AI-focused UiPath jumps on solid beat-and-raise quarter, buyback plan boost

Investing.com -- UiPath reported Thursday second-quarter results that beat Wall Street estimates and the software maker upsized its share buyback program by $500 million.   

UiPath Inc (NYSE:PATH) was up nearly 10% in premarket trading Friday.

UiPath reported adjusted earnings per share of $0.04 on revenue of $316 million. Analysts polled by Investing.com anticipated EPS of $0.03 on revenue of $303.7M.

Annual recurring revenue, or ARR, rose 18% to $1.55B in Q2 from a year earlier.

For Q3, the company forecast revenue in the range of $345M to $350M, in line with estimates of $347.31. 

Looking further ahead, the company forecast full-year 2025 revenue in the range of $1.42B to $1.43B, up from the prior guidance of $1.40B million to $1.41B.

ARR outlook was also raised to the range of $1.665B to $1.67B, up from the previous $1.66B to $1.665B. 

The company also announced that Chief Financial Officer Ashim Gupta would be taking on an expanded role as chief operating officer starting Sept. 5. 

"UiPath posted a solid quarter versus expectations as the company showed signs of stability following a disappointing Q1/25 that included a sizable guide-down across the board," RBC Capital Markets analysts said in a post-earnings note.

Analysts reiterated a Sector Perform rating and the price target of $16 as they "continue to believe PATH is likely to remain range-bound over the medium term and await more signs of stable execution."

Meanwhile, Morgan Stanley assumed research coverage on UiPath stock after the report, with an Equal Weight rating and a price objective of $15. 

The bank noted that UiPath "cleared a lowered bar with a solid beat and raise in Q2."

"The clear mandate is to become the platform for AI-driven automation in a category with emerging alternatives," they highlighted.

Yasin Ebrahim contributed to this report.