UiPath (NYSE: PATH) Q2 FY2027: Revenue Hits $410M, GAAP Operating Income Swings Positive

UiPath (NYSE: PATH) reported second quarter fiscal 2027 results for the period ended July 31, 2026, with revenue of $410.3 million rising 13.4% year-over-year and GAAP operating income swinging to $31.6 million from a loss of $20.2 million in the same quarter a year ago. Adjusted EPS of $0.15 matched the Wall Street consensus estimate of $0.15, while revenue exceeded analyst expectations by 3.19%.

Q2 FY2027 Results

• Revenue: $410.3 million, up 13.4% year-over-year from $361.7 million
• ARR: $1.938 billion as of July 31, 2026, up 12% year-over-year; net new ARR of $37 million
• GAAP operating income: $31.6 million, versus a GAAP operating loss of $20.2 million in Q2 FY2026; GAAP operating margin of 7.7%, a 13.3 percentage-point improvement
• Non-GAAP operating income: $89 million; non-GAAP operating margin of 21.7%
• GAAP net income: $36.1 million, compared to $1.6 million in the year-ago quarter
• Non-GAAP adjusted free cash flow: $31 million; cash, equivalents, and marketable securities of $1.405 billion at quarter end
• Dollar-based net retention rate: 109%

What Drove the Results

Adjusted EPS of $0.15 matched the $0.15 consensus exactly. Revenue of $410.3 million beat estimates by 3.19%, with licenses rising to $123.8 million from $112.2 million and subscription services growing to $266.1 million from $238.4 million year-over-year.

The GAAP operating income swing from -$20.2 million to +$31.6 million was driven primarily by meaningful cost reductions across all three operating expense lines: research and development fell $15.0 million (-15.2%) to $83.4 million, general and administrative expenses declined $2.8 million (-5.3%) to $50.1 million, and sales and marketing edged down $1.7 million (-1.0%) to $164.6 million. These reductions more than offset a $14.5 million increase in professional services cost of revenue.

GAAP net income of $36.1 million compared to $1.6 million in Q2 FY2026. The gap between GAAP net income and non-GAAP operating income of $89 million reflects stock-based compensation and related items excluded from the non-GAAP calculation.

Leadership Changes and Forward Guidance

Alongside its financial results, UiPath announced a series of executive changes. Ashim Gupta transitions to focus solely on his role as Chief Operating Officer. Hitesh Ramani, previously Deputy CFO and Chief Accounting Officer since 2021, was promoted to Chief Financial Officer. Brad Brubaker was named Chief Legal and Administrative Officer with expanded oversight. UiPath also appointed Yazdi Bagli, Executive Vice President at Kaiser Permanente, to its Board of Directors.

For Q3 FY2027, UiPath guided revenue to a range of $440 million to $445 million and non-GAAP operating income of approximately $100 million, with ARR expected between $1.992 billion and $1.997 billion as of October 31, 2026. Full-year FY2027 guidance calls for revenue of $1.789 billion to $1.794 billion, ARR of $2.065 billion to $2.070 billion as of January 31, 2027, and non-GAAP operating income of approximately $445 million.

Wall Street View

Analyst sentiment on PATH leans toward neutral, with the current consensus skewed toward Hold ratings. The company's in-line adjusted EPS and modest revenue beat, set against guidance that market reports characterized as soft relative to some expectations, reflect the cautious positioning among analysts covering the stock.

Investor Takeaway

The quarter's clearest positive is structural: UiPath's GAAP operating margin expanded 13.3 percentage points year-over-year, reaching 7.7%, as the company sustained top-line growth while materially reducing operating costs. The ARR dollar-based net retention rate of 109% indicates existing customers are expanding their spend, a signal of platform stickiness. Full-year non-GAAP operating income guidance of approximately $445 million, combined with $1.405 billion in cash and securities, positions the company with financial flexibility as the leadership team completes its transition.