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  Title	UiPath (PATH) Stock Soars After First GAAP-Profit Quarter: Earnings Beat, Analyst Targets and 2026 Outlook
  ID	28945026
  External ID	5ebfd7fdcc924b64e7d66dfbfbd0555d
  Author	Shan Ahmed Khan
  Published Date	Dec. 4, 2025, 6:49 a.m.
  Summary	UiPath (PATH) Stock Soars After First GAAP-Profit Quarter: Earnings Beat, Analyst Targets and 2026 Outlook - TechStock²
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  URL	https://ts2.tech/en/uipath-path-stock-soars-after-first-gaap-profit-quarter-earnings-beat-analyst-targets-and-2026-outlook
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  Content ID	36560632
  Key	60c0d25d-3e5c-4450-9e09-ca04f79a65db
  Content	UiPath Inc. (NYSE: PATH) is back in the spotlight on December 4, 2025, after delivering its first GAAP-profitable quarter and lifting guidance, sending the stock sharply higher into the mid‑teens. The move has triggered a wave of fresh analyst commentary, updated price targets, and new short‑term trading forecasts. Below is a structured look at the latest UiPath stock news, forecasts, and analysis as of December 4, 2025. On Wednesday, December 3, UiPath shares closed at $14.86, up about 3.9% on the day. [1] Following the Q3 fiscal 2026 earnings release after the close, PATH: Jumped to roughly $16.91 in extended trading, a gain of nearly 14% versus the regular‑session close. [2] in extended trading, a gain of nearly 14% versus the regular‑session close. Traded around $16.18 pre‑market Thursday, up about 8.9%. [3] Multiple outlets attribute the move to: An earnings beat on both revenue and earnings per share (EPS). [4] on both revenue and earnings per share (EPS). Raised Q4 guidance that modestly tops Wall Street expectations. [5] that modestly tops Wall Street expectations. UiPath's first GAAP‑profitable quarter, which investors have been waiting on for years. [6] In short: the market is rewarding UiPath for showing that its automation and 'agentic AI' story can translate into real profitability, not just growth. UiPath's third quarter of fiscal 2026 (three months ended October 31, 2025) was the clearest sign yet that the company can scale profitably. From the company's official earnings release and related coverage: [7] Revenue: $411 million Up 16% year‑over‑year , versus about $355 million a year ago. Zacks notes this beat its consensus estimate by roughly 4.7%. [8] $411 million ARR (Annualized Recurring Revenue): $1.782 billion Up 11% year‑over‑year , with $59 million in net new ARR. [9] $1.782 billion Profitability: GAAP operating income: $13 million (first GAAP‑profitable quarter). [10] Non‑GAAP operating income: $88 million, implying a ~21% non‑GAAP operating margin. [11] GAAP net income: about $198.8 million , or $0.37 per share , versus a loss of roughly $0.02 per share a year ago. [12] Adjusted EPS (non‑GAAP): around $0.16 , ahead of consensus estimates that ranged from $0.14 to $0.15. [13] around , ahead of consensus estimates that ranged from $0.14 to $0.15. Margins and cash: GAAP gross margin: 83% ; non‑GAAP gross margin: 85% . Operating cash flow: $28 million ; non‑GAAP adjusted free cash flow: $28 million . Cash and marketable securities: $1.52 billion . [14] The large gap between operating income ($13 million GAAP) and net income (~$199 million) suggests meaningful non‑operating items (for example, tax or fair‑value effects), which is why management and most analysts continue to anchor on non‑GAAP operating income and free cash flow as the primary profitability metrics. [15] UiPath also increased its outlook for the fourth quarter of fiscal 2026, which covers the period ending January 31, 2026. According to the earnings release and accompanying coverage, management now expects: [16] Q4 FY26 revenue: Range of $462–467 million . This is slightly above the prior Wall Street consensus of around $463 million. Q4 ARR: Expected between $1.844–1.849 billion , implying continued double‑digit recurring‑revenue growth. Q4 non‑GAAP operating income: Around $140 million , suggesting further operating‑margin expansion. Fiscal 2026 (full year) non‑GAAP free cash flow: Roughly $370 million , with management also targeting sustained non‑GAAP gross margins around 85% . Zacks' model, based on consensus estimates, now points to: [17] Q4 EPS of about $0.25 on revenue near $462.7 million . on revenue