UiPath Stock's Price Struggles Continue After Earnings: What to Know
UiPath stock has been a market laggard this year and losses are accelerating even after the company's beat-and-raise quarter.


UiPath (PATH) stock is struggling for direction Friday even after the enterprise automation company beat top- and bottom-line expectations for its second quarter and raised its full-year outlook.
In the three months ended July 31, UiPath's revenue increased 10.1% year-over-year to $316.3 million, driven by a 21.7% jump in subscription revenue to $194.7 million. Its earnings per share (EPS) declined to 4 cents from 9 cents in the year-ago period.
"We are pleased with our second quarter results, with annual recurring revenue growing 19% year-over-year, a testament to the team's improved execution and the compelling value that our AI-powered automation platform delivers to our customers," said UiPath CEO Daniel Dines in a statement.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The executive adds that conversations with clients "deepen our conviction that there is an increasing need for AI and automation, and our unwavering commitment to innovation continues to position us as the automation platform of choice for capturing the opportunities that AI brings to an enterprise."
The results beat analysts' expectations. Wall Street was anticipating revenue of $304 million and earnings of 3 cents per share, according to CNBC.
"We delivered durable growth at scale while driving disciplined decision-making, enabling us to raise our profitability guidance for the full year," said UiPath Chief Financial Officer Ashim Gupta in a statement. The company now anticipates revenue in the range of $1.42 billion to $1.425 billion, up from its previous forecast of $1.405 billion to $1.41 billion.
UiPath also announced a $500 million expansion to its share repurchase program. With the new authorization, the company can now repurchase up to $554 million of its outstanding shares, or roughly 8% of its current market cap. Stock buybacks can help boost the share price.
Is UiPath stock a buy, sell or hold?
Today's technical troubles are just more of the same for UiPath, which is down roughly 51% for the year to date. And Wall Street is on the sidelines when it comes to the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for the PATH stock is $15.71, representing implied upside of over 20% to current levels. Meanwhile, the consensus recommendation is a Hold.
Financial services firm Oppenheimer is one of those with a Perform rating (equivalent to a Hold) on PATH stock.
"UiPath is the defining pure-play software supplier in Robotic process automation and exerts a market leadership position," says Oppenheimer analyst Brian Schwartz. "It is the largest pure-play company by revenue and is also one of the fastest growers in the category too. However, execution has been inconsistent and the business is in transition. We believe shares are fairly valued at current levels, and we would wait on the sidelines for a better entry point."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
The Role of the U.S. Dollar in Retirement: Is It Secure?
Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
By Adam Shell
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®
-
The Home Stretch: Seven Essential Steps for Pre-Retirees
The decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
By Mike Dullaghan, AIF®
-
Stock Market Today: Great Power Affairs Mesmerize Markets
The U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
By David Dittman
-
Three Options for Retirees With Concentrated Stock Positions
If a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
By Evan T. Beach, CFP®, AWMA®