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UiPath, Inc. (PATH)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY26 delivered a clean beat: revenue $361.7M (+14% YoY) vs S&P Global consensus ~$347.3M; non-GAAP diluted EPS $0.15 vs consensus ~$0.08. GAAP gross margin 82% and non-GAAP gross margin 84%; non-GAAP operating margin 17% . Estimates marked with * are from S&P Global.
  • UiPath raised FY26 guidance: revenue to $1.571–$1.576B (from $1.549–$1.554B), ARR to $1.834–$1.839B (from $1.820–$1.825B), and non-GAAP operating income to ~$340M (from ~$305M) .
  • Key KPIs: ARR $1.723B (+11% YoY), net new ARR $31M, DBNR 108%, software gross margin 90% (non-GAAP), and cash/marketable securities $1.52B; buyback of 8.3M shares at ~$12.10 average supports capital return .
  • Near-term catalysts: continued agentic adoption (450+ customers building agents; ~1M agent runs), broad ecosystem partnerships (Microsoft, OpenAI, NVIDIA, Snowflake), and public sector normalization; management notes minimal FY26 top-line contribution from agentic in early phase, tempering expectations .

What Went Well and What Went Wrong

What Went Well

  • Revenue and EPS beat with stronger non-GAAP profitability: revenue $361.7M, non-GAAP operating income $62.3M (17% margin), non-GAAP EPS $0.15; “exceeded the high end of our guidance across all key financial metrics” .
  • Agentic platform traction and ecosystem: 450+ customers actively developing agents; UiPath Maestro orchestrated ~170K process instances; partnerships deepened with Microsoft, OpenAI, NVIDIA, and Snowflake, supporting ROI narratives. “Automation and AI are stronger together…what brings it all together is orchestration” .
  • Public sector momentum and GTM stabilization: wins with Veterans Affairs, Coast Guard; U.S. Navy expanding IDP; GTM rebuilt for scale with value-based plays and tighter pipeline inspection, improving predictability .

What Went Wrong

  • GAAP results remain subdued: GAAP operating loss of $(20)M and GAAP diluted EPS ~$0.00 despite non-GAAP strength; professional services cost intensity elevated (COGS PS&O $24.95M) .
  • Licenses revenue flat YoY (Q2 licenses $112.2M vs $112.3M prior year), highlighting mixed demand in perpetual-like motions; DBNR steady at 108% but below FY25 Q4’s 110% .
  • Management cautions agentic monetization is early; “don’t expect a material top-line contribution in fiscal 2026,” and macro variability persists despite FX tailwinds in guidance .

Financial Results

Headline Metrics vs Prior Periods and Estimates

MetricQ4 FY25Q1 FY26Q2 FY26
Revenue ($USD Millions)$423.6 $356.6 $361.7
Revenue Consensus ($USD Millions)*$425.3*$332.3*$347.3*
GAAP Gross Margin (%)85% 82% 82%
Non-GAAP Gross Margin (%)87% 84% 84%
GAAP Operating Margin (%)8% (5)% (6)%
Non-GAAP Operating Margin (%)32% 20% 17%
GAAP Diluted EPS ($)$0.09 $(0.04) $0.00
Non-GAAP Diluted EPS ($)$0.26 $0.11 $0.15
EPS Consensus ($)*$0.19*$0.10*$0.08*

Values with * are retrieved from S&P Global.

Segment Revenue

Segment ($USD Millions)Q4 FY25Q1 FY26Q2 FY26
Licenses$197.6 $128.3 $112.2
Subscription Services$215.2 $217.3 $238.4
Professional Services & Other$10.8 $11.0 $11.2
Total Revenue$423.6 $356.6 $361.7

KPIs

KPIQ4 FY25Q1 FY26Q2 FY26
ARR ($USD Billions)$1.666 $1.693 $1.723
Net New ARR ($USD Millions)$60 $27 $31
Dollar-Based Net Retention (%)110% 108% 108%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 FY26N/A$390–$395 N/A
ARR ($USD Billions)Q3 FY26N/A$1.771–$1.776 N/A
Non-GAAP Operating Income ($USD Millions)Q3 FY26N/A~$70 N/A
Revenue ($USD Billions)FY26$1.549–$1.554 $1.571–$1.576 Raised
ARR ($USD Billions)FY26$1.820–$1.825 $1.834–$1.839 Raised
Non-GAAP Operating Income ($USD Millions)FY26~$305 ~$340 Raised
Non-GAAP Adjusted FCF ($USD Millions)FY26N/A~$370 N/A
Non-GAAP Gross Margin (%)FY26N/A~85% N/A

