Takeaways by Saasverse AI
- UiPath | Fiscal Q2 2026 | $362M Revenue | RPA and Agentic Automation Market
- Exceeding Wall Street expectations, ARR reached $1.723B; shares rose 2.8% after-hours.
- Highlights include non-GAAP operating income of $62M, partnerships with Deloitte and HCLTech, and strategic leadership hires.
UiPath, a leading RPA (Robotic Process Automation) company, outperformed expectations in its fiscal Q2 2026 earnings report, posting $362 million in revenue—14% year-over-year growth and surpassing Wall Street’s forecast of $347.4 million. The company’s annual recurring revenue (ARR) climbed 11% to an impressive $1.723 billion. Following the announcement, UiPath’s stock price saw a 2.8% jump in after-hours trading, underscoring investor confidence in the company’s growth trajectory.
The quarter marked a turning point as UiPath transitioned to profitability, achieving adjusted earnings per share (EPS) of $0.15—well above analyst estimates of $0.09. Non-GAAP operating income came in at $62 million, with adjusted free cash flow reaching $45 million. The company also reported a strong financial position, with $1.52 billion in cash and equivalents. Key metrics such as net new ARR of $31 million and a customer net retention rate of 108% reflect UiPath’s ability to expand its footprint among existing clients while attracting new ones.
UiPath’s performance was driven by its innovative agentic automation product line, which combines traditional RPA capabilities with cutting-edge AI technologies. This fusion not only improves automation efficiency but also positions UiPath as a leader in enterprise AI applications. Commenting on the results, UiPath’s founder and CEO Daniel Dines highlighted the transformative impact of their AI-driven solutions, stating, “Our strong Q2 results, with ARR growing 11% year-over-year, reflect our team's focus and the increasing momentum of our agentic capabilities. We continue to empower clients to scale from pilots to full production, aligning agents, robots, and humans to achieve tangible outcomes.”
Notable strategic moves during the quarter included a partnership with Deloitte to modernize ERP systems through SAP S/4HANA migration and a collaboration with HCLTech to accelerate global deployments of intelligent automation. These alliances emphasize UiPath’s commitment to enhancing enterprise automation capabilities through ecosystem partnerships.
Looking ahead, UiPath raised its revenue guidance for fiscal Q3 2026 to $390–395 million, exceeding market expectations of $384.6 million. Full-year revenue guidance was also revised upwards to a range of $1.571–1.576 billion. In addition, the appointment of Michael Atalla, a former executive at F5 and Microsoft, as Chief Marketing Officer signals UiPath’s intent to fortify its global marketing and expansion strategies.
Saasverse Insights
Agentic automation is emerging as a transformative force in enterprise digital transformation, blending AI agents, RPA, and human workflows into cohesive systems. UiPath’s ability to seamlessly integrate these technologies positions it as a key player in shaping the future of enterprise automation. Despite a cautious IT spending environment, UiPath’s robust performance underscores the resilience of demand for automation solutions. Its continued investment in agentic technology and strategic collaborations, such as those with HCLTech and Deloitte, are building formidable competitive advantages. These efforts not only set a benchmark for the automation industry but also offer a glimpse into the next phase of enterprise intelligence.