UiPath (NYSE:PATH | PATH Price Prediction) has quietly become one of the more interesting orphans in enterprise software. The automation pioneer carries a market cap of just $5.3 billion, with shares down 37.8% year to date and off 84.0% over five years. Yet the underlying business is finally working: Q1 FY27 revenue of $418.38 million grew 17.3% year over year, annual recurring revenue (ARR) reached $1.901 billion, and the company posted its first GAAP profitability in company history. Free cash flow hit $352.16 million in FY26, funding $243.8 million in buybacks last quarter alone.
That combination (a depressed multiple, real cash generation, a genuine agentic AI product roadmap, and short interest sitting at 35.6% of float) creates the classic setup for strategic conversations. To be clear, no deal talks have been reported. But as a matter of strategic logic, several enterprise software giants have credible reasons to look. Below, we rank five plausible acquirers from longest shot to cleanest fit.
5. Adobe: The Longest Shot Adobe (NASDAQ:ADBE) has the balance sheet, with an $84.3 billion market cap and AI-first ARR that tripled year over year to surpass $500 million in Q2 FY26. But Adobe’s DNA is creative and marketing workflows, not back-office RPA. CEO Shantanu Narayen just raised full-year guidance, and the Semrush deal already stretched the M&A muscle. Strategic overlap with UiPath’s financial-crime and ERP automation is thin. Fit: weak.
4. Workday: Adjacent, Not Aligned Workday (NASDAQ:WDAY) is pushing hard into agentic AI, with more than 4,000 customers using at least one agentic product and a Recruiting Agent that supported 14 million hires. But Workday sells into HR and finance, not the horizontal automation layer UiPath occupies. A $31.6 billion market cap acquirer buying a $5.3 billion target is doable, yet returning CEO Aneel Bhusri is prioritizing internal AI builds such as Sana. Strategic rationale exists but stops short of compelling.
3. Microsoft: The Sleeping Giant Microsoft (NASDAQ:MSFT) is already UiPath’s partner on Azure AI Foundry and Defender integrations, and its $2.8 trillion market cap makes the price rounding-error territory. Microsoft’s AI business surpassed $37 billion in annual revenue run rate, up 123%, and Copilot needs deterministic execution rails. The knock: antitrust scrutiny post-Activision, and Microsoft prefers building over buying in automation. Powerful strategic case, complicated politics.
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2. Salesforce: The Agentic Consolidator Salesforce (NYSE:CRM) has been the most aggressive AI acquirer, closing Informatica (which contributed $444 million last quarter) and pushing Agentforce ARR to $1.2 billion, up 205% year over year. UiPath’s Maestro Connector already lives on Salesforce AgentExchange. Marc Benioff called agentic AI “the biggest growth opportunity,” and Salesforce’s forward P/E of 13 gives it currency flexibility. The fit is clean, if Benioff can resist his stated aversion to large deals.
1. ServiceNow: The Cleanest Fit ServiceNow (NYSE:NOW) is the most natural home. Bill McDermott’s platform just crossed $1 billion in AI ACV, with agentic deployments up ninefold in nine months and Q2 revenue of $3.99 billion, up 24%. ServiceNow already digested Moveworks and is pitching AI Control Tower as the market standard. Bolting on UiPath’s Maestro orchestration, WorkFusion’s financial-crime agents, and UiPath’s Fortune 500 RPA installed base would extend ServiceNow’s workflow moat directly into the automation execution layer. At $95.1 billion market cap, the deal is digestible, and the product overlap is minimal. This is the acquirer that preserves the most synergy value.
Where Private Equity Fits A sponsor-led take-private is credible. UiPath generates real free cash flow, carries no meaningful debt, and trades at an EV/revenue of 3. The CEO’s recent divorce-settlement share transfer of 9,615,297 shares reduced the founder ownership overhang. Vista, Thoma Bravo, and Silver Lake have all done software LBOs at this profile.
What to Watch UiPath closed at $10.20 on July 23, versus a mean analyst target of $13.25. The setup is speculative, not reported. But with agentic products moving from pilot to production, a Q2 ARR guide of $1.929 billion to $1.934 billion, and analyst consensus stuck on Hold, UiPath fits every profile of a company where strategic conversations tend to happen quietly. Investors should keep an eye on the stock through the August earnings window.
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Announcements from OpenAI and Anthropic continue to wreak havoc on certain sectors of the market, and the latest victim appears to be UiPath (PATH -4.63%), which as of midday Thursday had dropped by almost 15% from its peak over the prior few days. That slump in its stock price appeared to stem from OpenAI launching a new offering this week called OpenAI Presence. That solution is designed to help organizations better deploy AI agents by connecting those agents to the systems that house the organization's data, policies, workflows, guardrails, and existing software.
Presence can handle both real-time voice and chat interactions as well as help automate tasks such as resolving employee IT requests, fixing billing issues, and supporting insurance claims. The solution only gives AI agents access to the information and systems they need to complete their defined jobs, and clients can preset conditions when a person should take over or when human approval for an action is required.
Image source: The Motley Fool.
Software bots still have their uses While that may sound like what UiPath is doing in the robotic process automation and agentic AI arenas, there are some major differences. OpenAI Presence is largely aimed at deploying AI agents for things like customer service, sales, human resources, and IT support. These are all tasks that need probabilistic solutions, which AI handles very well. However, UiPath and its software bots have always been more focused on issues revolving around deterministic behavior. This includes rules-based tasks for things such as data entry or payroll. These are also tasks where management teams may be unwilling to take the risk that an AI hallucination will mess up the results. It's also much cheaper to use software bots than AI agents in cases where software bots can automate a particular task.
UiPath has also developed an agentic AI platform called Maestro, and while Presence could compete against this offering, Maestro has some clear advantages. The first is that it can determine which tasks need AI agents and which can be handled by cheaper software bots, and assign those tasks to the appropriate tools. AI expenses have been on the rise, and organizations are now making an effort to keep them in check. A solution like Maestro can save money while helping organizations manage a growing number of third-party AI agents and making sure they get the most value possible for their spending.
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Another important differentiation is that UiPath's Maestro platform is model-agnostic. Just as enterprises don't want to rely too much on a single vendor, they also don't want to be beholden to an AI model from a single company. Relying on OpenAI Presence is a bet on OpenAI's models, but that adds risk. If an AI model gets pulled (as happened recently with Anthropic's Claude Mythos 5) or a better model comes out, it is safer to have software layers that are separate from AI model vendors.
Overall, the pullback in UiPath stock that was triggered by the launch of OpenAI Presence looks overdone. UiPath could play an important role in the future of enterprise AI agent orchestration, and with the stock trading at a forward P/E ratio of about 13.5 and a price-to-sales (P/S) ratio of just above 3, it's an AI stock worth betting on.
In the latest trading session, UiPath (PATH - Free Report) closed at $10.70, marking a -11.13% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
Prior to today's trading, shares of the enterprise automation software developer had gained 18.5% outpaced the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
The upcoming earnings release of UiPath will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.15, reflecting no change from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $397.59 million, up 9.91% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.8 per share and revenue of $1.78 billion. These totals would mark changes of +11.11% and +10.4%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for UiPath. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. UiPath is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, UiPath currently has a Forward P/E ratio of 15.05. This represents a discount compared to its industry average Forward P/E of 19.55.
We can additionally observe that PATH currently boasts a PEG ratio of 0.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
UiPath (PATH 1.11%), an artificial intelligence (AI) robotic and automation software provider, closed at $12.04, down 0.99%. Recent investment reports that put the spotlight on UiPath's customer demand could have put it in focus, while investors will be watching the next earnings call for guidance and Annual Recurring Revenue (ARR) trends.
Trading volume reached 175.3 million shares, coming in about 235% above its three-month average of 52.3 million shares. UiPath IPO'd in 2021 and has fallen 832 since going public.
How the markets moved todayS&P 500 (^GSPC +0.89%) rose 0.89% to 7,509, and the Nasdaq Composite (^IXIC +1.29%) gained 1.29% to 25,837. Among application software peers focused on enterprise automation, Appian closed at $25.35, down 2.61%, and Pegasystems closed at $30.94, down 2.27%.
What this means for investorsUiPath slipped slightly today, but the increased trading volume suggests the stock is on investor radars. It has gained 17% in the past month as investors begin to re-enter the software-as-a-service sector, thinking this year’s dramatic sell-off could have been overblown. While there was no direct UiPath news, a Zacks report yesterday highlighted continued demand for its services and rising ARR.
