UiPath’s shares fell 15.6% after earnings, indicating investors were disappointed by the still-moderate 12% ARR growth and concerns that the company’s growth reacceleration remains insufficient despite solid profitability and management’s claims of beating guidance. The quarter showed improving margins and AI adoption, but the market appears focused on the pace and durability of top-line expansion.
- ARR reached $1.938 billion, up 12% year over year, including $37 million of net new ARR; revenue was $410 million, up 13%.
- Non-GAAP operating income was $89 million, a 22% margin, expanding more than 400 basis points year over year; the company also reported its fourth consecutive quarter of GAAP profitability.
- AI was present in 18 of the 20 largest deals, with customers expanding from individual automation use cases toward broader end-to-end workflows involving agents, robots, and orchestration.
- Management cited larger AI-attached expansions, including a seven-figure expansion with a global insurance provider.
- Ashim Gupta will become COO and Hitesh Ramani will succeed him as CFO, with management characterizing the transition as planned and providing continuity.
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