UiPath reported fiscal 2026 fourth‑quarter revenue of $481.11 million, up 13.6% year‑over‑year and exceeding the consensus estimate of roughly $464.8 million. Adjusted earnings per share rose to $0.30, beating the $0.26 forecast by $0.04 and marking a fourth straight quarter of earnings beats. The company’s annual recurring revenue reached $1.853 billion, an 11% increase from the prior year, while net new ARR of $70 million reflected a modest decline from the $86 million recorded in the fourth quarter of fiscal 2025, indicating a slowing but still positive growth trajectory.
On a GAAP basis, UiPath’s operating margin expanded to 17% for the quarter, while the non‑GAAP operating margin was 31.2%, reflecting the company’s higher‑margin AI‑enabled contracts and improved operational leverage. Free cash flow grew to $179 million, a 37% margin, underscoring disciplined cash generation even as the firm invests heavily in its next‑generation automation stack.
Management maintained its full‑year 2027 revenue guidance at $1.754 billion to $1.759 billion and projected annual recurring revenue to exceed $2.051 billion. For the first quarter of fiscal 2027, the company guided revenue of $395 million to $400 million, a figure below some analyst expectations but consistent with its view of a decelerating growth environment. The guidance signals confidence in maintaining profitability while navigating a competitive and macro‑challenged landscape.
The results highlight the strategic importance of UiPath’s agentic AI platform, which is still in early adoption but is expected to drive future growth. The company’s recent acquisition of WorkFusion is positioned to strengthen its presence in financial services automation. The modest decline in net new ARR, while a headwind, is partially offset by a $14 million foreign‑exchange tailwind and continued demand for AI‑driven offerings, which now account for roughly $200 million of ARR.
Analysts noted the earnings beat and margin expansion as evidence of strong execution, but also cautioned that the slowing revenue growth and the lower Q1 guidance reflect a more cautious outlook. The mixed market reaction—some investors welcomed the profitability milestone, while others remained wary of the decelerating growth trajectory—underscored the nuanced view of UiPath’s near‑term prospects.
Overall, UiPath’s fourth‑quarter performance demonstrates disciplined cost management and a solid foundation for its AI strategy, while the company’s guidance indicates a measured approach to growth in a challenging macro environment. The firm’s ability to achieve full‑year GAAP profitability for the first time marks a significant milestone, positioning it for continued focus on high‑margin AI and automation solutions.
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