UiPath Q2 Preview: Revenue estimated at $397.95M, stock up 36%
- UiPath reports Q2 results Thursday; stock up 36% in one month
- Analysts estimate revenue at $397.95M, up from $362M in Q2 last year
- EPS expected at 15 cents, matching prior year total
- ARR guidance set at $1.929B-$1.934B vs $1.901B in Q1
*this image is generated using AI for illustrative purposes only.
UiPath Inc. (NYSE: PATH) reports second-quarter financial results after market close on Thursday. The AI software company enters the earnings window with shares up 36% over the last month, outpacing its year-to-date gain of 14.6%.
Analysts project revenue of $397.95 million, reflecting growth from $362.00 million in the prior year’s second quarter. This estimate aligns with the company’s guidance range of $395 million to $400 million. Despite the year-over-year increase, the figure follows three consecutive quarters of revenue exceeding $411 million.
Earnings and Recurring Revenue Outlook
Earnings per share are expected to match last year’s second-quarter total of 15 cents. UiPath missed analyst estimates for earnings per share in the first quarter but has beaten estimates in nine of the last ten quarters overall. Revenue estimates have been beaten in five straight quarters.
Annual recurring revenue (ARR) is a key focus. In the first quarter, ARR reached $1.901 billion, up 12% year-over-year. Management expects ARR to fall between $1.929 billion and $1.934 billion for the second quarter.
| Metric | Estimate / Range | Prior Year Q2 | Source |
|---|---|---|---|
| Revenue | $397.95 million | $362.00 million | Analysts |
| EPS | 15 cents | 15 cents | Analysts |
| ARR Range | $1.929B - $1.934B | N/A | Company Guidance |
Analyst Ratings and Stock Performance
UiPath stock trades at $17.76, down 2% on Wednesday. The share price is near its highest level since December 2025, within a 52-week range of $9.20 to $19.84.
Recent analyst actions include:
- UBS maintained a Neutral rating, raising the price target from $12 to $19.
- RBC Capital maintained a Sector Perform rating, raising the price target from $12 to $15.
What the Numbers Show
The divergence between the projected quarterly revenue decline and the consistent ARR growth highlights a shift in revenue recognition timing. While quarterly revenue is expected to dip below the recent $411 million floor, the guided ARR range of $1.929 billion to $1.934 billion suggests underlying demand remains stable. Investors will watch whether agentic products moving from pilot to production can offset the seasonal revenue softness.
How will the transition of agentic AI products from pilot to production phases impact UiPath's revenue recognition timing and future quarterly growth trajectories?
Given the divergence between declining quarterly revenue and stable ARR growth, what specific changes in sales cycles or contract structures might be driving this shift?
Will UiPath's ability to beat EPS estimates in nine of the last ten quarters be sustainable if quarterly revenues continue to dip below the $411 million mark?
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