UiPath
Enterprise SaaS + hybrid/self-hosted subscription licensing, land-and-expand, ARR-driven; ~85% blended (software ~90%) gross margin, sold direct and via GSI/channel partners
Earnings, margins, COGS & capex
Rule-of-~30 profile flipped toward profitability over growth: FY2026 revenue $1.611B (+13%), ARR $1.853B (+11%), first-ever full-year GAAP profit ($57M GAAP op income, $282M GAAP net income), $370M non-GAAP op income. Q1 FY2027 accelerated to +17% revenue with the first GAAP-profitable Q1 ($28M GAAP op income). Growth has decelerated from the 40%+ IPO-era pace to low-double-digits as core RPA matures; the bet is that agentic automation re-accelerates net-new ARR.
Income statement — where each revenue dollar goes
% of revenueOf every $1 of revenue, ~0¢ is cost of goods and ~96¢ operating expense, leaving ~4¢ of operating profit (~109¢ net).
Revenue trend
Margins
stable
stable
expanding
improving (first full-year and first-Q GAAP profit)
soft; below the 120%+ of prior years
COGS structure
COGS is dominated by third-party cloud hosting for UiPath Cloud, customer support, and services delivery. Software/subscription COGS is small (software GM ~90%); blended GM held down by lower-margin professional services and cloud-hosting scale-up.
Capex
Minimal; no owned data centers or fabs. Primary cash uses are R&D, S&M, tuck-in M&A (e.g. Peak) and share buybacks (new $500M authorization in 2026-03, incremental to prior repurchases).
Latest earnings
Beat on revenue and profitability. First GAAP-profitable Q1 in company history; non-GAAP EPS $0.15 (+36% y/y).
FY2027: revenue $1.776-1.781B, ARR $2.058-2.063B, non-GAAP operating income ~$430M. Q2 FY2027: revenue $395-400M, ARR $1.929-1.934B, non-GAAP operating income ~$75M.
- Revenue
- $418M (+17% y/y)
- ARR
- $1.901B (+12% y/y)
- Net new ARR
- $49M
- GAAP operating income
- $28M
- Non-GAAP operating income
- $92M (22% margin)
- Non-GAAP adjusted FCF
- $130M
- Dollar-based net retention
- 109%
- Customers >$100k ARR
- 2,620 (+11% y/y)
- Customers >$1M ARR
- 374 (+18% y/y)
Growth drivers
- Agentic automation — AI agents built/orchestrated with robots and humans; Q1 FY2027 had 16 of top-20 deals include AI and AI expansions ~6x larger than non-AI
- Maestro cross-ecosystem agent orchestration (coordinating agents from Microsoft, Google, OpenAI, NVIDIA, Snowflake alongside UiPath robots)
- Land-and-expand into the installed base of $100k+ ARR customers (2,620, +11% y/y) and $1M+ ARR customers (374, +18% y/y)
- Document understanding / IDP and industry-specific automations
- Public sector and regulated-industry deployments (FedRAMP, self-hosted)
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-03-25. The audited primary-source spine — not financial advice.
Revenue — annual (GAAP)
Margins & balance sheet — FY’26
Bull & bear
A profitable, cash-rich category leader trading at a low-single-digit revenue multiple that successfully re-platforms to agentic automation and re-accelerates net-new ARR, with AI expansions already running ~6x larger than non-AI deals.
- Cheap on fundamentals: ~$6.1B cap less ~$1.42B net cash = ~$4.65B EV on ~$1.78B FY2027 revenue and ~$2.06B ARR (~2.3-2.6x sales/ARR) for an 85%-GM, FCF-positive leader
- AI is already the decisive deal driver (16 of top-20 Q1 deals; ~6x larger expansions) - evidence the agentic pivot is landing, not just marketing
- First GAAP-profitable year and quarter plus ~23% non-GAAP margins show a durable, self-funding model, de-risking the equity
- Maestro's vendor-neutral orchestration of Microsoft/Google/OpenAI/NVIDIA/Snowflake agents is a credible 'control tower' position competitors bundling their own agents can't easily claim
- $500M buyback plus ~$1.4B net cash gives capital-return and downside support at a depressed multiple, amplified by high short interest (squeeze potential)
Legacy RPA is the wrong asset for the AI-agent era: growth has already halved to low-double-digits, retention is eroding, and Microsoft plus horizontal agent platforms can bundle away UiPath's value while LLMs commoditize the core.