CFO noted FX tailwinds embedded in guidance: ~+$2M for Q3 revenue/ARR and ~+$7M for FY26 revenue/ARR since Q1 guide .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY25)Previous Mentions (Q1 FY26)Current Period (Q2 FY26)Trend
AI/Technology InitiativesIntroduced Autopilot, Agent Builder, Agentic Orchestration; Agentic Testing preview Launched agentic platform; Test Cloud; Microsoft Copilot Studio integrations Expanded Maestro, Coded Agents, API workflows; Data Fabric; 450+ agent-building customers; ~1M agent runs Accelerating adoption
Public SectorOutlook uncertainty reflected in FY26 guide Macro prudence continued Normalization; wins at VA/Coast Guard; Navy expanding IDP; stronger momentum Improving
Partnerships/EcosystemDeloitte Agentic ERP solution Google Cloud partnership for medical record summarization Microsoft reinforcement; OpenAI connector; NVIDIA NIM/Nemotron; Snowflake Cortex AI Broadening ecosystem
Go-to-Market ExecutionStabilizing GTM; customer-centricity Improved execution Rebuilt for scale; value-based plays; tighter pipeline inspection; better predictability Stabilizing → Improving
Pricing/Monetization of AgenticN/AN/AConsumption-based pricing; positive reception; early-phase monetization; minimal FY26 top-line impact Early monetization

Management Commentary

  • CEO: “Automation and AI are stronger together…what brings it all together is orchestration. With UiPath Maestro, we unify agents, robots, and people…so outcomes are measurable and repeatable.”
  • CEO: “We exceeded the high end of our guidance across all key financial metrics…AI and agentic solutions are helping us win deals and increase deal sizes faster than traditional automation engagements.”
  • CFO: “We delivered overall gross margins of 84%, software gross margin was 90%…we repurchased 8.3 million shares at an average price of $12.10…we don’t expect a material top-line contribution in fiscal 2026.”
  • CFO: “We are raising guidance…reflecting progress on our operating priorities and incremental FX tailwind since Q1.”

Q&A Highlights

  • Agentic adoption and deal sizes: 450 customers actively building agents; agentic increases deal sizes and uncovers deterministic automation opportunities, reinforcing RPA/API demand .
  • DBNR stability and macro prudence: DBNR implied in guidance stabilizing; public sector buying normalizing, but prudence remains embedded .
  • Subscription revenue cadence: sequential step-up in subscription revenue in Q2 follows a leap-year impact in Q1; now “back to stable” .
  • Go-to-market health: pipeline quality, forecasting predictability, and field-product feedback loops improved; empowered, customer-centric field organization .
  • Maestro pitch: vendor-agnostic orchestration across systems; tight integration with automation platform differentiates vs business-system-native orchestrators .
  • Pricing: agentic portfolio monetized via consumption-based model; customers working through predictability of pricing/business cases .

Estimates Context

  • Q2 FY26: Revenue $361.7M vs consensus ~$347.3M*; non-GAAP diluted EPS $0.15 vs consensus ~$0.08*. Beat driven by agentic momentum, execution discipline, and FX tailwind .
  • Prior quarters: Q1 FY26 revenue $356.6M vs ~$332.3M* and non-GAAP EPS $0.11 vs ~$0.10* . Q4 FY25 revenue $423.6M vs ~$425.3M*, non-GAAP EPS $0.26 vs ~$0.19* .
  • Forward: Q3 FY26 consensus revenue ~$392.9M* and EPS ~$0.146*; management guides revenue $390–$395M and non-GAAP OI ~$70M, with ~+$2M FX tailwind since Q1 guide .

Values with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Strong print with beats on revenue and non-GAAP EPS; non-GAAP operating margin expanded to 17%, underscoring operating discipline amid agentic ramp .
  • FY26 guidance raised across revenue, ARR, and non-GAAP operating income; FX tailwinds contribute modestly, but underlying execution and adoption drive the increase .
  • Agentic orchestration (Maestro) and ecosystem partnerships (Microsoft, OpenAI, NVIDIA, Snowflake) are strategic levers for larger, multi-solution deals and stickier platform adoption .
  • Public sector shows improving momentum (VA, Coast Guard, Navy), reducing a prior headwind into 2H; monitor conversion from pilots to production scale .
  • Mix shift: Subscriptions continue to rise while licenses were flat YoY; recurring metrics (ARR, DBNR) stable to improving, supporting durability .
  • Non-GAAP vs GAAP gap remains: GAAP operating loss and near-zero GAAP EPS highlight ongoing SBC and restructuring add-backs; still, management targets GAAP profitability “near term” .
  • Watch catalysts: Fusion event product cadence, agentic monetization learning curve (consumption pricing), and Q3 execution vs prudent guide; CEO’s 10b5-1 plan (<5% holdings) is a potential sentiment overhang but not a control shift .