UiPath Stock Drops 18% After Initial Earnings Boost

UiPath's (PATH) stock dropped by nearly 18% in Friday trading after initially jumping 10% following its Q2 earnings release. Despite beating revenue estimates and raising guidance for fiscal 2027, investors seemed to have been disappointed with the results.

The company reported $410 million in revenue for the quarter, up 13% year-over-year, and met analyst expectations of $0.15 per share on a non-GAAP basis. It was UiPath's fourth straight quarter of GAAP profitability.

Management also raised its full-year fiscal 2027 revenue guidance to a range of $1.789 billion to $1.794 billion, up from the previous estimate. Additionally, annual recurring revenue grew 12% year-over-year to $1.938 billion, with net revenue retention holding steady at 109%.

However, not all analysts were impressed. Canaccord downgraded UiPath to Hold from Buy due to valuation concerns, despite raising its price target to $17.