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UiPath, Inc. (PATH)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 delivered a clean top- and bottom-line beat against S&P Global consensus, with revenue $356.6M vs $332.3M estimate and non-GAAP diluted EPS $0.11 vs $0.10 estimate; ARR rose 12% YoY to $1.693B, though net new ARR slowed to $27M and DBNRR ticked down to 108% . Revenue/EPS estimates from S&P Global marked with asterisks below.*
  • Management raised full-year FY26 guidance (revenue to $1.549–$1.554B from $1.525–$1.530B; non-GAAP operating income to ~$305M from ~$270M), while setting Q2 revenue at $345–$350M (near consensus), framing FY26 as a foundational year for agentic monetization ramp in FY27 .
  • Product catalysts: broad launch of the agentic automation platform (Maestro orchestration, Agent Builder, IXP) and new bi-directional integration with Microsoft Copilot Studio; early customer traction includes multi-year, multi-million agentic expansion and competitive displacements .
  • Watch-outs: license revenue declined YoY, gross margin compressed vs both prior year and prior quarter, and “other (expense) income” turned negative; public sector remains in transition with cautious guide despite some wins (e.g., U.S. Air Force) .

What Went Well and What Went Wrong

  • What Went Well
    • Beat-and-raise quarter with ARR +12% YoY to $1.693B and non-GAAP operating margin expanding 500 bps YoY to 20%, supported by execution and cost discipline . “This was a milestone quarter…launch of our agentic automation platform…we remain confident in our strategy” – Daniel Dines, CEO .
    • Agentic platform momentum: Maestro and Agent Builder driving early adoption; Fortune 15 healthcare expansion (multi-year, multi-million), retail and industrial examples, and competitive wins/displacements .
    • Strengthened FY26 outlook and strong cash generation: Q1 cash from operations $119M; FY26 non-GAAP adjusted FCF guidance ~$370M reaffirmed; share repurchases of 21.9M shares at ~$10.40 average .
  • What Went Wrong
    • Growth quality mixed: net new ARR slowed to $27M (from $60M in Q4) and DBNRR eased to 108% (from 110% in Q4), reflecting macro variability and federal transition .
    • License revenue down YoY ($128.3M vs $140.1M), and GAAP/Non-GAAP gross margins stepped down vs prior year/quarter (GAAP 82%; non-GAAP 84%) .
    • “Other (expense) income, net” was -$16.0M (vs +$10.7M prior year), weighing on GAAP results; management reiterated that agentic revenue contribution will be immaterial in FY26, deferring monetization to FY27+ .

Financial Results

MetricQ3 FY25Q4 FY25Q1 FY26
Revenue ($M)$355.0 $423.6 $356.6
GAAP Gross Margin (%)85% 85% 82%
Non-GAAP Gross Margin (%)85% 87% 84%
GAAP Operating Margin (%)(12)% 8% (5)%
Non-GAAP Operating Margin (%)14% 32% 20%
GAAP Diluted EPS ($)N/A$0.09 $(0.04)
Non-GAAP Diluted EPS ($)N/A$0.26 $0.11

Segment revenue mix (YoY):

Revenue Component ($000s)Q1 FY25 (YoY base)Q1 FY26
Licenses$140,128 $128,286
Subscription services$185,131 $217,303
Professional services & other$9,853 $11,035
Total Revenue$335,112 $356,624

Key KPIs and balance sheet:

KPI / Balance MetricQ3 FY25Q4 FY25Q1 FY26
ARR ($B)$1.607 $1.666 $1.693
Net New ARR ($M)$56 $60 $27
Dollar-based Net Retention (%)113% 110% 108%
Gross Retention (%)97% 98% 97%
Customers (~)~10,790 ~10,750 ~10,750
Customers ≥$100K ARR2,235 2,292 2,365
Customers ≥$1M ARR302 317 316
RPO ($B)$1.128 $1.243 $1.231
Cash, Equivalents & Marketable Secs ($B)$1.6 $1.7 $1.59

Estimate comparisons (S&P Global consensus):

MetricPeriodConsensusActual
Revenue ($M)Q1 FY26$332.3*$356.6
Primary EPS (non-GAAP)Q1 FY26$0.10*$0.11
  • S&P Global consensus used for estimates. Values marked with an asterisk are from S&P Global and provided without document citations.*

Guidance Changes

MetricPeriodPrevious Guidance (3/12/25)Current Guidance (5/29/25)Change
Revenue ($B)FY26$1.525–$1.530 $1.549–$1.554 Raised
ARR ($B, period-end)FY26 (Jan 31, 2026)$1.816–$1.821 $1.820–$1.825 Slightly raised
Non-GAAP Operating Income ($M)FY26~$270 ~$305 Raised
Non-GAAP Adjusted FCF ($M)FY26~$370 ~$370 Maintained
Non-GAAP Gross Margin (%)FY26~85% ~85% Maintained
Revenue ($M)Q2 FY26N/A$345–$350 New quarterly guide
ARR ($B, period-end)Q2 FY26 (Jul 31, 2025)N/A$1.715–$1.720 New quarterly guide
Non-GAAP Op Inc ($M)Q2 FY26N/A~$40 New quarterly guide
Basic Shares (M)Q2 FY26N/A~537 New modeling item

Forward-looking non-GAAP reconciliations not provided due to variability in excluded items .

