TenQ

The UiPath story

UiPath makes business automation and orchestration software, with its shift toward AI centered on whether Maestro can deepen customer expansion without eroding margins as cloud deployments grow.

UiPath stock reportTenQ Score 19/36 · every chart and check from its filings
  • $12.85share price, last close
  • $6.7Bmarket value
  • 19/36TenQ Score checks passed
  • 18.3%growth a year the price assumes

The story in brief

  • Existing customers drive growth. Existing customers accounted for 85% of revenue growth in fiscal 2026, making expansion within established accounts central to UiPath's business.
  • Profit measures differ. In the quarter to July 2026, UiPath reported GAAP operating income of $32 million versus non-GAAP operating income of $89 million, which excludes stock compensation and other costs.
  • Cash carries a cost. Over the last twelve months, UiPath generated $363 million of free cash flow alongside $235 million of stock-based pay, a significant distinction for cash measured after stock compensation.

What drives the business

  • UiPath is directing its platform toward AI, automation, and orchestration following a restructuring designed to streamline operations and focus research and development on AI.
  • Its commercial offering lets customers choose between on-premises and cloud deployments, with revenue coming from term licenses, maintenance and support, hosted software, and professional services.
  • In fiscal 2026, revenue reached $1,610.6 million, up 13%, with subscription services contributing $152.5 million of the increase and existing customers accounting for 85% of total revenue growth.
  • Annualized renewal run-rate, or ARR, reached $1.938 billion as of July 31, 2026, up 12 percent year-over-year, with net new ARR of $37 million and dollar-based net retention of 109 percent.
  • Maestro Case extends the platform into AI-native case management for processes such as investigations and approvals, while Maestro Flow gives developers a canvas to design, run, and govern complete business processes.

What the price assumes

At $13.09, the reverse DCF implies that free cash flow after stock pay grows 18.8% a year for ten years, using a discount rate of 10.3%.

That exceeds UiPath's multiyear revenue growth record of 15.0% a year and the TenQ check's 9.5% bar, which slows that record halfway toward 4%.

Revenue stands in for the historical growth record, so this comparison does not establish that UiPath has delivered the same growth in cash after stock pay.

Value PATH on your own assumptions

What could change the story

  • Revenue growth over the last twelve months was 15.0%, matching the multiyear pace rather than accelerating and falling below the TenQ sector benchmark of 17.0%.
  • UiPath expects greater cloud deployment to increase hosting and infrastructure costs and affect gross margin, which was 80 percent in the quarter to July 2026.
  • Its operating margin of 8.9% trails the TenQ sector benchmark of 11.0%, leaving operating efficiency an unfinished part of the transition.
  • Profit comparisons also require care because the income tax benefit increased by $177.3 million in fiscal 2026, mainly from releasing a valuation allowance associated with the U.S. entity.
  • Enterprise procurement cycles concentrate new and renewal bookings in the second half of UiPath's fiscal year, while changes in license start dates or contract duration can shift recognized revenue between periods.

What to watch next

  • For the third quarter of fiscal 2027, UiPath expects revenue of $440 million to $445 million, ARR of $1.992 billion to $1.997 billion as of October 31, 2026, and non-GAAP operating income of approximately $100 million.
  • For fiscal 2027, its 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.
  • Net new ARR and dollar-based net retention will show whether customer expansion is strengthening, while gross margin, GAAP operating income, and stock-based pay will help distinguish operating progress from adjusted profit growth.

Sources

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