UiPath’s earnings report for last quarter was a good one. The company managed to beat the revenue and profit targets and gave better guidance than the market’s expectations. But the road ahead is still complicated, in a technological environment where artificial intelligence is shaping investors’ expectations but also their fears for the growth of the sector, writes eToro analyst for Romania, Bogdan Maioreanu.
UiPath is a company started in a Bucharest apartment that grew to become the first Romanian-born “unicorn” (a startup worth over $1 billion) on the New York Stock Exchange. It is popular with Romanian investors, at the end of 2025, being the seventh most held stock by those on the social investing platform eToro. But its popularity is declining – at the end of 2024, it was the fifth, and in mid-2023, it was the third most held stock by Romanian investors on eToro. From a high of almost $90 reached shortly after the IPO, the company’s stock price decreased to a minimum of around $10 this year. So the company has a lot to do to regain investors’ trust.
In its latest earnings report, UiPath delivered strong results, beating market expectations. Quarterly revenues reached $481 Million, a 14% year on year increase, with total revenue for the full fiscal year of $1.61 Billion and earnings per share of $0.3. The company managed to reach full-year GAAP profitability for the first time in its history, an important milestone. In terms of Annualized Renewal Run-Rate (ARR), a key metric that measures the ability of the company to acquire new subscription customers and its ability to keep the current ones, the company posted $1.85 Billion, an 11% year on year increase. Guidance was also positive with UiPath forecasting revenue for the first quarter of its current fiscal year in the range of $395-400 million, and full fiscal year revenue in the range of $1.754 – 1.759 billion. ARR is also forecasted to grow to over $2 Billion.
The road ahead is not simple, though. AI is currently shaping the expectations and fears regarding growth, especially in the software field of the technology sector. According to the consulting company Gartner, UiPath in the field of RPA (Robotic Process Automation) is in the leaders quadrant. But the company is not alone there. Another very powerful leader with deep pockets is Microsoft. While both companies are on the path of AI integration, their models are quite different. While Microsoft RPA solution excels at integrating across the company’s portfolio of applications and systems, UiPath provides development studios tailored to different systems and needs.
AI, and especially agentic integration, is becoming very important for UiPath. The company reported strong momentum in AI integration within their platform, highlighting a $200 million ARR contribution from AI-related products. The company ended the quarter with approximately 10,750 customers. Among customers with more than $1 million in ARR, they mentioned that 90% are using AI products; among customers with more than $100,000 in ARR, approximately 60% are using UiPath AI products, and across their broader base, 42% of customers with over $30,000 in ARR use AI products from UiPath. This shows strong adoption among high-tier clients but also leaves room for expansion in its broader client base.
In February this year, UiPath acquired WorkFusion, a company with offerings of AI agents for financial crime compliance. While the integration is on its way, this acquisition will have a limited immediate impact on UiPath’s growth. But in the longer term, this move could make UiPath’s platform harder to replace for large financial institutions, as it has compliance-focused AI agents, creating a larger moat for the company.
The next period looks to be complicated, with the adoption of AI and agentic solutions still in the early stages, which may delay the realization of UiPath’s full revenue potential. While UiPath remains a leader in RPA, AI agentic development outside this sector can create competition for UiPath solutions. It can also trigger unexpected financial market moves, as we have seen in the past month. Last night, UiPath announced a new $500 million stock repurchase authorization following the completion of its previous $1 billion stock repurchase program. This signals the management’s trust in the business. It is to be seen if investors will manifest the same trust.
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