- Deceleration is structural, not cyclical: +13% FY2026 and ~+10% FY2027 guide with NRR down to ~109% and net new ARR of only $49M in Q1 signal a maturing core and expansion running out
- Screen-scraping RPA is the most exposed automation layer to LLM agents that can act directly via APIs/computer-use, threatening seat/robot economics
- Microsoft (Power Automate/Copilot Studio) and Salesforce/ServiceNow can give 'good-enough' agentic automation inside suites customers already pay for
- Multiple has already de-rated (52-wk high $19.84 vs ~$11.71); the market is pricing skepticism, reflected in unusually high short interest (~32% of float)
- Heavy stock-based comp and dual-class governance; GAAP profitability is thin (~4% FY2026 op margin) once SBC is counted, and buybacks partly offset dilution rather than shrink the float meaningfully
What it is worth
EV/Sales and EV/ARR cross-check against low-double-digit growth, ~85% gross margin, ~23% non-GAAP operating margin, ~$1.4B net cash. EV ~= $6.1B cap - ~$1.42B net cash ~= ~$4.65B on ~$1.78B FY2027 revenue (~2.6x EV/S) and ~$2.06B ARR (~2.3x EV/ARR).
~$8-9/sh (~$4-5B cap
near 52-wk low): Microsoft/suite bundling and LLM commoditization drive growth toward mid-single-digits and NRR below 105%; multiple compresses to ~1.5-2x EV/S, with net cash providing a floor.
~$12-14/sh (~$6-7B cap)
~10-13% growth persists, ~23% non-GAAP margins, ~2.5-3x sales - roughly the current range.
~$18-20/sh (~$9-10B cap)
agentic re-accelerates ARR to mid-teens, NRR recovers toward 115%+, multiple re-rates to ~4-5x sales as growth+FCF story is re-underwritten.
Trades at a discount to profitable-SaaS norms, reflecting decelerating growth, retention erosion, and AI-transition risk. Re-rating hinges on net-new-ARR re-acceleration from agentic monetization; the balance sheet and buyback cushion downside. Not financial advice.
SWOT
Strengths
- Category leader — #1 in Gartner RPA Magic Quadrant six consecutive years; large installed base and brand in enterprise automation
- ~$1.9B ARR with ~90% software gross margins and now GAAP-profitable with ~23% non-GAAP operating margin
- Fortress balance sheet — ~$1.4B cash and no debt, generating real FCF (~$372M non-GAAP adjusted FCF FY2026), funding buybacks
- End-to-end platform (discovery, RPA, IDP, test, orchestration) with growing agentic layer (Maestro, Agent Builder)
Weaknesses
- Growth decelerated to low-double-digits; net retention slipped to ~109% from 120%+ historically
- Core RPA is a maturing/at-risk category as LLM agents can automate tasks without brittle screen-scraping bots
- Founder/dual-class control and heavy historical stock-based compensation dilution
- Execution wobble — prior guidance cuts and a 2024 CEO transition (Daniel Dines returned as CEO) dented credibility
Opportunities
- Re-platform automation around agentic AI and become the neutral orchestration layer across all vendors' agents
- Attach AI to the large installed base at ~6x larger expansion deal sizes
- Regulated/on-prem and public-sector demand where self-hosted, governed automation is required
- Consolidation of point tools (test automation, IDP, process mining) into one platform
Threats
- Microsoft bundling agentic automation into Power Platform/Copilot Studio/Dynamics at aggressive pricing
- Horizontal AI-agent platforms (Salesforce Agentforce, ServiceNow, Google, OpenAI) encroaching from adjacent seats
- Commoditization: LLMs make basic automation cheaper, compressing seat/robot pricing
- Near-term sentiment risk — unusually high short interest (~32% of float, ~126M shares short as of mid-June 2026), with routine FINRA short-interest data due ~2026-07-10; the stock has recently squeezed ~11% off its lows
Moats, dependencies & bottlenecks
Moats
Thousands of production automations and governance tied to UiPath Orchestrator create stickiness, but agent-native rebuilds can reset the decision.
