UiPath Beats Q2 Estimates but Shares Plunge After Buyback Pullback

Overview

• UiPath reported fiscal Q2 2027 revenue of about $410 million, a 13% year-over-year gain, and annual recurring revenue of $1.938 billion, up 12% with $37 million in net new ARR and a 109% dollar-based net retention rate.
• Management raised fiscal 2027 guidance to $1.789 billion–$1.794 billion in revenue and set ARR targets of $2.065 billion–$2.070 billion by January 31, 2027, signaling modest upside to prior forecasts.
• Profitability improved materially as the company delivered roughly $32 million in GAAP operating income, $89 million in adjusted operating income, and gross margins near 80–83%, marking its fourth consecutive GAAP-profitable quarter.
• Markets reacted violently: the stock initially jumped after the print then fell as much as about 18% on heavy selling driven by concerns over growth reacceleration, valuation and a steep drop in buybacks to 2.4 million shares from 20.4 million the prior quarter, with analysts issuing mixed responses.
• UiPath pushed its agentic automation strategy — saying AI featured in 18 of its top 20 deals and rolling out Maestro products — while shifting senior roles such as promoting Hitesh Ramani to CFO and refocusing Ashim Gupta as COO, though the company has not disclosed agentic-specific revenue so the impact on incremental customer spend remains unclear.