Summary
UiPath closed fiscal 2026 with a stronger fourth quarter. Revenue for the quarter ended January 31, 2026 was $481.1 million, up 13.6% from the prior-year quarter. Gross profit was $407.17 million, up 13.4%. GAAP operating income reached $80.29 million, up 138.9%. GAAP net income was $104.46 million, up 101.7%. Gross margin was 84.6%, down 0.1 percentage points from the prior-year quarter, while operating margin was 16.7%, up 8.8 percentage points. The quarter showed leverage on both the gross profit and operating lines, even as gross margin slipped slightly.
The top line grew faster than deferred revenue. Deferred revenue was $707.30 million, flat compared with the prior-year quarter. Remaining performance obligations were $1.47 billion, up 18.7%. Operating cash flow for the quarter was $182.35 million, up 24.8%. Capital expenditures were $3.05 million, down 58.7%. Full-year operating cash flow was $371.21 million, up 15.8%, and full-year capital expenditures were $19.05 million, up 27.6%. The company reported non-GAAP adjusted free cash flow of $182 million for the quarter and $372 million for the full year, which is a different measure from operating cash flow.
Full-year revenue was $1.61 billion, up 12.7%. Full-year gross profit was $1.34 billion, up 13.3%. GAAP operating income was $56.76 million, a swing to a profit from a loss in the prior year. GAAP net income was $282.33 million, also a swing to a profit. Diluted EPS was $0.52, compared with a loss per share a year earlier. Full-year gross margin was 83.2%, up 0.4 percentage points, and full-year operating margin was 3.5%, up 14.9 percentage points. This was the first full year of GAAP profitability in company history, according to management.
ARR was $1.853 billion as of January 31, 2026, up 11% year over year. Net new ARR was $70 million for the quarter and $186 million for the full year. The dollar-based net retention rate was 107%, compared with 110% a year earlier. About 32% of ARR growth came from new customers and 68% came from existing customers. Customers with ARR of at least $1 million numbered 357, up from 317. Customers with ARR of at least $100 thousand numbered 2,565, up from 2,292. Non-GAAP operating income was $150 million for the quarter and $370 million for the full year. Non-GAAP gross margin was 86% for the quarter and 85% for the full year. Cash, cash equivalents, and marketable securities were $1.69 billion as of January 31, 2026.
Guidance for the first quarter of fiscal 2027 includes ARR of $1.894 billion to $1.899 billion as of April 30, 2026 and non-GAAP operating income of approximately $80 million. For the full fiscal year 2027, the company guides to ARR of $2.051 billion to $2.056 billion as of January 31, 2027 and non-GAAP operating income of approximately $415 million. The company states that a reconciliation of the non-GAAP operating income guidance to the most directly comparable GAAP measure is not available without unreasonable efforts because of the variability of stock-based compensation. The company also completed its $1 billion stock repurchase program and authorized a new $500 million program.
Operationally, UiPath launched agentic AI solutions for healthcare providers and payers, announced the acquisition of WorkFusion for financial crime compliance, joined the Veeva AI Partner Program, and integrated with Talkdesk. It was named a Leader in The Forrester Wave Autonomous Testing Platforms, Q4 2025, and received recognition in G2's 2026 Best Software Awards. Its Screen Agent received a top ranking on the OSWorld-Verified benchmark, and the company achieved AIUC-1 certification.
