PATH: Partnerships And New AI Offerings Will Shape Automation Leadership Ahead

Analysts have modestly increased their price target for UiPath, raising it from approximately $13.71 to $13.86 per share. They cite recent product updates and ongoing developments in the AI and automation space as supportive factors for the adjustment.

Analyst Commentary

Recent Street research reflects a mix of optimism and caution regarding UiPath's near-term prospects, as evidenced by adjustments in price targets and shared observations on the company's execution and market positioning.

• Bullish analysts have increased their price targets, citing product innovation and recent updates, especially to the Maestro orchestration platform, as drivers for potential long-term growth.
• Checks for off-quarter earnings have shown improvement compared to prior periods, suggesting better execution during October and modest resilience amidst broader software market volatility.
• UiPath’s customer base continues to adopt advanced automation and agentic capabilities, with the company highlighting the deployment of these solutions among more than 450 customers.
• There is continued belief that investments in artificial intelligence and partnerships could help accelerate topline growth as these trends mature further.

• Bearish analysts express concern over the intense competitive landscape, emphasizing that while product updates are positive, realizing their full impact on financial performance may take time.
• Some reductions in price targets reflect a belief that near-term growth expectations should be moderated, particularly given a year-over-year decline in net new annual recurring revenue, despite exceeding internal estimates.
• The software sector remains volatile due to the crowding effect in AI trades, resulting in increased scrutiny over UiPath’s ability to sustain accelerated growth within this environment.
• Uncertainty remains around how quickly UiPath can translate its current innovations and customer wins into meaningful financial improvement, as competition for automation leadership intensifies.

What's in the News

• UiPath became a founding technical contributor to the AIUC-1 security framework, helping set new standards for secure and compliant AI agent adoption in enterprises. (AIUC-1 announcement)
• The company was recognized as a Leader in the Gartner Magic Quadrant for AI-Augmented Software Testing Tools, highlighting advancements in agentic AI testing capabilities. (Gartner recognition)
• UiPath expanded its platform to offer more pre-built solutions, enhanced orchestration tools, and new agent-building capabilities. These changes are designed to accelerate agentic automation for enterprises. (Product announcements)
• UiPath deepened AI partnerships with NVIDIA, Snowflake, and OpenAI to integrate enterprise-grade automation with advanced generative AI. This collaboration aims to create new capabilities for automating sensitive, data-driven business processes. (Partnership announcements)
• UiPath issued updated guidance for the third quarter and fiscal year 2026, including projected revenue and annual recurring revenue growth. (Corporate guidance)

Valuation Changes

• Consensus Analyst Price Target has risen slightly, moving from $13.71 to $13.86 per share.
• Discount Rate has edged down marginally, decreasing from 8.47% to 8.43%.
• Revenue Growth assumptions increased modestly, up from 8.76% to 8.77%.
• Net Profit Margin expectations held nearly steady, slipping very slightly from 4.53% to 4.52%.
• Future P/E ratio projections have risen marginally, moving from 96.0x to 96.9x, indicating a minor increase in valuation expectations.