With PATH stock recovering after a decline, we assess its current status to decide on the best strategy for the future.
UiPath (PATH) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
UiPath's kitchen sink FY2026 guidance has triggered growth concerns after the robust 3Y top/bottom-line performance, with it contributing to the massive selloff thus far. This is worsened by the potentially impacted SaaS demand in both federal and commercial end markets, attributed to the DOGE headwinds and higher recessionary risks. Even so, given the still rich Free Cash Flow generation, robust balance sheet, and the growing ARR, we believe that PATH remains well positioned to outperform from current discounted levels.
UiPath (PATH) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Despite a 20% stock decline, we maintain a bullish view on UiPath due to its strategic pivot to Agentic AI and strong customer retention. PATH leads the growing RPA market, with robust demand and a competitive edge through ML, NLP, and intelligent document processing capabilities. The company's aggressive push into Agentic AI, including new features like autopilot and agent builder, positions it well in the expanding AI market.
Zacks.com users have recently been watching UiPath (PATH) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
UiPath's stock has dropped ~20% since January, presenting a buying opportunity for long-term investors, despite macroeconomic concerns and disappointing Q4 results. UiPath focuses on agentic automation, boasts a large ARR base, and has high gross margins, making it a strong AI investment. The stock is one of few software companies to trade at just ~2x revenue and ~10x FCF.
Zacks.com users have recently been watching UiPath (PATH) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
With PATH stock having corrected significantly, we assess its current status to decide on the best strategy for the future.
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UiPath's ARR is set to hit $1.816B in FY26 (+9% YoY), driven by 98% gross and 110% net retention. Cloud ARR surged past $975M (+50% YoY) as enterprise adoption of AI-driven automation accelerates. Profitability improved with a 32% non-GAAP margin, $328M free cash flow, and $1.7B cash (zero debt).