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1. Company Snapshot

1.a. Company Description

UiPath Inc.provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan.The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.


Its platform combines artificial intelligence with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, which enables users to discover, analyze, and identify processes to automate in a centralized portal; offers low-code development environments that allows users in an organization to create attended and unattended automations without any prior knowledge of coding; deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications; offers centralized tools designed to manage, test, and deploy automations and ML models across the enterprise; allows customers to manage long running processes that orchestrate work between robots and humans; and enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards.In addition, the company provides maintenance and support for its software, as well as professional services, such as training and implementation services to facilitate the adoption of its platform.It serves banking, healthcare, financial services, and government entities.


UiPath Inc.was founded in 2005 and is headquartered in New York, New York.

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1.b. Last Insights on PATH

Breaking News: UiPath Inc reported strong Q3 earnings, exceeding expectations and driving a significant stock surge. The company's focus on automation and AI, particularly "agentic AI", appears to be resonating with investors. Key metrics showed improvement, with the company providing upbeat guidance. Analysts and investors are optimistic about UiPath's prospects. Some analysts have reiterated their buy ratings, citing the company's strong position in the automation and AI space. Analysts at several firms have maintained a buy or hold recommendation, with no sell recommendations currently in place.

1.c. Company Highlights

2. UiPath Delivers Strong Q3 with Profitability and Growth Momentum

UiPath's third-quarter fiscal 2026 revenue grew 16% to $411 million, with ARR totaling $1.782 billion, up 11%. The company's disciplined approach to operational efficiency resulted in its first GAAP profitable third quarter, with GAAP operating income of $13 million, and non-GAAP operating income of $88 million, representing a 21% margin. EPS came out at $0.365, significantly beating estimates of $0.14. The strong financial performance was driven by a dollar-based net retention rate of 107% and a strong pipeline of customers, with over 950 companies developing agents and 365,000 processes orchestrated with Maestro.

Publication Date: Dec -04

📋 Highlights
  • Revenue & ARR Growth:: Q3 FY2026 revenue rose 16% to $411M; ARR grew 11% to $1.782B, with net new ARR at $59M.
  • Profitability Milestone:: First GAAP profitable quarter with $13M operating income; non-GAAP operating income reached $88M (21% margin).
  • Customer Engagement & Pipeline:: 107% dollar-based net retention rate, 950+ companies developing agents, and 365,000 processes orchestrated via Maestro.
  • FX Headwinds:: Q4 guidance faces $3M revenue impact from yen depreciation, projecting $462–467M revenue and $1.844–1.849B ARR.
  • Strategic Partnerships & Innovation:: Expanded integrations with OpenAI, Microsoft, NVIDIA, and Deloitte, driving agentic AI adoption and production deployment growth.

Operational Highlights

The company continues to strengthen partnerships, including expansions with Deloitte and new integrations with Microsoft, OpenAI, NVIDIA, Google, and Snowflake. AgenTi solutions have seen traction, with over 950 clients, and the company is seeing movement from pilots to production, with customers finding tangible ROIs through the full breadth of the platform. The federal business has pockets of strength, with long-term and strategic projects.

Guidance and Outlook

For the fourth fiscal quarter 2026, revenue is expected to be $462 million to $467 million, reflecting a $3 million headwind from FX rate movements. ARR is expected to be $1.844 billion to $1.849 billion, also with a $3 million headwind from FX rate movements. Non-GAAP operating income is expected to be approximately $140 million. The company continues to expect fiscal year 2026 non-GAAP adjusted free cash flow of approximately $370 million and non-GAAP gross margin of approximately 85%.

Valuation and Growth Prospects

With a P/S Ratio of 5.08 and an expected revenue growth rate of 10% next year, UiPath's valuation appears reasonable. The company's ROE of 12.88% and ROIC of 1.75% indicate a strong ability to generate returns for shareholders. Analysts expect the company to continue its growth momentum, driven by its agentic framework and partnerships. The stock's current valuation multiples, including a P/E Ratio of 34.87 and an EV/EBITDA of 278.31, suggest that the market is pricing in a strong growth outlook.

Key Drivers and Challenges

The company has doubled the number of customers developing agents quarter over quarter and has seen an uplift in these customers. It expects this revenue to ramp up and help sustain its net retention rate (NRR) and offset weakness at the low end. However, the Japanese yen's depreciation against the U.S. dollar has created a headwind to fourth-quarter guidance, and the company faces challenges in terms of customer hurdles with agentic consumption pricing.

