Update shared on06 Sep 2025
Fair value Decreased 5.98%UiPath’s price target has been revised down due to a sharp year-over-year decline in net new ARR and heightened long-term market uncertainty, reflecting a lowered fair value from $14.15 to $13.30.
Analyst Commentary
- Net new annual recurring revenue rose by $30M, but this represents a 30% year-over-year decline.
- The company exceeded estimates for net new ARR, coming in $5M ahead of expectations.
- Over 450 customers have begun deploying agentic capabilities with UiPath.
- Adoption of advanced automation features is still in early stages.
- The long-term automation market is expected to be competitive, introducing uncertainty to UiPath’s growth forecasts.
What's in the News
- UiPath provided Q3 fiscal 2026 revenue guidance of $390–$395 million and full-year revenue guidance of $1.571–$1.576 billion; ARR expected at $1.771–$1.776 billion for Q3 and $1.834–$1.839 billion for the full year.
- UiPath was dropped from multiple major Russell growth indices, including Russell 1000, 3000, Midcap, 2500, and Small Cap Growth benchmarks and indices.
- UiPath announced it transformed its ERP system through a strategic collaboration with Deloitte, using its own automation platform to drive operational efficiency, automate over 85% of core finance workflows, and enable accelerated project delivery.
- The internal "Customer Zero" initiative achieved a 93% clean SAP S/4HANA core and automated 60% of test cases, reducing manual effort and technical debt.
- UiPath is positioning for an agentic ERP future where AI agents autonomously manage complex enterprise workflows, aiming to set a new standard for automation-driven modernization.
Valuation Changes
Summary of Valuation Changes for UiPath
- The Consensus Analyst Price Target has fallen from $14.15 to $13.30.
- The Future P/E for UiPath has significantly risen from 36.44x to 94.00x.
- The Net Profit Margin for UiPath has significantly fallen from 13.09% to 4.65%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.