Total Revenue

+6.4% (from $335.112M to $356.624M)

Total revenue increased by 6.4% YoY, driven by an expanded subscription services mix that has been growing in previous periods, partially offset by declining license revenue due to the ongoing transition to Flex Offerings. " "

Subscription Services

+17% (from $185.131M to $217.303M)

Subscription Services grew by 17% YoY as a result of increased adoption by both new and existing customers and stronger sales execution, a trend that was already evident in the previous period. " "

Licenses

-8.6% (from $140.128M to $128.286M)

Licenses revenue declined by 8.6% YoY reflecting the continued strategic shift away from traditional licensing to subscription-based Flex Offerings, a pattern consistent with previous period adjustments. " "

Professional Services

+12.2% (from $9.853M to $11.035M)

Professional Services revenue increased YoY due to enhanced service offerings and stronger customer adoption, building on prior period initiatives that expanded this segment. " "

EMEA Revenue

+18% (from $104.6M to $123.7M)

EMEA revenue rose by roughly 18% YoY, driven by expanded sales efforts and accelerated subscription adoption in the region, following patterns observed in earlier periods. " "

APAC Revenue

-7.5% (from $77.4M to $71.6M)

APAC revenue decreased by approximately 7.5% YoY, likely due to regional macroeconomic headwinds and competitive pressures, mirroring challenges previously noted as the revenue mix shifts. " "

Americas Revenue

+5.3% (from $153.1M to $161.4M)

Americas revenue saw a modest increase YoY, with subscription services growth offsetting a decline in licenses, consistent with overall trends from the prior period. " "

Operating Income (Loss)

Improved (loss narrowed from $(49,465)K to $(16,412)K)

Operating loss narrowed significantly due to better cost management, improved margin performance from the growing subscription revenue base, and operational efficiencies that continued from previous period initiatives. " "

Net Cash Provided by Operating Activities

+19% (from $100,037K to $119,002K)

Net cash from operations increased by about 19% YoY, driven by higher cash collections from customers and improved operational efficiency, building on the positive trends observed in previous periods. " "

Net Income

Improved (loss reduced from $(28,736)K to $(22,555)K)

Net loss improved by reducing the negative bottom line, due to revenue growth and cost control measures that were initiated in previous periods, though the company still reported a net loss. " "

Revenue ($USD Millions)

Q2 2026

no prior guidance

$345–$350 "

no prior guidance

ARR ($USD Billions)

Q2 2026

no prior guidance

$1.715–$1.720 "

no prior guidance

Non-GAAP Operating Income ($USD Millions)

Q2 2026

no prior guidance

$40 "

no prior guidance

Basic Share Count (Millions)

Q2 2026

no prior guidance

537 "

no prior guidance

Revenue ($USD Billions)

FY 2026

$1.525–$1.530 "

$1.549–$1.554 "

raised

ARR ($USD Billions)

FY 2026

$1.816–$1.821 "

$1.820–$1.825 "

raised

Non-GAAP Operating Income ($USD Millions)

FY 2026

$270 "

$305 "

raised

Non-GAAP Gross Margin (%)

FY 2026

85% "

85% "

no change

Non-GAAP Adjusted Free Cash Flow ($USD Millions)

FY 2026

$370 "

$370 "

no change

Agentic Automation Adoption

In Q2, Q3, and Q4 2025, UiPath repeatedly highlighted the evolution of its automation offering – from reimagining RPA (Q2 " " ) to describing Agentic Automation as a “paradigm shift” with rapid customer uptake and impressive pilot metrics (Q3 " " ) and strong validation with production pilots and large deals (Q4 " " ).

In Q1 2026, adoption was underscored by robust early metrics such as over 250,000 agent runs and 11,000 process instances, demonstrating an acceleration in customer engagement and higher early-stage activity. " "

Recurring with accelerated adoption. Positive customer momentum continues while scaling impressive use cases.

Early-Stage Revenue Challenges

Across Q2, Q3, and Q4 2025, executives noted that while Agentic Automation was gaining traction, its revenue contribution remained in its infancy. Comments in Q2 " and Q3 " pointed to new pricing models and pipeline potential while Q4 " emphasized that revenue impact would take time given current pilot and POC stages.

In Q1 2026, the company reiterated that Agentic Automation is not expected to materially contribute to revenue in fiscal 2026, focusing instead on foundational initiatives—in pilots and proofs of concept—to drive meaningful growth in fiscal 2027 and beyond. "

Recurring with stable sentiment. The short‐term revenue impact remains minimal while laying a long‐term foundation.