Six-year Gartner RPA MQ leader; strong enterprise mindshare, though the category itself is being redefined.
End-to-end discovery-to-orchestration suite plus Maestro cross-vendor orchestration is hard to replicate for pure-plays.
Runs on third-party hyperscaler infra; no structural cost moat versus Microsoft's owned cloud.
Dependencies
Supplier / infrastructure UiPath Cloud is hosted on third-party clouds - one of which (Microsoft) is also a direct competitor.
Anthropic, Google, NVIDIA compute) Technology / supplier Agentic features depend on external LLMs; model economics and access shape UiPath's margins and roadmap.
Large deployments are GSI-led; partner mindshare shifting to competing agent platforms is a risk.
Discretionary transformation spend is macro-sensitive and now competes with in-house/LLM 'build' options.
Advantages
- Largest independent, vendor-neutral automation platform — can orchestrate rivals' agents rather than force one stack
- Profitable and cash-rich, so it can invest through the transition without dilutive raises
- Deep governance, security and on-prem/self-hosted options that regulated buyers require
- Existing enterprise relationships and process data (discovery/mining) to seed agent deployments
Weaknesses
- Growth and net retention decelerating; core RPA maturing
- Structurally exposed to LLM-driven commoditization of basic automation
- No infrastructure/cost moat versus hyperscaler competitors
- Thin GAAP margins once stock-based comp is included; ongoing dilution
Bottlenecks
- Net-new ARR generation — the single most-watched constraint on the equity (only $49M net new ARR in Q1 FY2027); needs AI to re-accelerate expansion
- Convincing customers that agentic value is incremental to, not cannibalized by, existing RPA seats
- Competing on price/bundling against Microsoft without eroding the ~90% software margin
- Sales-motion retooling from bot-count licensing to consumption/agent-based pricing
Top signals & trends
Top signals
Direct evidence the agentic pivot is monetizing.
Expansion engine cooling; key metric to watch for re-acceleration.
Model durability and self-funding capability improving.
Capital return and downside support at a depressed multiple.
Elevated skepticism on the AI transition, though heavy shorting cuts both ways (squeeze risk on positive surprises).
Trends
Existential re-platforming: the opportunity that could re-accelerate growth is also the threat that could commoditize the core.
Pricing and distribution pressure on independent platforms.
Favors a neutral 'control tower' like Maestro.
Low-double-digit growers de-rated; PATH trades near lows.
Cheaper inference helps feature economics but also lowers rivals' barrier to entry.
Ecosystem & competitor graph
Suppliers feed the company; customers pull from it. Line thickness shows the strength of each tie (supply-chain dependency, customer earnings contribution). Hover to isolate a tie.
Cloud hosting for UiPath Cloud.
Cloud infrastructure supplier and simultaneously a direct competitor.
AI compute/accelerators underpinning agentic workloads; ecosystem partner.
Private foundation-model providers powering agentic features.
LLM/infra provider and orchestration partner.
insurance, healthcare, telecom, public sector) 2,620 customers at >$100k ARR and 374 at >$1M ARR; concentration in large regulated enterprises and BPOs. No single customer material to revenue.
Cognizant, Accenture Operations) BPOs deploy UiPath at scale to automate client back-office work.
Bundles agentic automation into the Power Platform and Copilot; also a hosting partner. Leader in Gartner RPA MQ but the most dangerous distribution threat.
Private; #2 pure-play in Gartner RPA MQ, direct RPA/agentic rival competing head-to-head for the same enterprise seats.
Horizontal AI-agent platform encroaching from the CRM seat with aggressive agentic positioning.
Workflow/ITSM platform adding AI agents; overlaps in enterprise process automation.
Low-code process automation + RPA and AI agents; competes in process orchestration.
BPM/decisioning with RPA and agentic AI; overlaps in complex enterprise workflow automation.
Blue Prism RPA under SS&C; legacy RPA competitor to UiPath's core.
Foundation-model-led agent platforms as an emerging horizontal alternative; also a partner in Maestro orchestration.