near . Full‑year EPS around $0.65 on revenue of roughly $1.57 billion. That combination – mid‑teens revenue growth plus rapidly improving margins and cash generation – is a big part of why the stock is responding so strongly. Beyond the numbers, UiPath is positioning itself as a central operating layer for 'agentic automation' – essentially software agents that coordinate AI models, bots, and humans across workflows. Recent strategic highlights from UiPath's own disclosures and external coverage include: [18] Agentic automation adoption: Over 950 companies are now developing agents on UiPath's platform, orchestrating more than 365,000 processes through its Maestro orchestration layer. Major AI partnerships and integrations: Integration with Microsoft Azure AI Foundry , allowing UiPath agents to work with Azure AI agents and models. A ChatGPT connector built in collaboration with OpenAI , linking OpenAI models into enterprise workflows through UiPath orchestration. A conversational agent using Google's Gemini models for voice‑enabled automation. Collaboration with NVIDIA , using Nemotron models and NIM microservices to add high‑trust AI to sensitive workflows like fraud detection and healthcare. Ecosystem and trust: UiPath was named a Leader and Star Performer in the Everest Group Intelligent Process Automation Platform assessment. It also appears as a Leader in Gartner's new Magic Quadrants for Intelligent Document Processing and AI‑augmented software testing tools. The UiPath Platform was included in TIME's 'Best Inventions of 2025' and the company gained ISO/IEC 42001 AI management certification and became a founding technical contributor to the AIUC‑1 security framework. Earnings‑call summaries note that agentic automation and AI are driving pipeline and customer interest, but management does not expect these new capabilities to materially add to fiscal 2026 revenue yet. [19] With Thursday's pre‑market move, UiPath is now trading firmly in the mid‑teens, recovering from earlier weakness in 2025. From price‑history and performance trackers: [20] Recent trend: Closed at $14.86 on December 3, up for the fourth straight session and higher in 7 of the last 10 trading days. Over the prior two weeks, the stock had already gained about 8% , even before the big post‑earnings spike. Volatility: On December 3, PATH traded between $14.17 and $15.00 , a roughly 5.9% intraday swing, on heavy volume (around 29–42 million shares, depending on the source). [21] Year‑to‑date and 12‑month view: Several analyses place UiPath's 2025 year‑to‑date gain in roughly the low‑ to mid‑teens percentage range. [22] Over the last 12 months, the stock has been close to flat overall (around ‑0.6% by one estimate), underperforming the broader S&P 500. [23] The 52‑week range sits between about $9.38 and $18.74 . [24] In short, UiPath entered this earnings print as a somewhat out‑of‑favor AI/automation name – and is now rapidly re‑rating as investors digest the profit inflection. Technical services that track UiPath have turned more constructive following the recent run‑up. A StockInvest technical model updated after the December 3 close characterizes PATH as a short‑term 'buy candidate' and notes: [25] The stock is in the middle of a 'very wide and strong rising trend' in the short term. in the short term. Based on this trend, the model projects roughly 15% upside over the next three months , with a 90% probability that the price ends that window between about $15.03 and $23.12 . , with a 90% probability that the price ends that window between about . Short‑term support is clustered near $14.82 , with notable resistance around $16.48 and higher levels in the high teens. , with notable resistance around and higher levels in the high teens. Average daily volatility sits in the 3–4% range, which they classify as medium risk. Of course, these are purely technical, historically‑based forecasts – useful as context for traders but not a guarantee of future performance. Wall Street's view on UiPath is cautiously optimistic but far from euphoric. The latest batch of notes and aggregators show a consensus 'Hold' with price targets that cluster around current levels. Recent actions around the December 3–4 earnings window include: [26] RBC Capital Markets Raised its price target to $16 from $14 and maintained a Sector Perform (Hold‑equivalent) rating. RBC cited