fiscal 2026 Q1 earnings on May 29, 2025. UiPath exceeded analysts’ expectations, posting a net loss of $22.55 million, significantly better than the anticipated $28.74 million. The company's revenue growth of 6% to $356.6 million also surpassed the consensus estimate of $332.9 million. Looking ahead, UiPath raised its guidance for fiscal 2026, expecting revenue between $1.549 billion and $1.554 billion, which exceeds Wall Street's target of $1.53 billion. This positive adjustment reflects the company's confidence in its strategy and market position.

Revenue

The total revenue for UiPath in the first quarter of fiscal 2026 rose to $356.62 million, marking a 6.4% increase from the previous year. This growth was driven by several business segments, including license sales, which generated $128.29 million. Subscription services contributed significantly to the revenue, with earnings of $217.30 million. Additionally, professional services and other segments added $11.04 million to the total revenue. These robust figures reflect the company's successful expansion across its diverse business operations.

Earnings/Net Income

UiPath narrowed its losses in fiscal Q1 2026, reporting a net loss of $22.55 million, a 21.5% improvement compared to the $28.74 million loss in Q1 2025. The loss per share reduced to $0.04 from $0.05, showcasing a positive trend, although the company remains in a loss position. This positive reduction in losses indicates a favorable EPS trend for UiPath.

Price Action

The stock price of UiPath has edged down 1.67% during the latest trading day, climbed 6.07% during the most recent full trading week, and jumped 11.55% month-to-date.

Post-Earnings Price Action Review

The strategy of buying PATH when revenues beat and holding for 30 days has historically resulted in significant losses for investors. This approach yielded a return of -62.62%, with a Sharpe Ratio of -0.37, and experienced a maximum drawdown of -76.76%. Such performance significantly underperformed the benchmark, which returned 26.45% over the same period, indicating that this strategy carried substantial risk without generating positive returns. Investors following this approach faced considerable volatility and downside risk, highlighting the importance of careful strategy selection and market timing in investment decisions.

CEO Commentary

Guidance

Additional News

In recent company developments, UiPath has announced a strategic partnership with Google Cloud to transform medical processes through AI. This collaboration, unveiled at Google Cloud Next 2025, aims to leverage generative AI and agentic automation to enhance medical record summarization. Additionally, UiPath has made strides in its open agentic ecosystem through bi-directional integrations with Microsoft Copilot Studio, enabling seamless orchestration of AI agents across platforms. Lastly, UiPath launched its Test Cloud, an innovative approach to software testing employing advanced AI to boost productivity throughout the testing lifecycle. These initiatives underscore UiPath’s commitment to expanding its technological capabilities and market presence.