UiPath Inc.

UiPath reported second-quarter revenue of $410 million, up 13% year over year; normalizing for FX, revenue grew 16%. ARR was $1.938 billion, up 12% year over year, and net new ARR was $37 million. Non-GAAP operating income was $89 million, or a 22% margin, while GAAP operating income was $32 million versus a GAAP operating loss of $20 million a year ago. Gross margin was 82% overall and 90% for software, and non-GAAP adjusted free cash flow was $31 million versus $45 million a year ago. For Q3, the company expects revenue of $440 million to $445 million, ARR of $1.992 billion to $1.997 billion, and non-GAAP operating income of about $100 million. For full-year fiscal 2027, it guided to revenue of $1.789 billion to $1.794 billion, ARR of $2.065 billion to $2.070 billion, non-GAAP operating income of about $445 million, non-GAAP adjusted free cash flow of about $425 million, and non-GAAP gross margin of about 84%.

Daniel Dines framed the quarter as proof that UiPath is becoming the platform for enterprises combining deterministic automation with AI. He emphasized that customers want exactness, governance, and lower cost for repeatable work, while using AI where intelligence adds value, and he repeatedly positioned UiPath as the “harness” or rails around AI. His tone was confident and strategic, with a strong emphasis on product innovation, platform consolidation, and a broader opportunity as enterprises move from point automation to end-to-end orchestration.

Ashim Gupta and Hitesh Ramani focused on execution, margin improvement, and disciplined guidance. Gupta said revenue was $410 million, ARR $1.93 billion, cloud ARR about $1.3 billion, and customers over $1 million in ARR rose 21% to 387; he also noted gross retention of 97% and net retention of 109% (108% adjusted for FX). He highlighted 82% gross margin, $1.4 billion in cash and marketable securities, no debt, $31 million in adjusted free cash flow, and a share repurchase of 2.4 million shares at $9.63. Ramani said the company is guiding prudently in a variable macro environment, with full-year non-GAAP gross margin still expected at about 84% and full-year non-GAAP adjusted free cash flow at about $425 million.

Analysts focused on whether coding agents are improving deployment capacity, how agentic AI will be monetized, whether AI is lifting deal sizes, and how sales execution and NRR are trending. Management said coding agents are still in a proving stage but are already reducing effort by nearly 60% in initial results, and that the main benefit is faster customer time to value rather than just fewer internal FTEs. On monetization, Daniel Dines said pricing is still being tested, including transaction-based pricing, with a likely move toward outcome-based pricing that includes token costs; management also said the platform story is increasing deal sizes and that 18 of the top 20 deals included AI. Questions on federal, testing, and vertical use cases elicited commentary that the Department of War and other public-sector work is building pipeline, while revenue cycle management, financial crimes, office of the CFO, and loan origination are gaining traction.