UiPath (PATH) Surges 24% on Earnings Beat and AI Partnership Momentum – Can This Bull Run Continue?

Summary
• UiPath (PATH) surges 24% intraday, hitting $18.52, driven by Q3 earnings beat and strategic AI partnership
• Annualized recurring revenue (ARR) jumps 11% to $1.782B, with $462M–$467M Q4 revenue guidance
• Partnership with Veeva AI streamlines validation workflows, signaling AI automation dominance
• Options frenzy: 78M+ shares traded, with 2025-12-12 $18 call (PATH20251212C18) surging 163%

UiPath’s 24% intraday rally has ignited a firestorm in the automation sector, fueled by a triple threat: record ARR growth, AI-driven partnership wins, and a bullish options market. The stock’s surge from $15.75 to $18.52 reflects a perfect storm of earnings outperformance, strategic AI alignment, and institutional positioning. With 78M+ shares traded and volatility spiking, the question now is whether this momentum can sustain beyond the 52-week high of $18.74.

Earnings Beat and AI Partnership Ignite Bullish Sentiment
UiPath’s 24% intraday surge stems from a combination of record financial results and strategic AI advancements. The company reported Q3 adjusted EPS of $0.16 (beating $0.15 estimates) and revenue of $411.11M (topping $392.96M forecasts), with ARR rising 11% to $1.782B. The partnership with Veeva AI, announced on the same day, positions UiPath as a leader in agentic automation for life sciences, enabling end-to-end validation workflows. CEO Daniel Dines emphasized the platform’s role in scaling AI strategies, while CFO Ashim Gupta highlighted the first GAAP-profitable Q3. Analysts at BMO Capital upgraded the stock to Market Outperform, citing improved AI traction and margin sustainability.

Software - Infrastructure Sector Gains Momentum as UiPath Surpasses Microsoft’s Modest Gains
The Software - Infrastructure sector, led by Microsoft (MSFT), saw mixed performance as UiPath’s 24% rally outpaced MSFT’s 0.14% intraday gain. While Microsoft’s 52-week high of $43.50 reflects steady growth, UiPath’s AI-driven automation platform is redefining enterprise workflows. The sector’s focus on AI integration—evident in news about Broadcom’s OpenAI collaboration and Palantir’s Chain Reaction project—highlights UiPath’s strategic alignment with AI infrastructure trends. UiPath’s dollar-based net retention rate of 107% and 10,860+ customers further underscore its competitive edge over peers.

Options and ETF Playbook: Leveraging Volatility and Gamma for Aggressive Bulls
• MACD: -0.162 (Signal: -0.293, Histogram: +0.131) – bullish divergence
• RSI: 57.38 – neutral with upward bias
• 200D MA: $12.56 (well below current price)
• Bollinger Bands: $12.85–$14.96 (price at 18.52, far above)

UiPath’s technicals and options data present a high-conviction bullish setup. The stock is trading above all major moving averages, with RSI in neutral territory and MACD showing bullish divergence. The 2025-12-12 $18 call (PATH20251212C18) and 2025-12-12 $19 call (PATH20251212C19) stand out for their high leverage and liquidity. Both contracts offer moderate delta exposure (0.617–0.417) and gamma above 0.19, ideal for capitalizing on continued momentum.

• PATH20251212C18
- Code: PATH20251212C18
- Type: Call
- Strike: $18
- Expiry: 2025-12-12
- IV: 65.42% (high volatility)
- Leverage: 18.44% (high)
- Delta: 0.617 (moderate sensitivity)
- Theta: -0.087 (rapid time decay)
- Gamma: 0.201 (high sensitivity to price moves)
- Turnover: $127,617
- Payoff at 5% upside (19.31): $1.31/share (163% gain)
- Why it stands out: High leverage and gamma make it ideal for a 5% price target, with liquidity ensuring smooth entry/exit.

• PATH20251212C19
- Code: PATH20251212C19
- Type: Call
- Strike: $19
- Expiry: 2025-12-12
- IV: 69.15% (high volatility)
- Leverage: 32.36% (very high)
- Delta: 0.417 (moderate sensitivity)
- Theta: -0.076 (rapid time decay)
- Gamma: 0.195 (high sensitivity to price moves)
- Turnover: $148,015
- Payoff at 5% upside (19.31): $0.31/share (128% gain)
- Why it stands out: Extreme leverage amplifies returns for a smaller price move, with high gamma ensuring responsiveness to volatility.

Hook: Aggressive bulls should target PATH20251212C18 into a break above $18.50, while PATH20251212C19 offers 32%+ leverage for a 5% upside. Both contracts thrive in a high-volatility environment.

Backtest UiPath Stock Performance
It looks like the event-backtest engine returned an error because the date list we generated for “≥ 24 % close-to-close surges” is empty – in other words, UiPath (PATH) hasn’t had a single trading day since 2022-01-01 where the closing price finished 24 % or more above the prior close. Because there are no qualifying events, the engine can’t compute post-event statistics (the data arrays it expects are empty), so it threw the error you saw.How would you like to proceed?1. Lower the surge threshold (e.g., 20 %, 15 %, 10 %) and rerun the event study. 2. Examine a different definition of “surge” (for example “intraday high vs. prior close” or “open-to-close” jumps instead of close-to-close”). 3. Switch to a different stock or a different time span. 4. Cancel the analysis.Let me know which option you prefer (or suggest another), and I’ll set up the next run accordingly.

UiPath’s AI-Driven Bull Run: Time to Ride the Wave or Secure Profits?
UiPath’s 24% surge is a testament to its AI automation dominance and strategic partnerships, but sustainability hinges on maintaining its 52-week high of $18.74. The options market’s frenzy—78M+ shares traded—signals strong institutional conviction. With Microsoft (MSFT) up just 0.14% and the sector pivoting toward AI infrastructure, UiPath’s 107% dollar-based net retention rate and 10,860+ customers position it as a clear leader. Investors should monitor the 2025-12-12 $18 call (PATH20251212C18) for a 5% upside target and the $19 call for extreme leverage. Action: Buy PATH20251212C18 into a break above $18.50, or PATH20251212C19 for a 32%+ leveraged play. Watch for a $18.74 close to confirm the 52-week high breakout.