UiPath 2026 Q3 Earnings Strong Turnaround as Net Income Surges 1966%

UiPath (PATH) delivered a robust third-quarter performance, surpassing analyst expectations with revenue growth of 15.9% and a dramatic turnaround in profitability. The company raised its Q4 guidance, signaling confidence in its strategic execution and market momentum.

Revenue

UiPath’s total revenue reached $411.11 million in Q3 2026, up from $354.65 million a year ago. Licenses drove the growth with $150.04 million, while Subscription services contributed $247.57 million, reflecting strong recurring revenue trends. Professional services and other segments added $13.50 million, rounding out the financial performance.

Earnings/Net Income

The company returned to profitability with EPS of $0.37, reversing a $0.02 loss in 2025 Q3. Net income surged to $198.84 million, a 1966.2% improvement from a $10.65 million loss. This marked a significant turnaround after six consecutive years of quarterly losses in the same period. The EPS and net income figures underscore a successful cost-restructuring effort and operational efficiency gains.

Post-Earnings Price Action Review

A strategy of buying UiPath shares after a revenue raise quarter-over-quarter on the report date and holding for 30 days resulted in a -22.64% return, underperforming the benchmark’s 70.56% gain over three years. The approach’s CAGR of -8.27% and Sharpe ratio of -0.14 highlighted its high-risk, low-reward profile, with no maximum drawdown observed.

CEO Commentary

Daniel Dines, CEO, emphasized UiPath’s Q3 achievements, including $1.782 billion in ARR (up 11%) and $411 million in revenue (up 16%). He credited the team’s execution and partnerships with Microsoft, OpenAI, and NVIDIA for strengthening the platform’s competitive edge. Dines also highlighted customer momentum in agentic automation adoption.

Guidance

UiPath raised Q4 2026 revenue guidance to $462–467 million and projected ARR of $1.844–1.849 billion. Non-GAAP operating income is expected to reach ~$140 million, with ~$370 million in free cash flow and an 85% gross margin. Leadership remained cautious about near-term agentic automation impact but optimistic about long-term growth.

Additional News

UiPath expanded its AI ecosystem with integrations to Microsoft Azure AI Foundry, OpenAI, Google’s Gemini models, and NVIDIA. The company was recognized as a Leader in Gartner’s Magic Quadrant for AI-Augmented Software Testing and achieved ISO/IEC 42001:2023 certification for responsible AI management. Recent partnerships, including a Diamond Partner designation with R Systems, signaled deeper collaboration in complex automation deployments.