UiPath Inc. (PATH) had a nice Wednesday evening, with shares jumping nearly 14% in extended trading after the automation software company posted third quarter results that beat Wall Street's expectations across the board.

The Numbers That Matter

UiPath reported adjusted earnings of 16 cents per share, edging past the Street estimate of 15 cents. More impressively, revenue clocked in at $411.11 million, comfortably ahead of the $392.97 million consensus and representing solid growth from the $354.65 million the company brought in during the same period last year.

Under the Hood

The quarterly metrics tell a story of a company finding its footing. Annual recurring revenue reached $1.782 billion as of October 31, 2025, up 11% year-over-year. The company added $59 million in net new ARR during the quarter, while maintaining a dollar-based net retention rate of 107%, which suggests existing customers are sticking around and spending more.

On the profitability front, UiPath posted a non-GAAP gross margin of 85%, non-GAAP operating income of $88 million, and adjusted free cash flow of $28 million.

"I am pleased with our third quarter results delivering ARR of $1.782 billion, up 11 percent year-over-year, a testament to the team's focus, consistent execution, and the momentum we're seeing as customers scale agentic automation across the enterprise," said CEO Daniel Dines.

Looking Ahead

UiPath guided fourth quarter revenue to a range of $462 million to $467 million, slightly above the $462.91 million analyst estimate. It's a modest beat on guidance, but enough to keep the momentum going.

According to market data, UiPath stock surged 13.80% to $16.91 in Wednesday's after-hours trading session.