UiPath — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Revenue was $410 million, an increase of 13 percent year-over-year.
• Annualized Renewal Run-rate (ARR) was $1.938 billion as of July 31, 2026, an increase of 12 percent year-over-year.
• Net new ARR was $37 million.
• Dollar-based net retention rate was 109 percent.
• GAAP operating income was $32 million, compared to a loss of $20.2 million in the prior year period.
• Non-GAAP operating income was $89 million, compared to $62.3 million in the prior year period.
• GAAP gross margin was 80 percent; Non-GAAP gross margin was 82 percent.
• Net cash flow from operations was $31 million.
• Non-GAAP adjusted free cash flow was $31 million.
• Cash, cash equivalents, and marketable securities totaled $1.405 billion as of July 31, 2026.
• Deferred revenue was $543.6 million (current) and $71.7 million (non-current), totaling $615.3 million as of July 31, 2026, down from $707.3 million as of January 31, 2026.

Guidance and Future Outlook

• For the third quarter fiscal 2027, revenue is expected to be between $440 million and $445 million.
• For the third quarter fiscal 2027, ARR is expected to be between $1.992 billion and $1.997 billion as of October 31, 2026.
• For the third quarter fiscal 2027, non-GAAP operating income is expected to be approximately $100 million.
• For the full year fiscal 2027, revenue is expected to be between $1.789 billion and $1.794 billion.
• For the full year fiscal 2027, ARR is expected to be between $2.065 billion and $2.070 billion as of January 31, 2027.
• For the full year fiscal 2027, non-GAAP operating income is expected to be approximately $445 million.
• Management noted that GAAP operating income guidance is not available without unreasonable efforts due to the high variability of stock-based compensation expense related to equity awards.

Business Segments and Product Lines

• Launched "Maestro Case," an AI-native case management capability designed to govern dynamic, exception-laden processes across systems and people.
• Announced "UiPath Maestro Flow," a developer-first orchestration canvas allowing builders to design, run, observe, and govern end-to-end processes as a single artifact using any coding agent.

Management Commentary and Tone

• Daniel Dines, Founder and CEO, expressed pleasure with the results, citing disciplined execution and growing momentum. He emphasized that AI is expanding automation opportunities while increasing the need for orchestration and governance, positioning UiPath at the center of this opportunity.
• Ashim Gupta, COO, stated the company exceeded guidance across all key financial metrics, reflecting operating discipline and customer/partner momentum.
• Hitesh Ramani, CFO, expressed excitement to turn the opportunity into sustainable growth and long-term value creation through disciplined execution.

Other Key Points

• Leadership changes were announced to sharpen focus: Ashim Gupta will focus exclusively on his role as COO; Hitesh Ramani was promoted to Chief Financial Officer; Brad Brubaker was named Chief Legal & Administrative Officer with expanded oversight of the People organization.
• Yazdi Bagli, Executive Vice President of IT and Enterprise Business Services at Kaiser Permanente, was appointed to the Board of Directors.
• The company reported $268.5 million in repurchases of Class A common stock for the six months ended July 31, 2026.
• Payments related to business acquisitions, net of cash acquired, were $149.4 million for the six months ended July 31, 2026.
• Goodwill increased to $179.5 million as of July 31, 2026, from $125.3 million as of January 31, 2026.
• Intangible assets, net, increased to $101.5 million as of July 31, 2026, from $20.0 million as of January 31, 2026.