UiPath uses AI to automate repetitive tasks, but the risk is that clients will eventually be able to integrate AI-driven automation without needing an intermediary like UiPath to help them. Last week it announced a deal with UK-based online retailer, The Very Group, to provide agentic AI pricing, demonstrating commercial demand. However, it is a competitive and rapidly evolving space, and analysts are concerned that UiPath isn’t growing fast enough.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool recommends Appian. The Motley Fool has a disclosure policy.
Key Takeaways PATH's ARR grew steadily from $1.46 billion in Q4 fiscal 2024 to $1.9 billion by Q1 fiscal 2027.UiPath is witnessing deeper enterprise adoption of AI orchestration and workflow automation.PATH trades at a forward P/E of 14.34X, well below the industry average of 27.64X. UiPath (PATH - Free Report) continues to strengthen its long-term investment case through consistent growth in annualized recurring revenue (ARR), underscoring the resilience of its enterprise automation business and the rising adoption of AI-driven workflow orchestration.
PATH's ARR has expanded steadily from $1.46 billion in the fourth quarter of fiscal 2024 to $1.9 billion by the first quarter of fiscal 2027. This sustained increase highlights continued enterprise demand for the company's automation platform, even as businesses remain cautious about software budgets and the pace of AI monetization. The steady ARR expansion suggests that customers are increasing their long-term commitment to UiPath's platform rather than reducing automation investments.
The consistent growth also reflects UiPath's success in expanding existing customer relationships. As enterprises increasingly deploy AI orchestration capabilities, workflow automation and cloud-based services across broader business functions, the company is generating stronger recurring revenues from its installed base instead of relying primarily on new customer acquisitions. This trend enhances revenue visibility and supports greater long-term financial stability.
The durability of ARR growth is particularly noteworthy amid a challenging enterprise software environment marked by slower IT spending and heightened investor scrutiny of AI-related investments. While near-term revenue growth may remain measured, UiPath's expanding recurring revenue base provides a solid foundation as enterprise AI adoption continues to evolve.
Relevant Industry PeersPegasystems (PEGA - Free Report) remains a key competitor in enterprise workflow automation and AI-powered business process management. Like UiPath, Pegasystems continues to expand its AI capabilities, although its platform places greater emphasis on customer engagement, CRM and decision intelligence alongside process automation.
ServiceNow (NOW - Free Report) is another major competitor benefiting from accelerating enterprise demand for workflow automation and AI integration. While its core strength lies in enterprise service management, ServiceNow continues to expand into intelligent workflow orchestration and AI-enabled automation, making it one of the most formidable competitors in the enterprise automation market.
PATH’s Price Performance, Valuation and EstimatesThe stock has declined 26% year to date compared to the industry’s 7% loss.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 14.34, which is well below the industry average of 27.64. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PATH’s fiscal 2027 earnings has stayed unchanged over the past 30 days.
PATH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UiPath (PATH - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this enterprise automation software developer have returned +18.3% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Internet - Software industry, to which UiPath belongs, has gained 9.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UiPath is expected to post earnings of $0.15 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $0.8 for the current fiscal year indicates a year-over-year change of +11.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +12.7% from what UiPath is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UiPath.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For UiPath, the consensus sales estimate for the current quarter of $397.59 million indicates a year-over-year change of +9.9%. For the current and next fiscal years, $1.78 billion and $1.92 billion estimates indicate +10.4% and +8.2% changes, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Agentic AI could lead to major breakthroughs in productivity and drive the next wave of growth for many companies. Grand View Research forecasts that the enterprise agentic AI market will maintain a 46.2% compound annual growth rate through 2030, reflecting the technology's vast potential.
Two companies are uniquely positioned to capitalize on this opportunity. UiPath (PATH +1.00%) and ServiceNow (NOW 0.59%) both have tools that let companies create and manage AI agents, and both have solid foundations of growing annual recurring revenues.
While both companies have similar opportunities in front of them, if you want to choose just one of them to invest in, here are a few details to consider.
Image source: Getty Images.
ServiceNow has higher annual recurring revenue growth rates Annual recurring revenue is a critical metric for both companies. It indicates baseline growth and suggests how growth may change in the future.
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ServiceNow is the larger company and is also growing faster. The company has $12.64 billion in current remaining performance obligations compared to UiPath's $1.9 billion in annual recurring revenue at the end of its fiscal 2027 first quarter.
ServiceNow is also growing its recurring revenue stream faster. It achieved a 22% year-over-year growth rate for subscription revenue in the first quarter. UiPath only managed a 12% year-over-year growth rate for its subscriptions, but its overall revenue was up by 17%.
Almost 9,000 global customers trust ServiceNow, and that includes 85% of the Fortune 500. Those businesses have more financial flexibility to pay more for ServiceNow plans in the future. UiPath has over 10,000 customers, but ServiceNow can charge a premium for its platform.
For instance, ServiceNow has 630 customers that are spending more than $5 million per year with it, while UiPath only has 374 customers paying more than $1 million per year for its platform.
UiPath has a better shot at boosting margins and improving its valuation Although ServiceNow has a higher revenue growth rate, UiPath is well positioned to boost its margins. When discussing UiPath's fiscal 2027 first-quarter results, CFO Ashim Gupta noted that it was the first time the company had achieved GAAP profitability in a Q1.
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UiPath is now in a position to continue scaling without soaring operating expenses. While costs should continue to rise over time, the company's revenue growth could outpace spending growth in future quarters.
ServiceNow has been profitable for much longer and commands double-digit net profit margins. In its latest quarter, UiPath had a net profit margin just above 5%.
UiPath would have to more than double its profit margin to reach ServiceNow's level. Since these agentic AI platforms have similar client lists and serve similar markets, it is feasible for UiPath to achieve that net profit margin in the future.
ServiceNow has still been growing its top line, but its net income growth has been a bit disappointing in recent quarters. Lower net income growth limits how much more attractive ServiceNow's price-to-earnings (P/E) ratio can become, while UiPath is better positioned to improve its valuation.
The final verdict ServiceNow is growing revenues faster and has customers who are willing to pay more for its offerings. However, UiPath recently hit a profitability milestone and is in a good position to expand its margins. Both companies trade at similar P/E ratios, but UiPath has a better shot at making its valuation more attractive for long-term investors.
If ServiceNow can raise prices higher and get some of its costs under control, it can return to delivering double-digit, year-over-year net income growth. If that happens, the thesis will change significantly and favor ServiceNow.
Investors who are more focused on value may want to take a closer look at UiPath, but both companies are well positioned for the upcoming agentic AI boom.
UiPath (PATH +1.00%), an enterprise automation and robotic software provider, closed at $12.15, up 1.00%. The gains follow a recent retail artificial intelligence (AI) partnership, while broader technology weakness stayed in focus.
Trading volume reached 90.6 million shares, coming in about 86% above its three-month average of 48.7 million shares. UiPath IPO'd in 2021 and has fallen 81% since going public.
How the markets moved todayThe S&P 500 (^GSPC 1.01%) fell 1.01% to 7,458, and the Nasdaq Composite (^IXIC 1.40%) fell 1.40% to 25,520. Among robotic process automation rivals, Appian (APPN 0.42%) closed at $26.11, down 0.38%, while Pegasystems (PEGA 2.31%), which will report Q2 earnings next week, closed at $32.16, down 2.31%.
What this means for investorsUiPath erased some of its losses today, but the stock is still down over 26% year-to-date. It automates common back-office business tasks with AI and robotic technology, but it has struggled alongside other software stocks as investors fear that AI might replace its services altogether.
While the firm’s Q1 revenues increased by 17% year-on-year to $418 million, analysts wanted to see stronger subscription figures to demonstrate sustainable prospective growth. As such, its recent deal with UK online retailer The Very Group, under which UiPath will provide agentic AI pricing solutions, could boost its long-term potential.
The deal is positive, but it is only one step in the right direction. UiPath needs to show it can use AI to deliver the services companies need rather than being replaced by this rapidly evolving technology.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool recommends Appian. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PATH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways PATH is seeing agentic AI move into production while expanding workflow capabilities with Maestro Case.UiPath increased its customers with over $100K ARR to 2,624 and $1M ARR customers to 374.PATH trades at 13.82X forward earnings, below the industry average despite improving fundamentals. UiPath (PATH - Free Report) has experienced a sharp share price correction over the past six months, declining 27% compared with the industry’s 2% decline.
