UiPath 2026 Q3 Earnings Beats Expectations with 1966.2% Net Income Surge

UiPath (PATH) delivered a strong Q3 2026 earnings report, exceeding expectations with a 1966.2% year-over-year net income surge and revenue growth of 15.9%. The company raised Q4 guidance, signaling confidence in its turnaround and AI-driven automation strategy.

Revenue

UiPath’s total revenue rose 15.9% year-over-year to $411.11 million, driven by robust performance across segments. License sales contributed $150.04 million, while subscription services accounted for $247.57 million. Professional services and other revenue added $13.50 million, rounding out the total. The subscription segment’s growth, up 19.7% year-over-year, underscored the company’s shift toward recurring revenue models.

Earnings/Net Income

UiPath returned to profitability with EPS of $0.37 in Q3 2026, reversing a $0.02 loss in the prior-year period. Net income surged to $198.84 million, a 1966.2% increase from a $10.65 million loss in 2025 Q3. The turnaround reflects improved operational efficiency and a strategic pivot to high-margin AI integrations. This marked a significant milestone after six consecutive years of quarterly losses in the same period.

Price Action

UiPath’s stock price climbed 3.48% on the day of the earnings report, with a 9.18% gain in the subsequent trading week. However, the stock fell 6.31% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying UiPath shares following a revenue beat quarter-over-quarter and holding for 30 days yielded no return over three years, with a CAGR of 0.00% and excess return of -11.79%. Despite a flat risk profile (maximum drawdown and volatility of 0.00%), the underperformance against the benchmark highlighted challenges in translating earnings momentum into sustained stock gains.

CEO Commentary

Daniel Dines, CEO, emphasized UiPath’s “unified platform architecture” combining deterministic automation and agentic AI, driving measurable ROI. The company achieved $1.782 billion in ARR and $411 million in revenue, with a $59 million net new ARR from a top client. Strategic priorities include expanding agentic capabilities and deepening partnerships with Microsoft, OpenAI, and NVIDIA.

Guidance

UiPath raised Q4 2026 revenue guidance to $462–467 million (FX-adjusted) and projected ARR of $1.844–1.849 billion. Non-GAAP operating income is expected at ~$140 million, with full-year adjusted free cash flow of ~$370 million. CFO Ashim Gupta noted FX headwinds but stressed prudent assumptions amid macroeconomic uncertainty.

Additional News

UiPath’s recent non-earnings-related developments include: 1) Recognition as a Leader in Gartner’s Magic Quadrant for AI-Augmented Software Testing Tools, validating its enterprise AI capabilities; 2) New integrations with Microsoft Azure AI Foundry, OpenAI, Google’s Gemini models, and NVIDIA, enhancing its agentic automation ecosystem; and 3) Achievement of ISO/IEC 42001:2023 certification for responsible AI management, reinforcing trust in its governance framework. These milestones underscore UiPath’s strategic pivot toward AI-driven automation and enterprise scalability.

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