Is UiPath Stock a 2026 Buy for Long-Term Growth?

UiPath (NYSE: PATH) has long been a bellwether for the robotic process automation (RPA) sector, but its journey to profitability and relevance in the AI-driven automation era has been anything but linear. As 2026 approaches, the question for investors becomes whether the company's recent financial turnaround and aggressive AI integration efforts position it as a compelling long-term growth story.

A Profitability Turnaround Gains Traction

UiPath's Q3 2025 results underscore a meaningful shift in its financial trajectory. Revenue grew 16% year-over-year to $411 million, while Annual Recurring Revenue (ARR) reached $1.782 billion-a 11% increase, reflecting sustained customer demand according to Q3 financial results. More critically, the company reported non-GAAP operating income of $88 million, a stark contrast to the GAAP operating income of just $13 million. This divergence highlights UiPath's strategic focus on optimizing non-GAAP metrics, which exclude one-time expenses such as stock-based compensation and amortization.

The company's cash reserves of $1.52 billion as of October 31, 2025, further bolster its financial flexibility according to Q3 financial results. With a dollar-based net retention rate of 107%, UiPath is not only retaining its existing customer base but also upselling effectively-a critical metric for SaaS companies aiming to scale sustainably according to Q3 financial results. Analysts have taken note: UiPath's non-GAAP EPS of $0.16 in Q3 exceeded expectations by 9.6%, signaling improving operational efficiency according to financial reports.

AI-Driven Automation: A Strategic Reboot

UiPath's pivot toward AI-driven automation is arguably its most transformative move. At its FUSION 2025 event, the company unveiled a suite of agentic automation tools designed to bridge the gap between traditional RPA and generative AI. Key updates include:
- Enhanced Maestro Orchestration: A platform now capable of managing complex workflows that integrate AI agents, robots, and human tasks according to product announcements.
- Pre-Built Agentic Solutions: Industry-specific templates for sectors like financial services, healthcare, and retail, accelerating deployment timelines according to product announcements.
- Agent Builder: A low-code/no-code tool enabling developers to create AI agents tailored to niche business needs according to product announcements.

These advancements are not theoretical. UiPath's partnership with Snowflake, for instance, integrates its Agentic Automation Platform with Snowflake Cortex AI, enabling real-time decision-making on structured and unstructured data without overhauling legacy systems according to partnership news. Similarly, collaborations with NVIDIA, Google, and OpenAI signal a commitment to leveraging cutting-edge AI infrastructure according to partnership updates.

Governance remains a concern for enterprises adopting generative AI, but UiPath's AI Trust Layer-a governance policy within Automation Cloud Dedicated-addresses this by offering granular control over third-party AI capabilities according to release notes. This aligns with broader market trends where regulatory scrutiny of AI tools is intensifying.

Momentum or Mirage?

While UiPath's financials and product roadmap are undeniably stronger, skeptics may question whether its AI initiatives can translate into measurable revenue growth. The RPA market itself is maturing, with competition from Microsoft's Power Automate and Automation Anywhere. However, UiPath's focus on agentic automation-where AI agents autonomously execute tasks-positions it to capitalize on a niche that traditional RPA vendors struggle to address according to company news.

Customer case studies also add credibility. For example, Fiserv reported a 30% reduction in processing time for compliance workflows after adopting UiPath's agentic solutions according to product announcements. Such success stories could drive cross-industry adoption, particularly as enterprises seek to automate repetitive tasks with AI.

Verdict: A 2026 Buy for Long-Term Growth?

UiPath's recent performance suggests it is navigating a pivotal inflection point. The combination of improved profitability, a robust cash position, and a coherent AI strategy creates a compelling narrative for long-term investors. However, risks remain: the AI automation market is still unproven at scale, and UiPath's reliance on non-GAAP metrics could mask underlying GAAP challenges according to Q3 financial results.

For those with a multi-year horizon, the company's ability to integrate AI into its core offerings-while maintaining customer retention-could justify a bullish stance. The key will be whether UiPath can convert its product innovations into recurring revenue streams and sustain its current growth trajectory. If it succeeds, PATH could emerge as a cornerstone of the next-generation automation ecosystem.