While concerns over AI competition and cautious enterprise spending have weighed on the stock, the company continues to strengthen its financial performance, expand its automation platform and deepen customer adoption. With a more reasonable valuation and growing traction in agentic AI, UiPath appears well-positioned to benefit from the next phase of enterprise automation.
Image Source: Zacks Investment Research
PATH’s Agentic AI Adoption Continues to AccelerateOne of the most encouraging developments for UiPath is the increasing adoption of its agentic AI platform. Roughly one year after making its agentic products generally available, the company is seeing customers move beyond pilot programs into full production deployments.
This transition is significant because production deployments typically indicate that customers are realizing measurable business value and integrating AI capabilities into mission-critical workflows rather than simply experimenting with new technology.
UiPath's role extends beyond simply providing AI agents. Its platform serves as an orchestration layer that coordinates workflows, automates execution and integrates AI-generated outputs directly into enterprise operations. As organizations increasingly deploy AI agents, this orchestration capability becomes increasingly valuable.
The recent introduction of UiPath for Coding Agents further strengthens the company's AI strategy by helping customers accelerate deployments and achieve faster time to value, potentially driving broader platform adoption across enterprise customers.
Maestro Case Broadens PATH’s Enterprise PlatformUiPath recently expanded its automation portfolio with the launch of Maestro Case, a capability designed to help enterprises manage complex, long-running workflows involving multiple participants, business systems and AI agents.
Many organizations still rely on fragmented processes involving emails, spreadsheets, and disconnected software to manage customer requests, approvals, and investigations. Maestro Case addresses these inefficiencies by treating every business case as an evolving workflow while combining automation with human oversight.
The launch appears to expand UiPath's competitive positioning against ServiceNow (NOW - Free Report) and Pegasystems (PEGA - Free Report) . While ServiceNow has built a strong franchise in enterprise workflow management and Pegasystems has long specialized in case management and business process automation, UiPath aims to differentiate itself by integrating robotic process automation, workflow orchestration, and agentic AI within a unified platform. As enterprises increasingly seek AI-enabled workflow solutions, PATH's broader automation capabilities could provide a meaningful competitive advantage over Pegasystems and ServiceNow.
Large Customer Growth Supports Long-Term OutlookUiPath continues to demonstrate strong enterprise adoption, particularly among its largest customers.
Customers generating more than $100,000 in annual recurring revenue increased from 2,365 to 2,624 over the past year, reflecting broader platform adoption and continued expansion within existing enterprise accounts.
Even more encouraging, customers contributing more than $1 million in ARR increased from 316 to 374. These larger customers typically represent deeper deployments, stronger retention and greater long-term expansion opportunities.
The company's expanding enterprise presence also strengthens its competitive position relative to Pegasystems, ServiceNow and Salesforce. While Salesforce continues to invest aggressively in enterprise AI and workflow automation, UiPath is carving out a differentiated position by combining robotic process automation, AI orchestration and workflow management into a single platform. Likewise, Salesforce's broader AI initiatives further validate the growing enterprise demand that UiPath is targeting.
Healthy Growth Projections StrengthenUiPath's long-term growth outlook remains healthy, supported by steady expansion in both earnings and revenues. The Zacks Consensus Estimate projects earnings growth of 10.4% in fiscal 2027, followed by an additional 8.2% increase in fiscal 2028, indicating sustained profitability despite a maturing business. Revenue growth is also expected to remain robust, with sales forecast to rise 11.1% in fiscal 2027 and 12.7% in fiscal 2028. The acceleration in top-line growth during fiscal 2028 suggests continued demand for UiPath's AI-powered automation platform, while consistent earnings expansion reflects improving operating leverage and disciplined execution.
Image Source: Zacks Investment Research
Although risks such as enterprise IT spending uncertainty and intensifying competition remain, much of this caution now appears reflected in the current valuation, creating a more favorable risk-reward profile for patient investors.
Attractive Valuation Creates a Better Entry PointThe recent pullback has compressed its valuation to a forward price-to-earnings multiple of 13.82X, well below the industry average of 28.28X.
Image Source: Zacks Investment Research
The lower valuation comes despite improving business fundamentals. Annualized recurring revenue (ARR) continues to expand steadily, operating margins have improved and UiPath recently reported its first-ever first-quarter GAAP profit. Management also raised its full-year guidance, signaling confidence in customer demand and the company's ability to monetize its expanding AI-powered automation portfolio.
PATH is a Buy NowUiPath's recent share price weakness appears disconnected from its improving operating performance. The company is expanding profitability, growing recurring revenue, strengthening relationships with large enterprise customers, and successfully extending its platform into workflow orchestration and agentic AI.
Although competitive pressures and macroeconomic uncertainty remain important risks, UiPath's discounted valuation, expanding AI capabilities, and growing enterprise adoption suggest the long-term investment thesis remains intact. If management continues executing on its AI roadmap while sustaining profitable growth, the current pullback could prove to be an attractive buying opportunity for long-term investors.
PATH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UiPath (PATH - Free Report) UiPath, Inc. provides an end-to-end enterprise automation platform that combines robotic process automation with AI to help organizations discover, build, and operate software automations at scale. The UiPath Platform enables users to automate tasks across user interfaces, APIs, and documents, and to orchestrate digital workers that collaborate with people. Core capabilities include AI-powered document understanding, low-code design tools, process mining to identify automation opportunities, automated testing, analytics, and centralized governance. The company was first established in Bucharest, Romania in 2005 and incorporated in Delaware in 2015. Its principal executive offices are at One Vanderbilt Avenue, New York, NY.
PATH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. PATH has a Momentum Style Score of A, and shares are up 10.7% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $0.80 per share. PATH also boasts an average earnings surprise of +30.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PATH should be on investors' short list.
UiPath (PATH - Free Report) closed the most recent trading day at $11.68, moving -1.02% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.42%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.29%.
Prior to today's trading, shares of the enterprise automation software developer had gained 10.8% outpaced the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
Investors will be eagerly watching for the performance of UiPath in its upcoming earnings disclosure. In that report, analysts expect UiPath to post earnings of $0.15 per share. This would mark no growth from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $397.59 million, showing a 9.91% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.8 per share and a revenue of $1.78 billion, indicating changes of +11.11% and +10.4%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for UiPath. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 6.13% rise in the Zacks Consensus EPS estimate. UiPath is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 14.75. This indicates a discount in contrast to its industry's Forward P/E of 19.73.
Investors should also note that PATH has a PEG ratio of 0.7 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Key Takeaways UiPath shares have fallen 34% in six months, while trading below the industry's forward earnings multiple.PATH reported its first-quarter GAAP profit and raised its full-year outlook on stronger demand.UiPath is positioning its platform to combine RPA, AI agents and workflows for enterprise automation. UiPath’s (PATH - Free Report) recent share price pullback has made its valuation more compelling, particularly for long-term investors. Despite improving financial performance and stronger demand for its automation platform, the stock trades at a more reasonable forward earnings multiple than it did during its earlier rally. This disconnect suggests that much of the market’s caution surrounding AI-related competition and enterprise spending has already been reflected in the share price.
The stock has declined 34% over the past six months compared with the industry’s 6.5% decline.
< Image Source: Zacks Investment Research
PATH trades at a forward price-to-earnings ratio of 13.53X, which is well below the industry’s average of 27.31X.
Image Source: Zacks Investment Research
The company continues to strengthen its fundamentals. Annualized recurring revenue (ARR) has maintained steady growth, operating margins have expanded, and UiPath recently reported its first-ever first-quarter GAAP profit. Management also raised its full-year outlook, reflecting confidence in customer demand and the company's ability to monetize its AI-powered automation offerings.
As enterprises increasingly adopt agentic AI, UiPath is positioning itself as an orchestration layer that combines robotic process automation (RPA), AI agents, and workflow management. This strategy could help customers automate complex business processes while optimizing AI token usage, creating a differentiated value proposition.
Although risks remain, including competitive pressure and slower enterprise IT spending, the current valuation appears to offer a favorable risk-reward balance. If UiPath continues to execute on its AI roadmap and sustain profitable growth, today's discounted valuation could provide meaningful upside potential for patient, long-term investors.
Peer Comparison
Microsoft (MSFT - Free Report) and ServiceNow (NOW - Free Report) remain formidable rivals, but their financial strategies differ from UiPath’s. Microsoft, while a giant with unparalleled scale, must spread capital across diverse segments such as cloud, gaming and productivity software, somewhat diluting its focus on automation. ServiceNow continues to gain traction in enterprise workflow automation but remains heavily invested in sustaining growth momentum, balancing expansion with cost pressures.
