UiPath Inc. (PATH) just gave investors something to celebrate, posting third-quarter results that sailed past Wall Street's expectations and sending shares soaring more than 21%.
The automation software company reported adjusted earnings of 16 cents per share on Wednesday, edging out the Street's estimate of 15 cents. But the real story was on the revenue side, where UiPath clocked in at $411.11 million—well above the $392.97 million consensus and significantly higher than the $354.65 million the company generated in the same quarter last year.
"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 Daniel Dines, UiPath CEO.
Looking ahead, UiPath guided fourth quarter revenue in the range of $462 million to $467 million, which lines up nicely with analyst expectations of $462.91 million.
The strong performance caught Wall Street's attention. Shares jumped 21.7% to trade at $18.08 on Thursday, and analysts were quick to revise their outlooks upward.
Here's how the analyst community responded:
- Wells Fargo analyst Michael Turrin maintained an Equal-Weight rating but raised his price target from $12 to $14.
- Mizuho analyst Siti Panigrahi kept a Neutral stance while bumping the price target from $14 to $15.
- Canaccord Genuity analyst Kingsley Crane maintained a Buy rating and lifted the price target from $15 to $19.
- Evercore ISI Group analyst Kirk Materne stuck with an In-Line rating but increased the price target from $15 to $17.
- RBC Capital analyst Matthew Hedberg maintained a Sector Perform rating and raised the price target from $14 to $16.
The consistent theme across these revisions? Analysts see more upside potential following the company's execution on enterprise automation adoption.
