TLDR
- UiPath stock is up 25.5% since July 31, closing Friday at $16.01
- Q1 FY2027 revenue rose 17% year over year to $418 million
- The company posted GAAP operating income of $28 million, its first profitable quarter
- PATH now trades 20.8% above the analyst consensus price target of $13.25
- Q2 guidance points to a sequential revenue decline of 4.9% to a midpoint of $397.5 million
UiPath (PATH) closed Friday at $16.01, up 6.4% for the week and 25.5% since July 31. The stock has now surpassed analyst price targets from UBS, BMO Capital, DA Davidson, and Bank of America.
The move came after UiPath reported Q1 FY2027 results that showed real financial progress. Revenue climbed 17% year over year to $418 million. Annual recurring revenue rose 12% to $1.901 billion. GAAP operating income came in at $28 million, marking the company’s first profitable quarter under that accounting standard.
Net new ARR was $49 million, up from $27 million in the same period last year.
CEO Daniel Dines said the company’s “agentic products are moving from pilot to production,” pointing to a push into AI-driven automation as a core part of the growth plan.
Wall Street Still Cautious
Despite the rally, Wall Street has not moved to upgrade the stock. The 16-analyst consensus rating remains Neutral, with a price target of $13.25. That implies a potential drop of around 17% from Friday’s close.
UBS has a Hold rating and a $12 target. BMO Capital and DA Davidson also rate the stock Hold with $12 to $13 targets. Bank of America carries a Sell rating with a $13 target.
PATH trades 34.5% above its 50-day moving average and 25.7% above its 200-day average. The 52-week high sits at $19.84, leaving the stock about 19% below that peak.
The stock’s biggest single-day move came Thursday, when it climbed 9.3% to $16.68 before pulling back slightly on Friday. Volume on Friday was around 52.1 million, below the three-month average of 64.4 million.
Q2 Guidance Points to a Step Back
UiPath guided Q2 FY2027 revenue between $395 million and $400 million. The midpoint of $397.5 million is down 4.9% from Q1 but up 9.8% from Q2 last year.
Non-GAAP operating income for Q2 is expected at $75 million, down from $92 million in Q1.
ARR is projected to reach $1.932 billion by end of Q2, a 1.6% sequential increase.
The company’s gross margins remain high, giving it room to keep spending on AI development and sales without taking on debt.
One area of concern is churn among smaller customers. Most of the customer losses are coming from that segment, which raises questions about how fast net new ARR can grow from here.
Chief Accounting Officer Hitesh Ramani sold 50,000 PATH shares on Thursday and Friday for roughly $831,250. The transactions were made under a Rule 10b5-1 plan adopted in March, so they were pre-scheduled rather than a discretionary sale. Ramani still holds 235,052 shares directly.
UiPath’s next earnings report is scheduled for September 3 after market close.
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