Compared to these players, UiPath’s debt-free balance sheet allows it to dedicate resources squarely to automation. Microsoft has the advantage of size, and ServiceNow has enterprise reach, but UiPath’s singular financial flexibility gives it agility neither can fully replicate.
PATH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UiPath (PATH - Free Report) UiPath, Inc. provides an end-to-end enterprise automation platform that combines robotic process automation with AI to help organizations discover, build, and operate software automations at scale. The UiPath Platform enables users to automate tasks across user interfaces, APIs, and documents, and to orchestrate digital workers that collaborate with people. Core capabilities include AI-powered document understanding, low-code design tools, process mining to identify automation opportunities, automated testing, analytics, and centralized governance. The company was first established in Bucharest, Romania in 2005 and incorporated in Delaware in 2015. Its principal executive offices are at One Vanderbilt Avenue, New York, NY.
PATH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PATH has a Growth Style Score of B, forecasting year-over-year earnings growth of 11.1% for the current fiscal year.
For fiscal 2027, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $0.80 per share. PATH boasts an average earnings surprise of +30.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PATH should be on investors' short list.
UiPath (PATH - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this enterprise automation software developer have returned +4.2%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has lost 3.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, UiPath is expected to post earnings of $0.15 per share, indicating no change. The Zacks Consensus Estimate has changed +9.6% over the last 30 days.
The consensus earnings estimate of $0.8 for the current fiscal year indicates a year-over-year change of +11.1%. This estimate has changed +6.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +12.7% from what UiPath is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UiPath.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of UiPath, the consensus sales estimate of $397.59 million for the current quarter points to a year-over-year change of +9.9%. The $1.78 billion and $1.92 billion estimates for the current and next fiscal years indicate changes of +10.4% and +8.2%, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
UiPath (PATH +1.39%), an agentic automation software platform, closed at $11.69, up 1.21%. The stock was tracking its automation story in premarket trading, and investors are watching the next earnings date as the near-term catalyst.
How the markets moved todayS&P 500 (^GSPC +0.00%) closed at 7,483.24, unchanged from the previous session. The Nasdaq Composite (^IXIC 0.80%) finished at 25,832, down 0.80%. Among enterprise software and business process automation peers, Microsoft (MSFT +1.69%) closed at $390.49, up 1.62%, and Salesforce (CRM +1.65%) ended at $166.11, up 1.76%.
What this means for investorsUiPath’s gain kept investors focused on whether its agentic automation strategy can translate into stronger annual recurring revenue growth, customer expansion, and operating leverage. The company is trying to move beyond traditional robotic process automation and position itself as an orchestration layer for complex enterprise workflows, where AI agents, robots, people, applications, and data can work together inside governed business processes.
The launch of UiPath’s Maestro Case supports its move toward agentic automation. The next earnings update should give investors a clearer read on whether this strategy is supporting durable growth and higher enterprise demand.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Salesforce, and UiPath. The Motley Fool has a disclosure policy.
Key Takeaways PATH introduced Maestro Case to manage long-running, exception-heavy workflows across people, systems and AI.UiPath is targeting fragmented processes like approvals, investigations and service issues.PATH's launch positions it more directly against ServiceNow and Pegasystems in workflow and case management. UiPath (PATH - Free Report) is expanding its automation portfolio with Maestro Case, a new capability designed to help enterprises manage more complex workflows that don’t move in a straight line. The launch reflects a broader shift in enterprise software, where businesses increasingly need tools that can handle not just repetitive tasks, but also long-running, exception-heavy processes involving people, systems and AI.
The opportunity here is meaningful because many organizations still manage customer requests, investigations, approvals, and service issues through fragmented tools such as emails, spreadsheets and point solutions. That creates delays, weak visibility, and inconsistent outcomes. Maestro Case is intended to address that problem by allowing businesses to treat each case as an evolving workflow, carrying its data, participants and execution context from one stage to another while combining automation with human oversight when needed.
The launch also places UiPath more directly alongside peers such as ServiceNow (NOW - Free Report) and Pegasystems (PEGA - Free Report) , both of which have built strong positions in workflow and case-oriented enterprise software. ServiceNow has long focused on digital workflows across IT and business functions, while Pegasystems has built its reputation around process automation and case management for large enterprises. By pushing deeper into this category, UiPath is signaling that it wants to compete more aggressively with ServiceNow in workflow orchestration and with Pegasystems in complex case handling. At the same time, PATH’s AI-led positioning could help it differentiate its offering from ServiceNow and Pegasystems if customers increasingly prioritize agent-driven automation layered on top of traditional workflow tools.
Overall, Maestro Case looks like a strategic extension of UiPath’s platform rather than a routine product add-on, reinforcing its effort to become a broader enterprise orchestration player.
PATH’s Price Performance, Valuation and Estimates
The stock has declined 39% year to date compared with the industry’s 18% loss.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 11.91, which is well below the industry average of 24.48. It carries a Value Score of C.
The Zacks Consensus Estimate for PATH’s fiscal 2027 earnings has been on the rise over the past 30 days.
Image Source: Zacks Investment Research
PATH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways PATH is expanding from robotic process automation into broader AI orchestration and workflow automation.UiPath's AI-focused customers are spending more, supporting deeper enterprise adoption and expansion.PATH looks more attractive as NU faces near-term credit risks tied to Brazil's high-rate environment. Both Nu Holdings (NU - Free Report) and UiPath Inc. (PATH - Free Report) are technology-driven disruptors transforming large industries through software.
UiPath is leveraging AI-powered automation and agentic workflows to streamline enterprise operations, while Nu Holdings is disrupting traditional banking across Latin America with its digital-first financial platform.
PATH’s Case: AI Orchestration, Strong ExpectationsUiPath appears to be evolving beyond its traditional roots in robotic process automation toward a more comprehensive enterprise AI orchestration platform. A major trend emerging across enterprise software is the growing importance of combining AI agents, deterministic automation, governance frameworks, and workflow orchestration into a unified operating layer. UiPath’s positioning within this space could become increasingly valuable as enterprises move from experimental AI initiatives toward full-scale production deployments.
The company’s ability to integrate AI agents, structured automation, and human oversight within a centralized control framework may provide meaningful advantages, particularly in highly regulated industries where reliability, compliance and auditability remain essential. As AI-powered software development accelerates across enterprises, demand for scalable orchestration infrastructure could rise substantially, potentially strengthening UiPath’s long-term strategic relevance in enterprise automation ecosystems.
Momentum surrounding AI product adoption across UiPath’s installed customer base remains encouraging. Customers using AI-focused offerings appear to generate significantly higher spending levels compared with enterprises relying solely on traditional automation products. This suggests AI capabilities are expanding overall platform engagement rather than cannibalizing existing services.
Strong adoption trends among larger enterprise clients also indicate that AI-powered workflows are increasingly becoming embedded within broader operating models. Products such as Maestro, Agent Builder and intelligent document processing solutions highlight how enterprises are gradually shifting from isolated task automation toward full workflow orchestration.
This transition may create stronger expansion opportunities within UiPath’s existing customer base over time. Deep enterprise relationships combined with increasing AI attachment rates could further strengthen recurring revenue durability while supporting larger multi-product deployments.
The Zacks Consensus Estimate for the company’s second-quarter fiscal 2027 earnings currently stands at 15 cents per share, flat with the year-ago actual number. Revenues for the same quarter are expected to reach $397.6 million, indicating 9.9% year-over-year growth.
For the full fiscal year 2027, earnings are projected to increase 11.1%, followed by expected earnings growth of 12.7% in fiscal 2028. Revenues are also forecast to rise 10.4% during fiscal 2027 and 8.2% in fiscal 2028.
While these estimates suggest continued expansion, they also indicate that investors may be looking for stronger acceleration before turning significantly more bullish on the stock.
Image Source: Zacks Investment Research
NU’s Case: Strong Outlook, ROCE, Brazil’s High Interest RatesOne of the strongest positives surrounding NU is the company’s rare balance between rapid growth and reasonable valuation. Thanks to the recent correction, the stock is trading at roughly 12.63X forward earnings compared to the industry’s 10.92X, which still appears relatively inexpensive considering analysts expect revenue growth of 39% and EPS growth of 34% this year. Those growth rates are unusually high for a fintech company that has already achieved substantial scale across Latin America. The stock previously rallied nearly 50% during the second half of 2025 before returning to around the original $12 entry level, creating renewed investor interest. Market sentiment toward NU also remains broadly constructive, with many bullish analysts continuing to view the recent weakness as a temporary valuation reset rather than evidence of a broken long-term business model.