3. NewsRoom

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Why UiPath Stock Surged Today

Dec -04

Source: fool.com

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Biggest Market Movers Today, Dec. 4: PATH, SNOW, & More

Dec -04

Source: fool.com

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Dow Jones Today: Major Stock Indexes Little Changed; Weekly Jobless Claims Unexpectedly Fall; Inflation Data on Tap Tomorrow

Dec -04

Source: investopedia.com

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UiPath Earnings Show Accelerating Growth

Dec -04

Source: youtube.com

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PATH's Best Day in 2 Years, Earnings Show Lean Into Agentic A.I. & Automation

Dec -04

Source: youtube.com

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Stocks to Watch as the AI-Driven Robotics Productivity Push Accelerates

Dec -04

Source: zacks.com

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UiPath Expands Influence in the Global Automation Ecosystem

Dec -04

Source: zacks.com

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UiPath Skyrockets Over 20% as AI Bets Spark Investor Frenzy

Dec -04

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (37.61%)

6. Segments

Subscription Services

Expected Growth: 39.42%

UiPath's Subscription Services growth is driven by increasing adoption of automation in industries, expansion into new markets, and growing demand for digital transformation. The company's strong brand recognition, innovative products, and strategic partnerships also contribute to its growth. Additionally, the shift towards cloud-based solutions and the need for cost savings and efficiency in a post-pandemic economy further fuel the segment's growth.

Licenses

Expected Growth: 36.4%

UiPath's licenses growth is driven by increasing adoption of automation technologies, growing demand for digital transformation, and expanding partner ecosystem. The company's innovative products, such as Automation Cloud and AI-powered automation, are also contributing to its growth. Additionally, UiPath's strategic acquisitions and investments in emerging markets are further fueling its expansion.

Professional Service and Other

Expected Growth: 26.26%

UiPath's Professional Service and Other segment growth of 26.26% is driven by increasing adoption of automation solutions, expansion of existing customer relationships, and growing demand for implementation and support services. Additionally, the company's strategic partnerships and investments in emerging technologies such as AI and cloud computing are contributing to the segment's growth.

7. Detailed Products

UiPath Studio

A visual workflow designer that enables users to automate repetitive tasks and create complex business processes

UiPath Robot

A software robot that executes automated workflows and interacts with applications and systems

UiPath Orchestrator

A centralized management platform for automating and monitoring business processes

UiPath Document Understanding

An AI-powered document processing solution that extracts data from unstructured documents

UiPath Automation Cloud

A cloud-based automation platform that enables users to automate business processes

UiPath AI Fabric

An AI-powered automation platform that enables users to automate complex business processes

UiPath Test Automation

A test automation solution that enables users to automate testing of applications and systems

8. UiPath Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

UiPath's automation software is highly specialized and has a high switching cost, making it difficult for customers to switch to alternative products.

Bargaining Power Of Customers

While UiPath's customers have some bargaining power due to the availability of alternative automation solutions, the company's strong brand reputation and high-quality products mitigate this power.

Bargaining Power Of Suppliers

UiPath has a diverse supplier base, and the company's strong financial position gives it significant bargaining power over its suppliers.

Threat Of New Entrants

While there are some barriers to entry in the automation software market, new entrants can still disrupt the market with innovative products and services, posing a moderate threat to UiPath.

Intensity Of Rivalry

The automation software market is highly competitive, with several established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.22%
Debt Cost 3.95%
Equity Weight 96.78%
Equity Cost 8.97%
WACC 8.81%
Leverage 3.33%

11. Quality Control: UiPath Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AvidXchange

A-Score: 4.9/10

Value: 3.6

Growth: 6.4

Quality: 5.5

Yield: 0.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Altair Engineering

A-Score: 4.5/10

Value: 2.0

Growth: 6.7

Quality: 5.3

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Shift4 Payments

A-Score: 4.2/10

Value: 3.4

Growth: 9.4

Quality: 5.4

Yield: 0.0

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Informatica

A-Score: 4.1/10

Value: 4.1

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
UiPath

A-Score: 3.9/10

Value: 3.4

Growth: 7.2

Quality: 4.8

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
SentinelOne

A-Score: 3.4/10

Value: 4.6

Growth: 6.7

Quality: 4.2

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.48$

Current Price

18.48$

Potential

-0.00%

Expected Cash-Flows