UiPath (PATH) Stock|: Falls Pre-Market Despite 13% Revenue Growth Q2 and Strong ARR Gains

TLDR

Table of Contents

UiPath revenue climbs 13% as ARR nears $2 billion in fiscal Q2 2027 results.
PATH stock sinks 8.63% pre-market despite stronger quarterly revenue growth.
UiPath posts $410 million revenue as ARR rises 12% year over year in fiscal Q2.
UiPath targets up to $1.794 billion in revenue for the full fiscal year 2027.
Leadership changes and new automation products support UiPath’s growth plans.

UiPath (PATH) reported stronger second-quarter results as revenue climbed 13% and annual recurring revenue increased 12% year over year. However, PATH stock dropped 8.63% to $16.67 in pre-market trading after closing 1.28% higher at $18.22. The results showed continued business growth, but the market response placed pressure on shares before Friday’s opening bell.

UiPath Inc., PATH

UiPath Revenue Climbs 13% as ARR Approaches $2 Billion

UiPath generated $410 million in second-quarter fiscal 2027 revenue, representing a 13% increase from the previous year. Meanwhile, annual recurring revenue reached $1.938 billion by July 31, marking 12% year-over-year growth. The company also added $37 million in net new annual recurring revenue during the quarter.

UiPath recorded a dollar-based net retention rate of 109%, showing continued spending across its existing customer base. GAAP gross margin reached 80%, while the adjusted gross margin stood at 82% during the reporting period. These margins showed that UiPath maintained strong profitability levels while expanding its automation platform.

The company also reported $32 million in GAAP operating income during the second quarter. Adjusted operating income reached $89 million, while operating cash flow totaled $31 million. UiPath ended July with $1.405 billion in cash, equivalents, and marketable securities.

UiPath Raises Focus on Growth Through New Leadership Structure

UiPath also changed several senior leadership positions as the company prepares for its next stage of expansion. Ashim Gupta will now concentrate entirely on his responsibilities as chief operating officer. His role will focus on sales execution, demand generation, and customer delivery.

UiPath promoted Hitesh Ramani to chief financial officer after several years within the company’s finance organization. Ramani previously served as deputy chief financial officer and chief accounting officer since 2021. The company also appointed Brad Brubaker as chief legal and administrative officer.

UiPath expanded its board by appointing Yazdi Bagli, an enterprise technology executive from Kaiser Permanente. The company expects the leadership changes to improve accountability across finance, operations, legal functions, and workforce management. These changes come as UiPath works to strengthen execution while expanding its business automation offerings.

UiPath Issues Strong Fiscal 2027 Revenue and ARR Outlook

For the third quarter, UiPath expects revenue between $440 million and $445 million. The company also projects annual recurring revenue between $1.992 billion and $1.997 billion by October 31. Adjusted operating income should reach approximately $100 million during the quarter.

For fiscal 2027, management expects revenue between $1.789 billion and $1.794 billion. UiPath also forecasts annual recurring revenue between $2.065 billion and $2.070 billion by January 31, 2027. Adjusted operating income should reach approximately $445 million for the full fiscal year.

UiPath has also expanded its product lineup to support more complex enterprise automation processes. The company recently introduced Maestro Case for workflows involving investigations, approvals, exceptions, and multiple business systems. It also launched Maestro Flow, which helps developers design, operate, monitor, and manage automated processes from development through production.

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