UiPath (PATH) Gears Up for Earnings: Stock Finely Balanced Leading In

UiPath stock (NYSE: PATH) has taken a pullback over the past month, dropping 8.57% ahead of its next earnings report later today, after the market closes. Since the start of the year, PATH has gained 10.6%, and is also 6.84% higher on the past week, putting the stock at rather pivotal point, awaiting direction.

Markets are looking for an EPS of $0.15, on revenue of $392.87million on the quarter. This would reflect a ~10% sales growth, and a more significant jump on the $0.11 earnings per share this time last year.

The company's stock has experienced considerable volatility over the past 52 weeks, ranging from a low of $9.38 to a high of $18.74. Currently, the price hovers below the 50-day Simple Moving Average (SMA) of $14.50 but remains above the 200-day SMA of $12.57, suggesting a mixed near-term technical outlook.

Recent news has been a mixed bag for UiPath. On one hand, the company has strategically positioned itself at the forefront of AI-driven automation through impactful collaborations. These partnerships, including integrations with OpenAI's ChatGPT, Snowflake's Cortex AI, NVIDIA, and Google's Gemini models, aim to transform UiPath's platform from traditional Robotic Process Automation (RPA) to a more sophisticated “agentic” automation, capable of handling complex tasks with AI agents. This strategic pivot has garnered positive investor sentiment, evidenced by a stock surge following the announcements.

On the other hand, CEO Daniel Dines' sale of nearly 30 million Class A shares in October triggered a 4% stock decline, highlighting the market's sensitivity to insider transactions. Concerns over escalating trade tensions with China, exacerbated by President Trump’s remarks, further dampened investor enthusiasm at the time.

UiPath's Q2 fiscal 2025 earnings report, released in September, provided a strong foundation for optimism. The company reported revenue of $361.7 million, a 14.4% year-over-year increase, and Annual Recurring Revenue (ARR) of $1.72 billion, up 11.1%. Adjusted Earnings Per Share (EPS) came in at $0.15, significantly exceeding the forecasted $0.08. The company also raised its full-year revenue guidance, signaling confidence in its future performance.

Adding to the positive narrative, UiPath was recently recognized as a Leader in the Gartner Magic Quadrant for AI-Augmented Software Testing Tools, underscoring its commitment to integrating AI into its offerings and potentially enhancing its market position.

With UiPath's stock in the midst of a short term uptrend, and potentially having found support at $13, bulls will be looking to move up from here. Bears on the other hand will have eyes on a retest of that support if earnings or guidance disappoint. 

There have been 14 upward EPS revisions on the month leading in to the print, with none to the downside.