Earnings Call Themes & Trends

TopicQ3 FY25 (Dec-24 call)Q4 FY25 (Mar-25 call)Q1 FY26 (May-25 call)Trend
AI/Agentic initiativesAnnounced agentic roadmap; private preview enthusiasm, >1,000 orgs registered Peak AI tuck-in for vertical agents; public preview timing; agentic testing momentum Platform launch; Maestro/Agent Builder adoption; consumption-based pricing; integration with Copilot Studio, LangChain Broadening scope; from previews to GA with early wins
Public sectorN/ATransition and procurement moratoriums create near-term uncertainty; still strategic Encouraging signs (USAF “Agentic Airmen” win), but still cautious; renewals OK; variable new budgets Gradual stabilization, cautious stance
Macro/FXStable demand environment commentary Heightened macro volatility in early March; added prudence to FY26 Macro variable; FX immaterial for guide Variable but manageable
Product performanceIDP, test suite traction; SAP SolEx integration support Attach rates high in large customers; cloud ARR >$975M (+50% YoY) Early agentic deal wins; Maestro orchestration differentiation Expanding multi-product adoption
Regional/verticalVWFS, European health insurance agency wins Healthcare, financials, select geos mentioned as relative strengths Healthcare agent use cases; federal momentum Vertical solutions building (healthcare, ERP)
Go-to-marketStreamlining, partner enablement; restructuring benefits to margins Substantially complete; focus on field investments Structure stable; reinvest selectively; partner program traction Stabilized GTM with targeted reinvestment

Management Commentary

  • “This was a milestone quarter…marked by the launch of our agentic automation platform…We’re encouraged by the early response…As we continue to bring this next generation of capabilities to market, we remain confident in our strategy, our differentiation, and the opportunity ahead.” – Daniel Dines, CEO .
  • “We delivered a strong start to the year, with first quarter results exceeding our guidance on both the top and bottom line…As we look to the remainder of the year, we remain focused on executing our strategy, investing in innovation and maintaining operational discipline to drive sustainable growth and profitability.” – Ashim Gupta, COO & CFO .
  • “We view fiscal 2026 as a foundational year that will position us to drive meaningful new revenue streams in fiscal 2027 and beyond as agentic automation scales more broadly across our customer base.” – Ashim Gupta .
  • On Maestro differentiation: “We connect agents with robots and people…enterprise-level fixed workflows…with modern analytics and process mining insights…a very unique proposition in the market.” – Daniel Dines .

Q&A Highlights

  • Macro/public sector: Environment remains variable; federal renewals on track but new budgets still in transition; early federal win (USAF Agentic Airmen) encouraging, but guidance remains prudent .
  • Estimates/linearity: Q2 vs Q3 deal mix shifted favorably; Q2 guide reflects that; FX impact minimal; pipeline quality supported by active agentic POCs/POVs .
  • Pricing/monetization: Agentic monetized via consumption-based model; early customer feedback positive as pricing ties to adoption/use cases .
  • Competitive dynamic: Replacements/displacements driven by need to consolidate RPA with agentic on a single platform for governance/security; Maestro differentiates vs agent-only orchestrators .
  • KPIs: DBNRR at 108% (down from 110%); gross retention 97%; customers ≥$100K ARR up to 2,365; ARR $1.693B with $27M net new ARR .

Estimates Context

  • Q1 FY26 results vs S&P Global consensus: Revenue $356.6M vs $332.3M; Primary EPS $0.11 vs $0.10; beat on both metrics . Consensus values marked with asterisks.*
  • Q2 FY26 context: Company guides revenue $345–$350M; S&P Global revenue consensus ~$347.3M and Primary EPS ~$0.083; guide broadly in line on revenue; EPS consensus implies seasonal sequential step-up into H2 . Consensus values marked with asterisks.*

S&P Global disclaimer: All values marked with an asterisk (*) are retrieved from S&P Global.

Key Takeaways for Investors

  • Beat-and-raise quarter underpins improving execution; subscription strength offset license softness; watch near-term NRR/ARR momentum as agentic monetization builds into FY27 .
  • FY26 raised guidance and reiterated FCF/gross margin targets suggest durable operating discipline even as the platform shifts to agentic; upside optionality tied to faster agentic adoption .
  • Product narrative is resonating: open, vendor-agnostic orchestration (Maestro) across agents/robots/people plus deep Microsoft and Google ties create differentiated enterprise positioning .
  • Federal remains a swing factor; early wins but procurement cadence still normalizing—management remains prudently conservative in outlook .
  • Shareholder returns ongoing (21.9M shares repurchased in Q1) provide support; balance sheet strong with ~$1.59B in liquidity and no debt .
  • Near-term trading: positive setup from beats and raised FY guide; monitor Q2 execution vs linearity shift and any updates on agentic contributions or public sector stabilization at the next print .
  • Medium-term thesis: if agentic ramps as planned, PATH can expand TAM, sustain double-digit ARR growth, and compound margins/FCF; risk remains on macro/federal and competitive responses in agent orchestration .

Additional quantitative details and reconciliations are available in the UiPath Q1 FY26 press release and 8-K exhibit 99.1 , and prior quarter materials for trend analysis .