Image Source: Zacks Investment Research
Another major positive surrounding NU is its strong capital efficiency, which continues to stand out within the global banking and fintech industry. The company is currently generating a 13.4% return on invested capital and a 30.9% return on equity, reflecting management’s ability to deploy capital efficiently while continuing to scale operations rapidly across Latin America. These figures remain stronger than those produced by many traditional banking institutions, particularly in a high-interest-rate environment. The metrics also suggest that NU is successfully balancing growth and operational discipline as it expands its customer base and product ecosystem. Strong returns on capital often indicate a durable business model capable of generating meaningful shareholder value over the long term, especially when paired with sustained revenue and earnings growth.
The biggest near-term concern facing NU involves the risk of worsening consumer credit conditions in Brazil. The country’s central bank aggressively raised benchmark interest rates from 10.5% in June 2024 to 14.25% in June this year, then only slightly reduced them to 14.5%. That 375-basis-point tightening cycle has significantly heightened fears of an economic slowdown and consumer financial stress. Investors worry that higher borrowing costs, weaker spending conditions, and rising energy-price uncertainty could eventually trigger a broader deterioration in Brazilian loan books. Although reported delinquency metrics have not yet shown severe damage, analysts remain increasingly cautious because loan stress often appears with a delay after major monetary tightening cycles. Since lending profitability remains central to NU, any meaningful increase in defaults or charge-offs could pressure earnings growth and investor sentiment over the next several quarters.
PATH Looks Like the Better BuyOverall, UiPath appears to be a buy right now. Its expanding role in AI orchestration, growing enterprise adoption of newer AI products and potential to become a more deeply embedded workflow automation platform give it a stronger strategic setup. Nu Holdings remains an attractive long-term fintech story, but its exposure to Brazil’s high-rate credit environment introduces added near-term uncertainty. With a more compelling AI-driven growth narrative, PATH looks like the stock investors may want to buy today.
While PATH carries a Zacks Rank #2 (Buy) and NU carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways PATH customers are increasingly deploying agentic AI in production rather than test environments.UiPath benefits from its role in orchestrating workflows and automating enterprise AI operations.PATH launched UiPath for Coding Agents to speed deployment and accelerate customer value. UiPath (PATH - Free Report) is making meaningful progress in one of the most important areas of enterprise software today: agentic AI adoption. One year after making its agentic products generally available, the company is seeing customers move beyond pilot programs and into production deployments, a key milestone for any emerging technology platform.
The transition from experimentation to production suggests that enterprises are increasingly finding real-world value in UiPath’s AI offerings. Rather than using agentic AI in isolated test environments, customers are beginning to integrate these capabilities into everyday business processes, creating opportunities for broader and deeper platform adoption.
A major reason for this momentum is UiPath’s position as both an orchestration and automation execution platform. As enterprises deploy AI agents, they also need systems that can coordinate workflows, automate actions, and connect AI outputs with business operations. UiPath’s platform is designed to address those requirements, making it a natural component of enterprise AI transformation initiatives.
The recent launch of UiPath for Coding Agents further strengthens the company’s position. By helping customers accelerate deployment and achieve faster time to value, the offering may encourage greater adoption across the broader platform.
For investors, the key takeaway is straightforward: agentic AI is increasingly becoming a real business opportunity rather than a future concept. As customers standardize on UiPath’s platform to support enterprise AI initiatives, the company appears well-positioned to benefit from growing demand for automation, orchestration and AI-powered workflow management.
Peer ComparisonMicrosoft (MSFT - Free Report) and ServiceNow (NOW - Free Report) remain formidable rivals, but their financial strategies differ from UiPath’s. Microsoft, while a giant with unparalleled scale, must spread capital across diverse segments such as cloud, gaming, and productivity software, somewhat diluting its focus on automation. ServiceNow continues to gain traction in enterprise workflow automation but remains heavily invested in sustaining growth momentum, balancing expansion with cost pressures.
Compared to these players, UiPath’s debt-free balance sheet allows it to dedicate resources squarely to automation. Microsoft has the advantage of size, and ServiceNow has enterprise reach, but UiPath’s singular financial flexibility gives it agility neither can fully replicate.
PATH’s Price Performance, Valuation and EstimatesThe stock has declined 17% over the past year compared with the industry’s 16% fall.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 12.31X, which is well below the industry’s average of 26.54X. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PATH’s fiscal 2027 earnings has risen over the past 30 days.
PATH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UiPath (PATH - Free Report) UiPath, Inc. provides an end-to-end enterprise automation platform that combines robotic process automation with AI to help organizations discover, build, and operate software automations at scale. The UiPath Platform enables users to automate tasks across user interfaces, APIs, and documents, and to orchestrate digital workers that collaborate with people. Core capabilities include AI-powered document understanding, low-code design tools, process mining to identify automation opportunities, automated testing, analytics, and centralized governance. The company was first established in Bucharest, Romania in 2005 and incorporated in Delaware in 2015. Its principal executive offices are at One Vanderbilt Avenue, New York, NY.
PATH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PATH has a Growth Style Score of B, forecasting year-over-year earnings growth of 9.7% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $0.79 per share. PATH also boasts an average earnings surprise of +30.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PATH should be on investors' short list.
UiPath (PATH +1.23%), an enterprise automation software provider, closed at $10.15, down 1.07%. UiPath traded lower despite the recent launch of Maestro Case, as investors continued to weigh its agentic automation push against the need for stronger ARR growth.
The company’s trading volume reached 51.8M shares, coming in about 47% above its three-month average of 33.6M shares.
How the markets moved todayThe S&P 500 (^GSPC 1.33%) fell 0.37% to 7,472.79, while the Nasdaq Composite (^IXIC 1.97%) dropped 1.32% to 26,1676.60. Among enterprise software — robotic process automation and workflow automation peers, Pegasystems (PEGA +0.31%) closed at $29.38, down 2.36%, highlighting continued pressure on automation names.
What this means for investorsUiPath shares declined following the launch of Maestro Case, an AI-native tool that coordinates agents, robots, people, applications, and data in complex enterprise workflows. This release strengthens UiPath’s agentic automation offering, particularly for exception-heavy processes like dispute resolution and KYC, where early adopters have reported faster case handling and increased automation rates.
The next key indicator will be whether product momentum appears in recurring growth metrics. While Q1 results showed higher revenue, ARR growth, improved profitability, and stronger cash flow, investors remain focused on whether agentic automation will increase net new ARR, retention, and customer expansion. Upcoming earnings and guidance will indicate if UiPath can combine margin discipline with a stronger growth profile.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.
UiPath (PATH - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this enterprise automation software developer have returned -7%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has lost 4.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UiPath is expected to post earnings of $0.15 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +74.2%.
For the current fiscal year, the consensus earnings estimate of $0.79 points to a change of +9.7% from the prior year. Over the last 30 days, this estimate has changed +18.4%.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +14.3% from what UiPath is expected to report a year ago. Over the past month, the estimate has changed +3.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for UiPath.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For UiPath, the consensus sales estimate for the current quarter of $397.59 million indicates a year-over-year change of +9.9%. For the current and next fiscal years, $1.78 billion and $1.92 billion estimates indicate +10.4% and +8.2% changes, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
New AI-native orchestration capability helps coordinate AI agents, robots, people, applications, and data, across complex, evolving enterprise business processes
NEW YORK--(BUSINESS WIRE)--UiPath, Inc. (NYSE: PATH), a leader in business orchestration and automation, today announced Maestro Case, a new AI-native UiPath agentic case management capability. Available today as part of the UiPath Maestro™ business orchestration capabilities, Maestro Case extends governed orchestration and automation to complex and exception-laden case management, allowing enterprises to manage dynamic, long-running cases with greater visibility, control, and execution speed.
“Modern case management is no longer about tracking work—it’s about orchestrating dynamic complex processes, where exceptions are the norm,” said Raghu Malpani, Chief Technology & Product Officer, UiPath.
ShareIn a recent UiPath survey of nearly 600 C-Suite and IT practitioners at large companies ($1B+ in revenue), 52% reported that the presence of hybrid workflows—a combination of static, repeatable processes and dynamic, context-dependent processes—across their day-to-day operations. Those dynamic processes, such as customer requests, investigations, and approvals, are managed through disconnected emails, spreadsheets, and point solutions, creating delays, inconsistent outcomes, and limited visibility.
