Update shared on 25 Oct 2025
Fair value Increased 2.05%UiPath’s analyst price target has been revised upward to $13 from $12.50, as analysts cite ongoing product innovation and new partnerships. This comes despite expectations of gradual top-line impact amid ongoing market competition.
Analyst Commentary
Analysts continue to assess UiPath's performance and outlook, revising price targets and highlighting key factors influencing their recommendations. These views reflect both ongoing optimism and caution regarding the company's future growth and competitive positioning.
Bullish Takeaways
- Bullish analysts point to ongoing product innovation, specifically citing updates to the Maestro orchestration platform as a catalyst for future revenue growth.
- New partnerships and product launches signal UiPath's commitment to expanding its technology suite and customer base.
- Recent quarter performance showed net new annual recurring revenue increasing by $30M, outpacing certain estimates and indicating momentum in core business operations.
Bearish Takeaways
- Bears caution that despite product enhancements, a highly competitive market environment may delay meaningful improvements to top-line growth.
- Net new annual recurring revenue, though above some estimates, still represents a 30% year-over-year decline, raising concerns about growth sustainability.
- While over 450 customers have adopted agentic capabilities, analysts believe it remains too early to predict meaningful automation-driven contributions to long-term forecasts.
What's in the News
- UiPath announced its recognition as a Leader in the Gartner Magic Quadrant for AI-Augmented Software Testing Tools. This highlights advancements such as AI-powered agents that enable more autonomous, adaptive, and efficient software testing across development cycles. (Key Developments)
- The company unveiled expanded offerings for its UiPath Platform, which include pre-built solutions, enhanced orchestration tools, new agent-building options, and industry-specific workflows. These offerings are aimed at accelerating enterprise agentic automation. (Key Developments)
- UiPath launched a Conversational Agent with voice interaction powered by Google’s Gemini models. This feature enables more natural, multilingual speech-based automation for business processes. (Key Developments)
- Collaborations with OpenAI, NVIDIA, and Snowflake are enabling new integrations that bring advanced generative AI, enhanced data processing, and agentic automation into enterprise workflows. These collaborations support innovation and productivity. (Key Developments)
- UiPath provided fiscal 2026 guidance, projecting revenue between $1.571 billion and $1.576 billion and annual recurring revenue in the range of $1.834 billion to $1.839 billion. (Key Developments)
Valuation Changes
- The Fair Value Estimate has increased slightly, moving from $13.44 to $13.71.
- The Discount Rate has declined marginally, from 8.45% to 8.43%.
- The Revenue Growth Projection has risen moderately, from 8.72% to 8.76%.
- The Net Profit Margin Forecast has decreased slightly, from 4.65% to 4.53%.
- The Future Price-to-Earnings (P/E) Ratio has increased, moving from 91.67x to 95.91x.
Disclaimer
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