Macroeconomic Uncertainty

Q2 2025 described the environment as variable yet stable. " " In Q3 2025, executives mentioned a stable demand environment with long‐term focus " " , while Q4 2025 discussions detailed significant volatility and deal delays due to geopolitical and macroeconomic concerns. " "

In Q1 2026, executives addressed uncertainty by noting adjustments in revenue linearity and favorable shifts in deal mix despite ongoing macro challenges. This indicates managed exposure and more nuanced guidance in light of evolving conditions. " "

Recurring with improved clarity. While uncertainty persists, the company is adjusting strategies to mitigate its impact.

Federal/Public Sector Dynamics

Q2 2025 highlighted the achievement of FedRAMP and projected growth in public sectors " ; Q3 2025 mentioned positive government momentum " ; and Q4 2025 emphasized robust performance in the federal vertical with FedRAMP authorization and procurement challenges from government transitions. " " "

In Q1 2026, federal dynamics were discussed in the context of ongoing transitions (e.g. the U.S. Air Force initiative) and procurement challenges. However, there was no mention of FedRAMP updates, indicating that while the sector remains a focus, certain credentials were not restated in Q1. " " "

Recurring but shifted focus. Federal engagement remains key, though specific milestones (like FedRAMP) are less emphasized in Q1.

Cloud ARR Growth and Cloud-First Strategy

Q2 2025 and Q4 2025 featured strong emphasis on Cloud ARR growth—with Q2 ending with over $850 million ARR and Q4 reaching more than $975 million ARR—as well as a clear cloud-first transition to drive AI adoption and migration from on-premise to cloud. " " " " Q3 2025 noted a gradual shift to cloud deployments as hybrid usage persisted. "

In Q1 2026, there was no specific mention of Cloud ARR growth or cloud-first strategy, suggesting a temporary de-emphasis of the topic as the focus shifted to other product investments such as Agentic Automation and AI innovations.

No longer mentioned in current period. Prior emphasis on cloud transition has been de-prioritized relative to other initiatives.

AI Product Adoption and Innovation

From Q2 2025 through Q4 2025, UiPath consistently showcased progress in AI solutions—ranging from Autopilot and Document Understanding to generative AI testing, with clear customer ROI and strategic product launches that resonated across industries. " " " "

Q1 2026 amplified the narrative with significant new adoptions across AI products including the launch of the Agentic Automation platform, next-generation IDP (IXP), expanded Autopilot usage, and strategic AI partnerships (e.g. with Google Cloud), reflecting an enhanced product innovation strategy. " " " "

Recurring with enhanced emphasis. The innovation engine is evolving with greater product depth and strategic partnerships fueling growth.

Operational Efficiency and Execution

In Q2, Q3, and Q4 2025, UiPath communicated improvements in operational discipline—from restructuring and streamlined go-to-market functions (Q2 " " " ) to significant non-GAAP margin expansion and disciplined expense management in Q4 " " , tempered by execution challenges such as geopolitical volatility and public sector transitions. " "

In Q1 2026, improvements were highlighted by a marked reduction in GAAP operating loss, improved non-GAAP operating margins, and strong free cash flow generation, with stable leadership and a focus on reinforcing efficiency to support future investments. " " " "

Recurring with continued improvement. Operational execution metrics show consistent and strengthening efficiency gains.

Emerging Strategic Partnerships

In Q2 through Q4 2025, UiPath built on strategic alliances with SAP, Deloitte, Microsoft, and GSIs, expanding integration capabilities and accelerating market reach through joint solutions and pilot initiatives. " " "

In Q1 2026, the company introduced new aspects such as the “Customer Zero” initiative with Deloitte and expanded integration with Microsoft CoPilot Studio, as well as launching a new partner program that secured over 40 partners. These initiatives extend the company’s market reach and collaborative innovation efforts. " "

Recurring with growth. Strategic partnerships are expanding in scope and deepening in strategic impact.

Restructuring and Internal Organizational Realignment

Across Q2, Q3, and Q4 2025, restructuring efforts were a persistent theme—from realigning sales and central functions to breaking down silos and establishing a customer-centric approach, which helped drive margin improvements and operational discipline. " " " "

In Q1 2026, restructuring was described as substantially complete with a stable leadership team. The focus has shifted to fine-tuning minor adjustments to improve speed and focus, enabling the company to self-fund investments and capture growth opportunities. " " "

Recurring with stabilization. The major restructuring is complete, leading to a more stable and aligned organization poised for growth.