UiPath’s second quarter results were met with a positive market response, as the company delivered above-consensus revenue and profitability. Management attributed the strong performance to accelerating adoption of its AI-enabled automation solutions, particularly the AgenTeq platform, and a disciplined focus on operational efficiency. CEO Daniel Dines highlighted that customers are increasingly combining traditional robotic process automation (RPA) with new AI and agentic tools, resulting in larger and more complex deals. He emphasized, “Our leading AI capabilities and agentic AI offerings bring adaptability, intelligence, and speed, fueling increasing commercial momentum.”
Is now the time to buy PATH? Find out in our full research report (it’s free).
UiPath (PATH) Q2 CY2025 Highlights:
- Revenue: $361.7 million vs analyst estimates of $347.5 million (14.4% year-on-year growth, 4.1% beat)
- Adjusted EPS: $0.15 vs analyst estimates of $0.08 (79.8% beat)
- Adjusted Operating Income: $62.29 million vs analyst estimates of $40.08 million (17.2% margin, 55.4% beat)
- The company lifted its revenue guidance for the full year to $1.57 billion at the midpoint from $1.55 billion, a 1.4% increase
- Operating Margin: -5.6%, up from -32.7% in the same quarter last year
- Annual Recurring Revenue: $1.72 billion vs analyst estimates of $1.72 billion (11.1% year-on-year growth, in line)
- Billings: $301 million at quarter end, down 3.8% year on year
- Market Capitalization: $6.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From UiPath’s Q2 Earnings Call
- Brian Bergen (TD Cowen) asked about the progression from pilot to production for agentic solutions and the impact on deal sizes. CEO Daniel Dines and CFO Ashim Gupta explained that agentic adoption is uncovering new automation opportunities and leading to larger, multi-solution deals.
- Jake Roberge (William Blair) questioned how UiPath positions Maestro orchestration in customer conversations. Dines described Maestro’s agnostic approach and integration as key differentiators, helping win against major orchestration platform providers.
- Austin Williams (Wells Fargo) inquired about performance and outlook in the U.S. public sector. Gupta noted strong momentum and recent wins, with government buying patterns returning to normal, supporting a more stable outlook.
- Mike Richards (RBC Capital Markets) asked about the pricing model for the AgenTeq portfolio. Dines stated that the consumption-based pricing is well received, though predictability of pricing remains a focus for customers.
- Keith Bachman (BMO Capital Markets) pressed on growth from existing customers and timing of meaningful ARR contribution from agentic capabilities. Gupta said agentic monetization is underway but more significant impact is expected in future periods as adoption scales.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of customer adoption and monetization of agentic automation and AI solutions, (2) sustained growth in cloud-based recurring revenue, and (3) execution of partnerships with global integrators and technology providers like Deloitte and Microsoft. Progress in public sector deals and sector-specific adoption will also be important markers.
UiPath currently trades at $11.65, up from $10.82 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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