Key Highlights

● Second-quarter fiscal 2027 revenue rose 13 per cent year over year to $410.3 million.

● Annualised renewal run-rate reached $1.938 billion, up 12 per cent year over year.

● UiPath swung to GAAP operating income of $31.6 million from a prior-year loss.

● The company repurchased $268.5 million of Class A shares over the first half.

UiPath (NYSE:PATH), whose Class A common stock trades on the New York Stock Exchange under the ticker PATH, reported second-quarter fiscal 2027 results after the close on 3 September 2026, covering the quarter ended 31 July 2026. Revenue was $410.3 million, up 13 per cent from $361.7 million a year earlier. Subscription services revenue was $266.1 million, licences contributed $123.8 million, and professional services and other revenue was $20.3 million. Annualised renewal run-rate, the company's key recurring revenue metric, reached $1.938 billion, up 12 per cent, with net new ARR of $37 million and a dollar-based net retention rate of 109 per cent. In the release, chief executive Daniel Dines said he was pleased with the quarter and described it as demonstrating disciplined execution.

Profitability, cash and capital allocation

UiPath posted GAAP operating income of $31.6 million, against a loss of $20.2 million in the prior-year quarter, and non-GAAP operating income of $89.0 million. Net income was $36.1 million, or $0.07 per share. GAAP gross margin was 80 per cent, and 82 per cent on a non-GAAP basis. Cash flow from operations and non-GAAP adjusted free cash flow were each about $31 million for the quarter, according to the highlights, while the six-month operating cash flow was $162.6 million. Cash, cash equivalents and marketable securities totalled $1.405 billion at the quarter end. Over the six months the company spent $268.5 million repurchasing Class A shares and $149.4 million, net of cash acquired, on business acquisitions, though the release does not name the acquired businesses. UiPath does not pay a dividend, so there is no distribution to assess; shareholder returns have come through buybacks.

Guidance and what it implies

For the third quarter of fiscal 2027, which ends on 31 October 2026, management guided to revenue of $440 million to $445 million, ARR of $1.992 billion to $1.997 billion and non-GAAP operating income of about $100 million. For the full year to 31 January 2027 it guided to revenue of $1.789 billion to $1.794 billion, ARR of $2.065 billion to $2.070 billion and non-GAAP operating income of about $445 million. These are management projections, not reported results. Reaching the full-year ARR range would require a step up in net new ARR, since the second quarter added $37 million. Mr Dines also said that artificial intelligence is expanding what enterprises can automate and raising the need for orchestration and governance, which is the strategic argument for the company's agentic automation platform.

Profitability Returns, Growth Pace in Focus

UiPath's swing back to GAAP operating profit and its improved non-GAAP margins mark a shift from the prior year, even as revenue growth of 13 per cent is more modest than the company's earlier expansion phases. The gap between strong net retention and comparatively thin net new ARR suggests existing customers are still deepening their use of the platform while new business adds more slowly, a dynamic management's full-year guidance implies it expects to close through the back half of the fiscal year.