UiPath Inc. (NYSE: PATH), a prominent player in the AI-powered automation space, finds itself at a critical juncture as it approaches its next earnings report this afternoon. The stock price of $10.56, down 2.9% in the session, reflects market apprehension amid a complex landscape of leadership transitions, fluctuating financial performance, and evolving market expectations.
Analysts are anticipating an earnings per share (EPS) of $0.08 for the upcoming report with a revenue estimate of $347.34M.
In the previous quarter, UiPath exceeded expectations by reporting an EPS of $0.11, surpassing the consensus estimate of $0.102. Whether UiPath can repeat this performance remains to be seen, but the market's reaction will likely be amplified given recent events.
The company's Q4 fiscal 2025 earnings, released in March 2025, presented a mixed picture. While UiPath reported an EPS of $0.26, surpassing analyst estimates of $0.20 by a significant margin, revenue fell slightly short of expectations, reaching $424 million compared to the consensus forecast of $425 million.
More concerning, the company's guidance for fiscal 2026 was viewed as overly cautious, projecting revenue between $1.525 billion and $1.530 billion, below analyst expectations of $1.585 billion. This cautious outlook led to a 16% drop in the stock price.
These events highlight a recurring theme: UiPath consistently outperforms on earnings but struggles to provide a compelling growth narrative that satisfies market expectations. This disconnect has created a sense of unease among the markets.
UiPath's stock has fallen 18.3% YTD, drastically underperforming broader markets as bulls continually struggle to find a meaningful catalyst for sentiment to shift. Since the public listing, less than 5 years ago, PATH has fallen 85.90%, yet continues to hold a market cap of $5.65billion.
Implied volatility in the stock of 12% this week suggests there could be a meaningful move, one way or another.
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