a 'good quarter' with solid execution and early 'agentic traction,' but stressed that it wants to see more material share‑gains in what it calls a 'highly competitive agent orchestration opportunity.' Needham & Co. Reiterated a Hold rating, even after the profit beat and guidance raise. The firm wants more evidence that this improvement is sustainable rather than another one‑off, and notes that 14 analysts have revised earnings estimates upward for the coming period, with net income expected to grow this year. [27] CFRA Upgraded UiPath to Buy from Hold , highlighting upward revisions to EPS forecasts and renewed confidence in sales growth, as well as UiPath's positioning at the intersection of RPA (robotic process automation) and AI. [28] UBS (earlier in the quarter) Upgraded UiPath to Neutral from Sell and set a $17 price target, reflecting a more balanced risk‑reward profile after prior underperformance. [29] Two major aggregators show broadly similar pictures: TipRanks: 18 Wall Street analysts over the last three months. Average 12‑month target: $13.82, with a high of $17 and a low of $12 . That average target implies very modest downside versus a recent reference price of about $14.12 . Overall rating: Hold , with 2 Buys, 15 Holds, and 1 Sell. [30] MarketBeat: Reports a consensus target price of about $13.71 and an average rating of 'Hold' based on 2 Buy, 14 Hold, and 2 Sell ratings. [31] Net‑net: even after a strong print, Wall Street treats UiPath as a solid but not yet runaway AI winner. Current targets cluster just below or around where the stock is trading post‑earnings. A key tension in the UiPath story is the trade‑off between growth and valuation. On the growth side: Recent analyses citing Street models suggest UiPath's revenue could grow at roughly a high‑single‑digit compound annual rate through fiscal 2028 – healthy, but slower than some higher‑flying AI peers. [32] through fiscal 2028 – healthy, but slower than some higher‑flying AI peers. Zacks notes that UiPath has beaten EPS and revenue estimates in multiple consecutive quarters, and its Internet–Software peer group sits in the better half of their industry rankings. [33] On the valuation side: Pre‑earnings write‑ups from trading sites highlighted UiPath's very high trailing P/E multiple – in the several‑hundred‑times range based on recent GAAP earnings – and thin historical profit margins. [34] – in the several‑hundred‑times range based on recent GAAP earnings – and thin historical profit margins. The profit inflection in Q3 helps, but much of that net income is non‑operational, and investors still need to see several more quarters of consistent operating‑margin expansion to justify premium multiples. Put differently: the market is now pricing in continued margin improvement plus steady, if not explosive, growth. If either side of that equation disappoints, the downside could be meaningful. Institutional ownership and insider trades add another layer of nuance to the UiPath narrative. A recent MarketBeat summary of SEC filings reports: [35] Franklin Resources cut its UiPath position by about 29.8% in the second quarter, selling 84,819 shares and ending the period with roughly 199,636 shares valued at around $2.6 million . cut its UiPath position by about in the second quarter, selling and ending the period with roughly valued at around . A range of smaller investors and advisors increased holdings, but the overall pattern shows some profit‑taking among larger funds. Insiders have been net sellers , offloading about 2.3 million shares (roughly $34 million in value) over the last quarter. , offloading about (roughly in value) over the last quarter. Insiders still own over 23% of UiPath, while hedge funds and institutions together hold around 62–63% of the float. While insider selling is common at tech companies with heavy stock‑based compensation, the scale of sales – combined with only lukewarm consensus ratings – is one reason some analysts remain cautious even after Q3's strong print. [36] Even bullish commentary on UiPath is paired with a clear list of risks. Recent earnings‑call summaries and analyst notes emphasize: [37] Agentic adoption risk: Agentic automation is central to UiPath's long‑term story, but monetization is still early. If customers are slow to adopt or competitors out‑innovate on orchestration, growth could lag expectations. Agentic