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.
-
Why Losing Your Job Could Be the Best Opportunity to Plan Your Future
Amid this uncertainty lies an opportunity for strategic reassessment and personal growth.
By Mario Hernandez Published
-
Can a New Manager Cure Vanguard Health Care Fund?
Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
By Nellie S. Huang Published
-
Can a New Manager Cure Vanguard Health Care Fund?
Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
By Nellie S. Huang Published
-
What You Don't Know About Annuities Can Hurt You
Lack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
By Ken Nuss Published
-
Three Keys to Logical Investing When Markets Are Volatile
Focusing on these market fundamentals can help investors stay grounded rather than being swayed by emotion or market hysteria.
By Dennis D. Coughlin, CFP, AIF Published
-
Yes, the Markets Are Spooked, But You Don't Have to Be
It's human nature for investors to freak out in a downturn. But with a little discipline, you can overcome the urge to sell and stay focused on long-term goals.
By Jimmy Lee, IAR Published
-
Remembering Bogle: A New Standard for Municipal Investing
Improvements in technology, data, systematic trading and risk analytics have led to more successful municipal indexing.
By Paul Malloy Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published
-
Winning Strategies for Financial Advisers as Clients' Lives Evolve
How can the wealth management industry help make life transitions easier for the adviser and the client?
By David Conti, CPRC Published