UiPath 2026 Q3 Earnings Surges to Profitability with 1966.2% Net Income Growth

UiPath’s Q3 2026 earnings exceeded expectations, with revenue up 15.9% to $411.11 million and a 1966.2% surge in net income. The company raised its Q4 revenue guidance to $462–467 million, reflecting strong performance and operational efficiency improvements.

Revenue

UiPath’s Q3 2026 revenue of $411.11 million was driven by robust performance across all segments. Licenses 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 revenue.

Earnings/Net Income

UiPath returned to profitability with EPS of $0.37 in 2026 Q3, reversing from a loss of $0.02 per share in 2025 Q3 (1950.0% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $198.84 million in 2026 Q3, representing a 1966.2% positive swing from the net loss of $-10.65 million in 2025 Q3. The Company has sustained losses for 6 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The company’s impressive 1966.2% net income increase signifies a strong turnaround, reversing prior losses and demonstrating improved profitability.

Price Action

The stock price of UiPath has climbed 3.48% during the latest trading day, has jumped 9.18% during the most recent full trading week, and has dropped 6.31% month-to-date.

Post-Earnings Price Action Review

The strategy of buying UiPath (PATH) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant underperformance. Over the past three years, the strategy delivered a return of -22.64%, vastly underperforming the benchmark return of 70.56%. The strategy's Sharpe ratio was -0.14, indicating substantial risk aversion, while the maximum drawdown was 0%, suggesting the strategy avoided losses during volatile periods. However, the high volatility of 59.74% implies significant price swings, and the CAGR of -8.27% shows a decline in the portfolio's value over the period.

CEO Commentary

Daniel Dines, Co-Founder, CEO, & Executive Chairman of the Board, highlighted UiPath’s Q3 2026 performance, exceeding guidance with 11% ARR growth ($1.782 billion) and 16% revenue growth ($411 million). He emphasized the company’s “unified end-to-end platform” combining deterministic automation and agentic AI, driving “measurable ROI” for customers. Strategic priorities include expanding partnerships with Microsoft, OpenAI, NVIDIA, and Snowflake, while advancing vertical solutions in healthcare and financial services. Dines noted progress in scaling agentic AI, with over 950 customers developing agents and 365,000 processes orchestrated via Maestro. Leadership expressed optimism about GAAP profitability for 2026, operational efficiency improvements, and momentum in federal sector deals. The tone was confident, underscoring UiPath’s “durable competitive edge” and innovation in Agentic Automation.

Guidance

UiPath guided Q4 2026 revenue of $462–467 million, ARR of $1.844–1.849 billion, and non-GAAP operating income of ~$140 million. Full-year 2026 non-GAAP adjusted free cash flow is expected at ~$370 million, with gross margin ~85%. Qualitative expectations include continued focus on operational efficiency, expansion of agentic AI adoption, and leveraging partnerships to drive platform stickiness. The CEO noted no material 2026 top-line impact from agentic solutions yet, as adoption remains early. FX headwinds, particularly in Japan, were acknowledged but offset by improved execution and customer retention (98% gross retention, 107% net retention).

Additional News

UiPath has expanded strategic partnerships with Microsoft, OpenAI, NVIDIA, and Snowflake to enhance its agentic automation platform. The company was recognized as a Leader in Gartner’s Magic Quadrant for Intelligent Document Processing and AI-Augmented Software Testing Tools. Additionally, UiPath reported a 107% dollar-based net retention rate, indicating strong customer loyalty and expansion.