automation is central to UiPath's long‑term story, but monetization is still early. If customers are slow to adopt or competitors out‑innovate on orchestration, growth could lag expectations. Competitive intensity: UiPath faces pressure from large cloud and AI vendors, as well as other automation platforms. Some analysts describe the space as a 'highly competitive agent orchestration opportunity' , where moat strength is still being tested. UiPath faces pressure from large cloud and AI vendors, as well as other automation platforms. Some analysts describe the space as a , where moat strength is still being tested. Net retention and lower‑end weakness: Earnings‑call digests point to some pressure in lower‑end customer segments and evolving consumption/pricing patterns, which can weigh on net retention even as large‑enterprise demand remains solid. Earnings‑call digests point to some pressure in lower‑end customer segments and evolving consumption/pricing patterns, which can weigh on net retention even as large‑enterprise demand remains solid. FX and macro headwinds: Management explicitly called out FX as a headwind to guidance, and analysts continue to flag broader macro uncertainty as a risk to automation budgets. Management explicitly called out FX as a headwind to guidance, and analysts continue to flag broader macro uncertainty as a risk to automation budgets. Execution on margins: UiPath just achieved GAAP profitability for the first time, but some firms (like Needham) want to see multiple quarters of sustained profitability before treating the new margin profile as durable rather than a one‑off. For investors, these aren't red flags as much as they are reminders that the path from 'promising AI platform' to 'mature, profitable compounder' is rarely straight. As of December 4, 2025, the UiPath story looks materially stronger than it did just a few months ago: The company is growing revenue at mid‑teens rates , with double‑digit ARR growth and a strong base of recurring revenue. [38] , with and a strong base of recurring revenue. It has delivered its first GAAP‑profitable quarter , with clear evidence of operating‑margin leverage and improving free cash flow. [39] , with clear evidence of operating‑margin leverage and improving free cash flow. UiPath is emerging as a key player in agentic automation, with deep partnerships across the AI ecosystem (OpenAI, Microsoft, Google, NVIDIA, Snowflake) and strong third‑party validation from Gartner and Everest Group. [40] At the same time: Street price targets sit only slightly below or around current trading levels , and the consensus rating is a clear Hold , not a screaming Buy. [41] , and the consensus rating is a clear , not a screaming Buy. Growth is expected to be solid but not hyper‑growth, and UiPath will need to prove that Q3's profitability is repeatable . [42] . Institutional and insider activity shows some profit‑taking, and the stock's valuation still assumes continued execution on both growth and margins. [43] For long‑term followers of UiPath, Q3 FY26 is an important inflection point: the company is no longer just an automation growth story, but a credible profit and cash‑flow story as well. Whether today's rally marks the start of a sustained uptrend or a short‑term relief pop will depend on what UiPath does with this momentum over the next few quarters. 1. stockinvest.us, 2. www.benzinga.com, 3. www.benzinga.com, 4. www.nasdaq.com, 5. ir.uipath.com, 6. ir.uipath.com, 7. ir.uipath.com, 8. www.nasdaq.com, 9. ir.uipath.com, 10. ir.uipath.com, 11. ir.uipath.com, 12. www.ainvest.com, 13. www.nasdaq.com, 14. ir.uipath.com, 15. ir.uipath.com, 16. ir.uipath.com, 17. www.nasdaq.com, 18. ir.uipath.com, 19. seekingalpha.com, 20. stockinvest.us, 21. stockinvest.us, 22. www.nasdaq.com, 23. www.investing.com, 24. stockinvest.us, 25. stockinvest.us, 26. www.investing.com, 27. www.investing.com, 28. stockstotrade.com, 29. www.marketscreener.com, 30. www.tipranks.com, 31. www.marketbeat.com, 32. www.fool.com, 33. www.nasdaq.com, 34. stockstotrade.com, 35. www.marketbeat.com, 36. www.marketscreener.com, 37. seekingalpha.com, 38. ir.uipath.com, 39. ir.uipath.com, 40. ir.uipath.com, 41. www.tipranks.com, 42. www.nasdaq.com, 43. www.marketbeat.com analyst forecast earnings report financial news Stock Market UiPath
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