UiPath beats on revenue but its stock tanks after-hours

UiPath had a solid quarter on paper, then watched the market shrug and walk away. The company said second-quarter revenue rose 13% to $410 million, topping analyst estimates of $397.8 million. Earnings came in at 15 cents a share, matching expectations. Net income climbed to $36.1 million from $1.6 million a year earlier.

The bigger signal was the full-year guide. UiPath lifted its fiscal 2027 revenue forecast to a range of $1.789 billion to $1.794 billion, up from an earlier $1.776 billion to $1.781 billion range. For the current quarter, it sees revenue between $440 million and $445 million, with the midpoint above the Street’s $441.2 million estimate.

That still wasn’t enough to keep the stock moving up. Shares jumped more than 10% right after the report, then flipped and were down more than 7% at the time of writing. The company has had a strong run over the last year, with the stock up more than 70%, but this year’s gain is only 12% as investors worry that AI models could chip away at its customer base.

UiPath is trying to answer that concern by leaning harder into AI itself. It sells robotic process automation software that runs on rigid rules, but it has also rolled out AI agents that can reason, adapt and work on their own. Founder and CEO Daniel Dines says AI makes orchestration, governance and exactness more valuable, not less. UiPath also said annual recurring revenue reached $1.94 billion, up 12%, and its dollar-based net retention rate improved to 109%, both signs that existing customers are spending more.

The company also shuffled its executive team, including promoting chief accounting officer Hitesh Ramani to chief financial officer. Dines said the changes are meant to sharpen speed and accountability. Wall Street, though, seems to want more than better execution and nicer guidance before it stops treating UiPath like a stock caught between two eras.