UiPath (PATH, Financial) is forging ahead in the automation space by deepening its collaboration with Redis. The extended partnership aims to harness Redis's cutting-edge technologies, including its vector database, Semantic Caching, and Semantic Routing, to boost UiPath's Agent Builder. This collaboration is set to streamline the creation, testing, and deployment of agentic automations, enhancing the capability of UiPath agents to interpret user queries effectively.
By integrating Redis technology, UiPath agents can access data more rapidly and deliver more intelligent system responses, benefiting enterprise developers seeking efficient, cost-effective automation solutions. The advanced functionality allows UiPath agents to discern and implement the most suitable Large Language Model (LLM) or provider, tailoring responses to the specific context and objectives of each customer case.
This development marks a significant step forward in optimizing automation processes, offering businesses the tools to implement more intuitive and responsive technological solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for UiPath Inc (PATH, Financial) is $12.15 with a high estimate of $16.12 and a low estimate of $10.00. The average target implies an upside of 11.74% from the current price of $10.87. More detailed estimate data can be found on the UiPath Inc (PATH) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, UiPath Inc's (PATH, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UiPath Inc (PATH, Financial) in one year is $22.52, suggesting a upside of 107.18% from the current price of $10.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UiPath Inc (PATH) Summary page.
PATH Key Business Developments
Release Date: March 12, 2025
- Revenue: $424 million for Q4 2025; $1.43 billion for fiscal year 2025.
- ARR (Annual Recurring Revenue): $1.666 billion, a 14% increase year over year.
- Net New ARR: $60 million for Q4 2025.
- Gross Margin: Overall gross margin at 87%; software gross margin at 91% for Q4 2025.
- Operating Income: GAAP operating income of $34 million for Q4 2025; non-GAAP operating income of $134 million for Q4 2025.
- Non-GAAP Operating Margin: 32% for Q4 2025.
- Free Cash Flow: Non-GAAP adjusted free cash flow of $145 million for Q4 2025; $328 million for fiscal year 2025.
- Cash and Equivalents: $1.7 billion with no debt at the end of fiscal year 2025.
- Share Repurchases: 744,000 shares repurchased in Q4 2025 at an average price of $12.57; $390 million returned to shareholders for the full fiscal year.
- Guidance for Q1 2026: Revenue between $330 million to $335 million; ARR between $1.686 billion to $1.691 billion; non-GAAP operating income of approximately $45 million.
- Guidance for Fiscal Year 2026: Revenue between $1.525 billion to $1.530 billion; ARR between $1.816 billion to $1.821 billion; non-GAAP operating income of approximately $270 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UiPath Inc (PATH, Financial) reported a revenue of $424 million for the fourth quarter, with an ARR of $1.666 billion, marking a 14% year-over-year increase.
- The company has made significant progress in its Agentic platform, with strong customer engagement and approximately 3,000 agents created for mission-critical processes.
- UiPath Inc (PATH) achieved a non-GAAP operating margin of 32% in the fourth quarter, reflecting improved operational efficiency.
- The company ended the year with a robust balance sheet, holding $1.7 billion in cash, cash equivalents, and marketable securities, with no debt.
- UiPath Inc (PATH) has seen healthy adoption of its AI products, with an attach rate of approximately 20% of total customers and over 85% for customers with greater than $1 million in ARR.
Negative Points
- The company faced headwinds from the ongoing geopolitical climate, impacting the timing of deal closures, particularly in the public sector.
- There has been significant volatility in the macroeconomic environment, leading to uncertainty around customer budgets and foreign exchange fluctuations.
- UiPath Inc (PATH) experienced a slight shortfall in ARR expectations for the fourth quarter due to the transition in the government and macroeconomic challenges.
- The company anticipates a 2% headwind to full-year revenue growth due to the shift towards SaaS offerings.
- Despite progress, the public sector transition has created short-term uncertainty for deal closures, affecting the company's guidance for fiscal 2026.