Management's risk disclosure points to macroeconomic uncertainty, geopolitical relationships, inflation and interest rates, monetary and trade policy changes, government efficiency initiatives, and foreign currency fluctuations. Other named risks include competition, new disruptive technologies, reliance on third-party cloud infrastructure, the ability to attract and retain key personnel, seasonality in bookings, and the execution of workforce restructurings. The 10-K also flags valuation allowances against certain deferred tax assets and the possibility of tax adjustments.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $481.1M | $411.1M | +17.0% | $423.6M | +13.6% |
| Gross profit | $407.2M | $342.3M | +19.0% | $359.1M | +13.4% |
| Gross margin | 84.6% | 83.3% | +1.4 pp | 84.8% | -0.1 pp |
| Research & development | $95.2M | $96.9M | -1.8% | $99.7M | -4.5% |
| Sales & marketing | $178.2M | $179.2M | -0.6% | $176.8M | +0.8% |
| General & administrative | $53.5M | $53.2M | +0.7% | $49.0M | +9.3% |
| Total operating expenses | $326.9M | $329.2M | -0.7% | $325.5M | +0.4% |
| Operating income (loss) | $80.3M | $13.1M | +514.2% | $33.6M | +138.9% |
| Operating margin | 16.7% | 3.2% | +13.5 pp | 7.9% | +8.8 pp |
| Net income (loss) | $104.5M | $198.8M | -47.5% | $51.8M | +101.7% |
| Net margin | 21.7% | 48.4% | -26.7 pp | 12.2% | +9.5 pp |
| Diluted EPS | $0.19 | $0.37 | -$0.18 | $0.09 | +$0.10 |
| Customers | 10,753 | 228,409 | -95.3% | 10,830 | -0.7% |
Risks
UiPath faces intense competition in agentic automation from enterprise platform vendors, cloud providers, RPA and adjacent automation companies, and open source alternatives, and competitors may respond faster to generative and agentic AI. MD&A positions agentic automation leadership as central, making the pace of AI innovation critical.
Sales outside the U.S. accounted for 54% of fiscal year 2026 revenue, exposing results to tariffs, trade policy shifts, geopolitical tensions, government shutdowns, fluctuating inflation and interest rates, and foreign exchange volatility. These conditions can delay customer purchasing decisions and reduce contract value or duration.
UiPath targets large enterprise, organizational, and government agency customers, where sales cycles are longer, requirements are more complex, upfront sales costs are higher, and deal timing is less predictable. Large customers often start with limited deployments while demanding configuration, integration services, and pricing negotiations.
A substantial portion of revenue and ARR comes from the top 10% of customers. At January 31, 2026, customers with ARR of $1 million or more numbered 357 and accounted for 52% of fiscal year revenue, so purchasing decisions by a small number of customers can disproportionately affect results.
Future growth depends on customers renewing and expanding licenses, but license agreements primarily have annual terms and customers have no obligation to renew. The dollar-based net retention rate was 107% at January 31, 2026 compared with 110% at January 31, 2025.
Success depends on CEO Daniel Dines and other key employees, especially software engineers experienced in AI, ML, and RPA, where competition is intense. Senior leadership transitions and stock price volatility may increase turnover and make equity-based compensation less attractive.
UiPath relies on third-party cloud infrastructure and has non-cancellable multi-year capacity commitments requiring payment irrespective of usage. Purchase commitments totaled $346.9 million as of January 31, 2026, and hosting disruptions or capacity limits could impede customer onboarding and expansion.
Evolving AI rules and regulations in the EU, South Korea, and certain U.S. states, plus existing data and consumer protection laws applied to AI, may require significant compliance resources. Failures involving AI accuracy, bias, intellectual property, privacy, or harmful content could create legal liability and reputational harm.
The dual-class structure concentrates voting control with CEO Daniel Dines, who beneficially owned approximately 84% voting power as of January 31, 2026. This limits other stockholders' ability to influence corporate matters and may make Class A common stock less attractive to certain investors.
UiPath derives a substantial amount of revenue through channel partners whose agreements are generally non-exclusive and do not prohibit them from working with competitors. Partner financial weakness, failure to market UiPath products effectively, or loss of larger partners could reduce sales.
UiPath completed a multi-year ERP implementation during fiscal year 2026, a complex project with broad scope. Post-implementation disruptions or difficulties could impair the ability to record sales, process transactions, collect receivables, and produce timely or accurate financial information.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
ARR
Summary, forecast, risks and KPIs are extracted from UiPath, Inc.'s SEC filings for Q4 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.