Without a coordinated view of a case, with people, systems, data, and AI agents in a single workflow, it becomes difficult to ensure the right actions occur at the right time. Additionally, the valuable context of those actions can be lost as the case moves through teams and the organization, impacting resolution speed, compliance, and transparency, making it harder to scale operations without increasing complexity.
Maestro Case is designed for enterprises living in hybrid environments that need more than orchestrating defined paths. As a new capability with UiPath Maestro, Maestro Case treats the case as a dynamic business entity that carries its data, participants, timeline, and execution context across stages, actors, and systems. Configurable case and stage management agents help move work forward, while robots, AI agents, and people execute tasks within governed workflows. Human review and escalation can be built into the process for exceptions, compliance needs, and decisions requiring judgment. Additionally, as an AI-native offering, Maestro Case is fully supported by any coding agent of choice across every stage of a case, including build, test, debug, deploy, and operate.
“Modern case management is no longer about tracking work—it’s about orchestrating dynamic complex processes, where exceptions are the norm,” said Raghu Malpani, Chief Technology & Product Officer, UiPath. “With Maestro Case, organizations can bring together people, AI agents, systems, and business processes into a single coordinated experience. Teams can resolve complex cases faster, adapt to changing business needs, and deliver the visibility, governance, and agility required in today's enterprise environment.”
Early design adopters are already seeing measurable results, reporting a 60–80% reduction in average case handling time, a three-to-five times increase in cases resolved without human intervention, and SLA compliance improvements of more than 25 percentage points. One financial services adopter projects more than $12 million in annual savings from leveraging Maestro Case to automate dispute resolution and KYC case workflows.
Maestro Case is available today as part of the Maestro business orchestration product set; for more information, click here.
About UiPath
UiPath (NYSE: PATH) is a leader in business orchestration and automation, trusted by organizations worldwide to transform enterprise complexity into intelligent, secure operations where AI agents reason, robots act, and people lead. Built for the modern enterprise and the world's most regulated industries, UiPath integrates automation, orchestration, AI, and testing into governed, scalable workflows—unlocking innovation at the speed of business while delivering the controls and compliance enterprise leaders demand. Visit www.uipath.com for more information.
Shares of UiPath (PATH - Free Report) have gained 2.7% over the past four weeks to close the last trading session at $10.55, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $13.21 indicates a potential upside of 25.2%.
The mean estimate comprises 14 short-term price targets with a standard deviation of $1.12. While the lowest estimate of $12.00 indicates a 13.7% increase from the current price level, the most optimistic analyst expects the stock to surge 42.2% to reach $15.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in PATH. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PATHThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, four estimates have moved higher over the last 30 days while two have gone lower. As a result, the Zacks Consensus Estimate has increased 18.4%.
Moreover, PATH currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PATH could gain, the direction of price movement it implies does appear to be a good guide.
UiPath (PATH - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this enterprise automation software developer have returned +9.8%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has gained 4.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
UiPath is expected to post earnings of $0.14 per share for the current quarter, representing a year-over-year change of -6.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +13.6%.
The consensus earnings estimate of $0.78 for the current fiscal year indicates a year-over-year change of +8.3%. This estimate has changed -1.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.87 indicates a change of +12.3% from what UiPath is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for UiPath.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of UiPath, the consensus sales estimate of $397.5 million for the current quarter points to a year-over-year change of +9.9%. The $1.76 billion and $1.9 billion estimates for the current and next fiscal years indicate changes of +9% and +8.3%, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
UiPath (PATH 0.94%), an automation platform offering robotic process automation solutions, closed Monday’s session at $13.1, up 11.77%. The stock moved higher after investors reacted to fiscal Q1 2027 results that showed 17% revenue growth, the company’s positive GAAP operating income, and raised guidance. Investors are watching how improved profitability will supports its AI automation strategy.
The company’s trading volume reached 65.5 million shares, coming in about 93% above compared with its three-month average of 34 million shares. UiPath IPO'd in 2021 and has fallen 81% since going public.
How the markets moved todayS&P 500 (^GSPC +0.50%) added 0.27% to finish near 7,599.96, while the Nasdaq Composite (^IXIC +0.31%) climbed 0.42% to close around 27,086.81. Among software - infrastructure names, industry peers Microsoft (MSFT +0.11%) closed at $460.52 (+2.28%) and Oracle (ORCL 0.05%) finished at $248.15 (+9.91%), underscoring continued enthusiasm for large-scale AI and cloud infrastructure spending.
What this means for investorsUiPath shares increased following fiscal first-quarter results that demonstrated stronger revenue growth and improved profitability. The company reported $418 million in revenue, a 17% year-over-year increase, and annual recurring revenue of $1.901 billion, up 12%. UiPath also achieved positive GAAP operating income of $28 million and non-GAAP operating income of $92 million, which provided investors with clearer evidence that revenue growth is translating into operating leverage.
The higher fiscal 2027 outlook shifted the market’s attention beyond a single strong quarter, though analysts remain cautious. Bank of America raised its price target to $13 from $12 but maintained an Underperform rating, indicating UiPath must continue to deliver recurring revenue growth following a prolonged post-IPO decline. Investors will be closely monitoring ARR growth, agentic automation adoption, and cost discipline to ensure they can continue to support the company’s operating income and free cash flow.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Oracle, and UiPath. The Motley Fool has a disclosure policy.
UiPath (PATH 0.94%) is working to convince investors about its staying power.
*Stock prices used were the afternoon prices of May 31, 2026. The video was published on June 2, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
UiPath’s Automation Cloud UAE Region Certified Under the DESC Cloud Service Provider Security Standard, Enabling Secure Agentic Automation Across Dubai’s Public and Private Sectors
DUBAI, United Arab Emirates--(BUSINESS WIRE)--UiPath (NYSE: PATH), a leader in business orchestration and automation, today announced it has achieved certification under the Dubai Electronic Security Center (DESC) Cloud Service Provider (CSP) Security Standard for its Automation Cloud Commercial UAE region. This milestone certifies the UiPath suite of automation and AI services against the highest cybersecurity standards mandated by the Emirate of Dubai, opening the full scope of UAE government and semi-government entities as eligible customers and reinforcing the commitment of UiPath to building trust-first, enterprise-grade automation infrastructure across the region.
The DESC, operating under the Digital Dubai Authority, serves as the primary regulatory authority for cybersecurity and digital infrastructure protection in Dubai. Its CSP Security Standard is grounded in international frameworks including ISO 27001, with additional controls designed specifically for the UAE’s regulatory and data sovereignty requirements. Under Dubai law, government and semi-government organizations are prohibited from engaging cloud service providers that have not achieved DESC certification, making this designation not just a competitive differentiator, but a mandatory prerequisite for any cloud provider seeking to serve the public sector.
With this certification in place, UiPath becomes an eligible automation platform for Tier 1 enterprises and government entities across the UAE, enabling them to deploy agentic automation at scale with the confidence that their data handling, identity management, encryption, and business continuity protocols meet the most stringent local standards. For organizations that have previously been unable to deploy UiPath’s cloud services due to regulatory constraints, this certification removes that barrier entirely. The DESC certification covers the full breadth of automation and AI capabilities in the UiPath platform. This comprehensive scope ensures that UAE government and enterprise customers can leverage the end-to-end agentic automation capabilities of the UiPath platform—from intelligent document processing and AI-powered decision-making to orchestration, testing, and citizen development—all within a fully certified, compliant cloud environment.
“Security and trust are the foundation upon which every enterprise automation program must be built,” said Scott Roberts, Chief Information Security Officer, UiPath. “Nowhere is that truer than in regulated markets like the UAE, where the stakes for data sovereignty and compliance are exceptionally high. Achieving DESC certification is a direct reflection of the rigorous security standards to which we hold ourselves at UiPath. It sends a clear message to our customers across Dubai and the broader UAE that your data is protected, your compliance obligations are met, and your organization can move forward with confidence. We are proud to be a certified partner in Dubai’s vision for a secure, AI-powered digital future.”
For more information about UiPath's security and compliance certifications, visit the UiPath Trust Center at www.uipath.com/legal/trust-and-security.
