Quick OverviewUiPath delivered Q2 revenue of $410 million, surpassing analyst projections of $397.8 million, while EPS of $0.15 aligned with forecastsShares initially surged 10% following the earnings release but dramatically reversed course, declining more than 18% during Friday’s sessionThe company elevated its fiscal 2027 full-year revenue outlook to $1.789B-$1.794B, representing an increase from previous projectionsAnnual recurring revenue expanded 12% compared to the prior year, reaching $1.938 billion; net revenue retention remained stable at 109%Price target adjustments came from multiple analysts: Mizuho moved to $14, Wells Fargo to $15, and TD Cowen to $16, while Canaccord downgraded its rating to Hold citing valuation risksShares of UiPath (PATH) were changing hands at $16.63 during Friday’s premarket hours, representing a decline of approximately 8.7%, following a volatile swing that saw the stock jump as high as 10% immediately after Wednesday evening’s earnings announcement.UiPath Inc., PATHThe enterprise automation platform provider reported second-quarter revenue of $410 million, representing a 13% increase year-over-year and 16% growth when currency fluctuations are excluded. This performance exceeded the Street’s consensus estimate of $397.8 million by approximately $12 million.Non-GAAP earnings per share registered at $0.15, precisely meeting the analyst consensus forecast.The quarter marked UiPath’s fourth consecutive period of GAAP profitability, a significant milestone for an organization that previously struggled with negative cash flow for several years.UIPATH $PATH Q2’27 EARNINGS HIGHLIGHTS Revenue: $410M (Est. $398M) ; +13% YoY Adj. EPS: $0.15 (Est. $0.15) ; flat YoY ARR: $1.94B; +12% YoY Non-GAAP Oper Income: $89M (Est. $75.2M) FY27 Guide: Revenue: $1.789B-$1.794B (Est. $1.78B) Non-GAAP Oper… pic.twitter.com/5OW32X47W7— Wall St Engine (@wallstengine) September 3, 2026The company’s non-GAAP operating margin hit 21.7%, outperforming expectations by approximately 290 basis points. Meanwhile, gross profit margin remained consistent at 83%.The company’s annual recurring revenue reached $1.938 billion, marking a 12% year-over-year increase. Net new ARR totaled $37 million, showing improvement from the $31 million recorded in the comparable quarter last year. Net revenue retention remained unchanged at 109%.A particularly noteworthy metric: artificial intelligence played a role in 18 of the company’s 20 largest deals during the quarter. UiPath management has maintained that AI adoption serves as a catalyst for robotic process automation demand rather than a competitive threat.Upgraded Financial OutlookThe company’s leadership team increased fiscal 2027 revenue projections by $13 million, setting a new range of $1.789 billion to $1.794 billion. Guidance for non-GAAP operating income was similarly enhanced, climbing to approximately $445 million from the prior estimate of $430 million.Free cash flow registered $31 million for the quarter, experiencing a decline attributed to the timing of tax obligations. Management maintained its annual free cash flow projection at $425 million.UiPath also announced executive transitions, elevating Hitesh Ramani to the chief financial officer position while Ashim Gupta will concentrate on his responsibilities as chief operating officer.Wall Street’s TakeMizuho Securities increased its price objective to $14 from $12 while maintaining a Neutral stance. Wells Fargo elevated its target to $15 with an Equal Weight rating unchanged. TD Cowen moved to $16, highlighting consistent execution and robust ARR momentum.In a contrasting move, Canaccord downgraded UiPath to Hold from Buy, even while raising its price target to $17. The firm expressed concerns regarding the company’s valuation following the impressive quarterly results.PATH shares have climbed nearly 70% over the trailing twelve months but have advanced just 12% year-to-date in 2026. Investor anxiety surrounding AI’s potential impact on traditional software revenues has created headwinds for the stock in recent months.Stock repurchase activity declined substantially, with the company buying back 2.4 million shares in Q2 compared to 20.4 million shares in the previous quarter.Based on current trading levels, the company carries a market capitalization of roughly $9.44 billion.The post UiPath (PATH) Stock Plunges 18% Following Earnings Despite Beating Q2 Revenue Expectations appeared first on Blockonomi.