UiPath (PATH) Stock Forecast & Price Target

UiPath Inc. demonstrates a strong financial performance, with total revenue increasing by 14.4% year-over-year, driven by a notable 22.4% growth in subscription revenue, while professional services revenue rose by 20.1%. The company's current remaining performance obligations (cRPO) reached $789 million, reflecting a 15% increase year-over-year, indicating robust future revenue potential. Overall, the growth in recurring revenue streams and steady demand for UiPath's enterprise automation solutions positions the company favorably in the market.

UiPath Inc has witnessed a concerning decline in its operating cash flow, decreasing by 10% year-over-year to $41.6 million, which has negatively impacted its margin from 14.2% in the prior quarter to 11.5%. Additionally, projections indicate a net new annual recurring revenue (NNARR) decline of approximately 7% year-over-year in FY27, leading to a total NNARR expectation of $170.5 million, which reflects a substantial 16% decrease year-over-year. The company's existing customer annual growth in ARR has also faced a steady decline for five consecutive quarters, further exacerbated by a flat year-over-year license revenue figure of $112.2 million, which fell short of prior estimates.