About UiPath
UiPath (NYSE: PATH) is a leader in agentic business orchestration and automation, trusted by organizations worldwide to transform enterprise complexity into intelligent, secure operations where AI agents reason, robots act, and people lead. Built for the modern enterprise and the world's most regulated industries, UiPath integrates automation, orchestration, AI, and testing into governed, scalable workflows—unlocking innovation at the speed of business while delivering the controls and compliance enterprise leaders demand. Visit www.uipath.com for more information.
UiPath Achieves Dubai Electronic Security Center (DESC) Certification, Enabling Public and Private Organizations to Adopt Agentic Capabilities with Confidence UiPath (NYSE: PATH), a leader in business orchestration and automation, today announced it has achieved certification under the Dubai Electronic Security Center (DESC) Cloud Service Provider (CSP) Security Standard for its Automation Cloud Commercial UAE region. This milestone certifies the UiPath suite of automation and AI services against the highest cybersecurity standards mandated by the Emirate of Dubai, opening the full scope of UAE government and semi-government entities as eligible customers and reinforcing the commitment of UiPath to building trust-first, enterprise-grade automation infrastructure across the region.
The DESC, operating under the Digital Dubai Authority, serves as the primary regulatory authority for cybersecurity and digital infrastructure protection in Dubai. Its CSP Security Standard is grounded in international frameworks including ISO 27001, with additional controls designed specifically for the UAE’s regulatory and data sovereignty requirements. Under Dubai law, government and semi-government organizations are prohibited from engaging cloud service providers that have not achieved DESC certification, making this designation not just a competitive differentiator, but a mandatory prerequisite for any cloud provider seeking to serve the public sector.
With this certification in place, UiPath becomes an eligible automation platform for Tier 1 enterprises and government entities across the UAE, enabling them to deploy agentic automation at scale with the confidence that their data handling, identity management, encryption, and business continuity protocols meet the most stringent local standards. For organizations that have previously been unable to deploy UiPath’s cloud services due to regulatory constraints, this certification removes that barrier entirely. The DESC certification covers the full breadth of automation and AI capabilities in the UiPath platform. This comprehensive scope ensures that UAE government and enterprise customers can leverage the end-to-end agentic automation capabilities of the UiPath platform—from intelligent document processing and AI-powered decision-making to orchestration, testing, and citizen development—all within a fully certified, compliant cloud environment.
“Security and trust are the foundation upon which every enterprise automation program must be built,” said Scott Roberts, Chief Information Security Officer, UiPath. “Nowhere is that truer than in regulated markets like the UAE, where the stakes for data sovereignty and compliance are exceptionally high. Achieving DESC certification is a direct reflection of the rigorous security standards to which we hold ourselves at UiPath. It sends a clear message to our customers across Dubai and the broader UAE that your data is protected, your compliance obligations are met, and your organization can move forward with confidence. We are proud to be a certified partner in Dubai’s vision for a secure, AI-powered digital future.”
For more information about UiPath's security and compliance certifications, visit the UiPath Trust Center at www.uipath.com/legal/trust-and-security.
About UiPath
UiPath (NYSE: PATH) is a leader in agentic business orchestration and automation, trusted by organizations worldwide to transform enterprise complexity into intelligent, secure operations where AI agents reason, robots act, and people lead. Built for the modern enterprise and the world's most regulated industries, UiPath integrates automation, orchestration, AI, and testing into governed, scalable workflows—unlocking innovation at the speed of business while delivering the controls and compliance enterprise leaders demand. Visit www.uipath.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260603281113/en/
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UiPath (PATH - Free Report) UiPath, Inc. provides an end-to-end enterprise automation platform that combines robotic process automation with AI to help organizations discover, build, and operate software automations at scale. The UiPath Platform enables users to automate tasks across user interfaces, APIs, and documents, and to orchestrate digital workers that collaborate with people. Core capabilities include AI-powered document understanding, low-code design tools, process mining to identify automation opportunities, automated testing, analytics, and centralized governance. The company was first established in Bucharest, Romania in 2005 and incorporated in Delaware in 2015. Its principal executive offices are at One Vanderbilt Avenue, New York, NY.
PATH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. PATH has a Growth Style Score of B, forecasting year-over-year earnings growth of 8.3% for the current fiscal year.
For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $0.78 per share. PATH boasts an average earnings surprise of +30.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, PATH should be on investors' short list.
UiPath's (PATH 0.94%) stock remains beaten down, trading more than 25% below its level at the start of the year. While the company has shown some signs of life, it has been caught in the software-as-a-service (SaaS) sell-off. UiPath is a company that specializes in automation using software bots and orchestration software for agentic AI.
The company recently reported solid fiscal first-quarter results, but the question is whether this can help the company get out of its doldrums. Let's take a closer look.
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Momentum continues to build UiPath saw some solid, albeit still muted, momentum in its first quarter. AI agentic orchestration remains a top priority, and AI products were included in 16 of its 20 largest deals in the quarter. Meanwhile, AI deals were six times larger, on average, than non-AI deals.
The company continues to do well within its existing customer base, with the company reporting a 109% dollar-based net retention rate over the past 12 months. That was an uptick from the 107% it reported in Q4. Any number over 100% indicates that existing customers are growing after a period of churn. New annual recurring revenue (ARR), meanwhile, came in at $49 million.
Overall revenue for the quarter climbed by 17% to $418.4 million, well above its guidance for revenue of $395 million to $400 million. Its ARR rose by 12% year over year to $1.9 billion. Adjusted earnings per share (EPS) jumped by 36% to $0.15.
Looking ahead, UiPath guided for second-quarter revenue in the range of $395 million to $400 million, representing 9% to 11% growth. It guided for ARR between $1.929 billion and $1.934 billion.
For the full year, it upped its revenue forecast to be between $1.776 billion and $1.781 billion and its ARR forecast to be between $2.058 billion and $2.063 billion. That's up from a prior outlook of revenue of $1.754 billion to $1.759 billion, with ARR of between $2.051 billion and $2.056 billion.
Image source: Getty Images.
While UiPath turned in a solid quarter, it issued conservative Q2 guidance, in part due to some currency headwinds. While the stock is cheap, trading at a forward price-to-sales ratio of 3.5 and a forward P/E of around 14.5, the company needs to see more meaningful ARR growth acceleration for the stock to really work from here.
Agentic AI is still in the very early stages of taking off, and, based on commentary from the AI infrastructure names, this is a real, emerging trend. UiPath's Maestro platform has a big opportunity to be an important AI orchestration tool, and it's already integrated with major platforms such as Alphabet's Google Cloud, Microsoft, and Salesforce. Meanwhile, it's also enabled its platform to handle coding agents, helping provide governance orchestration.
This is a big potential growth driver, but UiPath is not the only player chasing this opportunity, and there is no guarantee it will get its fair share of this emerging market. The stock is speculative, but its low valuation makes it an interesting investment.
Geoffrey Seiler has positions in Alphabet, Salesforce, and UiPath. The Motley Fool has positions in and recommends Alphabet, Microsoft, Salesforce, and UiPath. The Motley Fool has a disclosure policy.
AI-powered orchestration enables one of ANZ’s leading telcos to dramatically reduce complexity and accelerate service delivery for enterprise customers
AUCKLAND, New Zealand--(BUSINESS WIRE)--UiPath (NYSE: PATH), a global leader in business orchestration and automation, today announced that One NZ has set a new benchmark for enterprise service delivery across ANZ using UiPath Maestro™— a cloud-native orchestration platform unifying automation, AI agents, and human interaction into streamlined, end-to-end business processes—to cut mobile provisioning times from ten days to under ten minutes.
"As AI adoption grows, the leading companies won't be those with the newest tech stacks—they'll be the organizations that move fastest with the technology they already have," said Ashley Boag, Chief Operating Officer, International Region, UiPath.
Share Implemented in just five weeks, the deployment proves that AI orchestration can transform legacy-heavy operations at scale without a costly infrastructure overhaul and signals a new standard for how telcos can deliver for enterprise customers.
One NZ set out to transform one of their most complex back-office workflows: enterprise mobile provisioning, built across multiple disconnected systems. Enterprise mobile provisioning spanned Salesforce, Oracle, and internal platforms, with fragmented handoffs and dependence on offshore intervention stretching order cycles to four or five days. Manual processes introduced delays, limiting visibility across the customer order journey, and creating compounding operational complexity that demanded a fundamentally different approach.
Rather than replacing an existing infrastructure for this workflow, One NZ selected UiPath Maestro to create a modern orchestration layer connecting those disconnected systems. AI agents now coordinate tasks across systems while software robots execute processes within applications, enabling near real-time provisioning for enterprise customers and significantly reducing operational complexity. The solution also delivers real-time visibility and control across legacy environments, enabling faster issue resolution, sharper frontline training, and a process that scales with significantly less operational effort.
