UiPath Earnings: Buyback and Mixed Guidance

UiPath Inc. (PATH) reported revenue growth and its first full-year GAAP profit in its Mar. 11, 2026 earnings release, but FY2027 guidance and investor concerns about AI tempered enthusiasm for PATH stock.

Quarter Results and Profitability

UiPath said in a press release on Mar. 11, 2026 that fourth-quarter fiscal 2026 revenue reached $481 million, up 14.0% year-over-year and above the $465 million estimate. Annual recurring revenue (ARR) rose 11.0% year-over-year to $1.853 billion at quarter end, with $70 million in net new ARR and dollar-based net retention of 107.0%.

The company reported fourth-quarter GAAP operating income of $80 million, a 17.0% margin, and non-GAAP operating income of $150 million, a 31.0% margin. For the full fiscal year, revenue grew 13.0% to $1.611 billion. UiPath posted GAAP operating income of $57 million, a 4.0% margin, marking its first positive full-year GAAP operating income, and non-GAAP operating income of $370 million, a 23.0% margin.

Net income for the year was $282 million, or $0.52 per share basic. Cash and equivalents totaled $1.69 billion as of Jan. 31, 2026. UiPath’s earnings slides highlighted customer growth, with 2,565 customers generating more than $100,000 in ARR, up 12.0% year-over-year, and 357 customers exceeding $1.0 million in ARR, up 13.0%.

Buyback, Guidance, and AI Impact

The company authorized a new $500 million share-repurchase program after completing a prior $1.0 billion program. It provided FY2027 guidance implying slower revenue growth: first-quarter revenue of $395 million to $400 million, ARR of $1.894 billion to $1.899 billion as of Apr. 30, 2026, and non-GAAP operating income near $80 million.

For the full fiscal year, UiPath forecast revenue between $1.754 billion and $1.759 billion, ARR of $2.051 billion to $2.056 billion as of Jan. 31, 2027, non-GAAP operating income around $415 million, adjusted free cash flow near $425 million, and a non-GAAP gross margin of about 84.0%. First-half revenue is expected near $795 million with net new ARR of approximately $73 million.

Earnings slides showed cloud ARR growth exceeding 20.0% year-over-year and attributed $200 million of ARR to AI products. Management raised its long-term non-GAAP operating-margin target to 30.0% from 23.0%, signaling a focus on margin expansion alongside measured revenue pacing. Daniel Dines, founder and chief executive, said, "As enterprise AI adoption moves from experimentation to scaled deployment, customers increasingly need a platform that can execute complex processes with reliability, governance, and scale."

Investors responded to the combination of capital returns, margin ambitions, and cautious guidance with a roughly 6% decline in PATH stock during morning trading on Mar. 12, 2026, reflecting concerns about the AI transition. UiPath’s strategy balances returning capital and expanding margins while pacing top-line growth into FY2027.