UiPath Beats Revenue Estimates, Posts Fourth Straight Profitable Quarter — Stock Still Falls

UiPath reported second-quarter fiscal 2027 results on September 3, 2026, with revenue of $410.26 million, above the $397.77 million Wall Street forecast. Adjusted EPS matched expectations at $0.15.

Continued Profitability Improvement

• Annual recurring revenue rose 12% year-over-year to $1.938 billion
• The company posted its fourth consecutive quarter of GAAP profitability
• Full fiscal year non-GAAP operating income is projected at approximately $445 million, implying roughly a 25% margin at the midpoint

Why the Stock Fell Despite the Beat

Despite beating revenue expectations, shares fell sharply in after-hours trading — reported declines ranged from roughly 10% to over 16% depending on the source — suggesting investors were looking beyond the reported quarter and focusing on UiPath's forward growth trajectory and the pace of its AI monetization, even as operational metrics showed broad-based improvement.

Guidance

For fiscal Q3, UiPath guided revenue to $440-445 million and ARR to $1.992-1.997 billion. Full fiscal year 2027 guidance calls for revenue of $1.789-1.794 billion and ARR of $2.065-2.070 billion, positioning the company to cross the $2 billion ARR milestone during the fiscal year.

What This Means for Automation Platform Buyers

UiPath's fourth consecutive quarter of GAAP profitability alongside continued double-digit ARR growth is a meaningfully different financial profile than many enterprise software vendors still operating at a GAAP loss, and this fundamental progress is worth weighing independently of the stock's short-term reaction, which reflects market expectations about future AI-driven growth rather than the current quarter's underlying execution.