“One NZ is pursuing an ambitious goal to become the most AI-enabled telco on the planet by using AI and automation to improve customer experiences, increase operational agility, and empower employees,” said Summer Collins, Chief AI and Business Services Director, One NZ.
“AI creates a connected intelligence layer across our business, enabling us to automate across our technology landscape and continuously improve how we serve our customers while maintaining the security, resilience, and scale our organization depends on. Our approach is AI-first, but human where it matters most. By embedding AI into the way we work, we can transform our organisation, increase efficiency, and unlock new opportunities, while giving our people more time to focus on the human moments that create the greatest value for our customers and communities,” Collins added.
“One NZ clearly demonstrates how complex enterprises are built on a combination of modern and legacy technology. UiPath Maestro is the orchestration layer that brings it all together, accelerating transformation without the complexity and pain of ripping out what is working for them or forcibly modernizing what is already there. One NZ’s focus on transformation reflects a broader shift across the telecommunications sector and other sectors. As AI adoption grows, the leading companies won't be those with the newest tech stacks—they'll be the organizations that move fastest with the technology they already have. One NZ is demonstrating what that looks like in practice, orchestrating end-to-end processes to deliver AI-driven outcomes at enterprise scale while keeping people at the center,” said Ashley Boag, Chief Operating Officer, International Region, UiPath.
Building on this deployment, One NZ is extending UiPath Maestro into additional business-critical areas — including finance, risk, fraud, and complex IT programs, as well as broader customer and operational workflows.
The momentum reflects a wider shift taking hold across the telecommunications sector: providers are moving beyond automating individual tasks to orchestrating entire business processes end-to-end, and UiPath Maestro is emerging as the platform layer that makes that transformation both practical and repeatable.
About UiPath
UiPath (NYSE: PATH) is a leader in agentic business orchestration and automation, trusted by organizations worldwide to transform enterprise complexity into intelligent, secure operations where AI agents reason, robots act, and people lead. Built for the modern enterprise and the world's most regulated industries, UiPath integrates automation, orchestration, AI, and testing into governed, scalable workflows—unlocking innovation at the speed of business while delivering the controls and compliance enterprise leaders demand. Visit www.uipath.com for more information.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UiPath (PATH - Free Report) UiPath, Inc. provides an end-to-end enterprise automation platform that combines robotic process automation with AI to help organizations discover, build, and operate software automations at scale. The UiPath Platform enables users to automate tasks across user interfaces, APIs, and documents, and to orchestrate digital workers that collaborate with people. Core capabilities include AI-powered document understanding, low-code design tools, process mining to identify automation opportunities, automated testing, analytics, and centralized governance. The company was first established in Bucharest, Romania in 2005 and incorporated in Delaware in 2015. Its principal executive offices are at One Vanderbilt Avenue, New York, NY.
PATH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. PATH has a Momentum Style Score of A, and shares are up 4.2% over the past four weeks.
For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $0.78 per share. PATH boasts an average earnings surprise of +30.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PATH should be on investors' short list.
UiPath demonstrates resilient revenue growth and significant margin expansion, despite lacking clear agentic AI leadership. PATH's net cash balance sheet and low 3.3x sales multiple provide strong financial and valuation support. Management guides for 12.2% YoY ARR growth next quarter, with AI-related expansion deals significantly larger than non-AI deals.
Investors might want to bet on UiPath (PATH - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this enterprise automation software developer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For UiPath, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $0.15 per share for the current quarter, which represents a year-over-year change of 0.0%.
The Zacks Consensus Estimate for UiPath has increased 74.24% over the last 30 days, as three estimates have gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $0.79 per share, representing a year-over-year change of +9.7%.
The revisions trend for the current year also appears quite promising for UiPath, with four estimates moving higher over the past month compared to two negative revisions. The consensus estimate has also received a boost over this time frame, increasing 18.42%.
Favorable Zacks RankThanks to promising estimate revisions, UiPath currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on UiPath because of its solid estimate revisions, as evident from the stock's 7.4% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
PATH's term licensing/per-seat SaaS model avoids unpredictable AI token costs while providing deterministic orchestration that complements the growing Agentic AI use. Combined with the expanded ecosystem partnership and the forward-deployed engineering program, it is unsurprising that the company has reported accelerated backlog growth. FQ1'27 brings forth PATH's ARR growth to $1.9B (+12.2% YoY), expanded operating margins to 22%, and first-ever Q1 GAAP profitability, with it supporting the raised FY2027 guidance.
Key Takeaways PATH grew customers with over $100K ARR to 2,624 from 2,365 a year earlier.UiPath increased customers, generating more than $1M in ARR from 316 to 374.PATH trades at 13.12X forward earnings versus the industry average of 26.27. UiPath (PATH - Free Report) continues demonstrating encouraging enterprise adoption trends, with recent customer metrics highlighting the growing strategic importance of its automation and AI platform among large organizations.
The company reported a notable increase in customers generating more than $100,000 in annual recurring revenue (ARR), rising from 2,365 in the year-ago period to 2,624. This growth suggests UiPath is successfully expanding relationships with existing customers while attracting larger enterprises that are increasingly investing in automation, process orchestration, and AI-driven productivity initiatives.
Perhaps more importantly, UiPath's presence among its largest customers continues to strengthen. Customers generating more than $1 million in ARR increased from 316 to 374 over the same period. This segment is particularly significant because it reflects deeper platform adoption, broader deployment across business functions, and stronger long-term revenue visibility.
The accelerating growth in million-dollar customers indicates that automation is increasingly becoming a boardroom and C-suite priority rather than a departmental technology initiative. As enterprises pursue efficiency gains, cost optimization and AI transformation strategies, UiPath appears to be benefiting from larger and more strategic spending commitments.
These customer trends also support the view that UiPath's platform is evolving beyond traditional robotic process automation into a broader enterprise automation ecosystem. Higher-value customers typically exhibit lower churn rates, greater expansion opportunities, and stronger lifetime value, all of which can contribute to durable revenue growth over time.
While macroeconomic uncertainty remains a consideration, the continued expansion of UiPath's large customer base provides evidence that demand for enterprise automation and AI-powered workflow solutions remains healthy, reinforcing confidence in the company's long-term growth trajectory.
Relevant Industry PeersPegasystems (PEGA - Free Report) remains a significant competitor in enterprise workflow automation and AI-enabled business process management. Like UiPath, Pegasystems continues investing heavily in AI-powered enterprise workflow solutions and customer engagement automation. However, Pegasystems maintains a stronger focus on customer relationship and decision-management platforms alongside automation services.
ServiceNow (NOW - Free Report) is another important player benefiting from enterprise demand for workflow automation and AI integration. While ServiceNow primarily focuses on enterprise service management, the company increasingly overlaps with UiPath in intelligent workflow orchestration and AI-enabled automation. The scale and ecosystem strength of ServiceNow continue to make it a major competitive force within the broader enterprise automation landscape.
PATH’s Price Performance, Valuation and EstimatesThe stock has declined 34% year to date compared to the industry’s 13% loss.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 13.12, which is well below the industry average of 26.27. It carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PATH’s fiscal 2027 earnings has been on the rise over the past 30 days.
Image Source: Zacks Investment Research
PATH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UiPath (PATH - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this enterprise automation software developer have returned +10.1%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Internet - Software industry, which UiPath falls in, has gained 0.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UiPath is expected to post earnings of $0.15 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +74.2%.
The consensus earnings estimate of $0.79 for the current fiscal year indicates a year-over-year change of +9.7%. This estimate has changed +18.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.9 indicates a change of +14.3% from what UiPath is expected to report a year ago. Over the past month, the estimate has changed +3.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, UiPath is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For UiPath, the consensus sales estimate for the current quarter of $397.59 million indicates a year-over-year change of +9.9%. For the current and next fiscal years, $1.78 billion and $1.92 billion estimates indicate +10.4% and +8.2% changes, respectively.
Last Reported Results and Surprise HistoryUiPath reported revenues of $418.38 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of $0.15 for the same period compares with $0.11 a year ago.
Compared to the Zacks Consensus Estimate of $397.43 million, the reported revenues represent a surprise of +5.27%. The EPS surprise was 0%.
Over the last four quarters, UiPath surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UiPath is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UiPath. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
