UiPath Reports 14% Revenue Growth to $361.7 Million in Q2 FY 2026

UiPath, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a total revenue of $361.7 million for the three months ended July 31, 2025, marking a 14% increase from $316.3 million in the same period last year. For the six months ended July 31, 2025, revenue reached $718.4 million, up 10% from $651.4 million in the prior year. The growth was primarily driven by a significant increase in subscription services revenue, which rose by 22% year-over-year to $238.4 million for the quarter, while professional services revenue also saw a 20% increase.

The company reported a net income of $1.6 million for the quarter, a notable improvement compared to a net loss of $86.1 million in the same quarter of the previous year. This shift to profitability was attributed to a reduction in operating expenses, which decreased by 11% to $317.5 million, down from $356.3 million a year earlier. The gross margin remained stable at 82% for both the three and six months ended July 31, 2025, reflecting the company's focus on maintaining cost efficiency while expanding its service offerings.

In terms of strategic developments, UiPath completed the acquisition of Peak AI Limited, a UK-based software company, for $40.1 million. This acquisition is expected to enhance UiPath's capabilities in pricing and inventory intelligence technology, further solidifying its position in the automation market. Additionally, the company has been actively managing its workforce, completing a restructuring initiative aimed at streamlining operations and prioritizing investments in artificial intelligence and innovation.

Operationally, UiPath reported an annualized renewal run-rate (ARR) of $1.72 billion as of July 31, 2025, reflecting an 11% increase year-over-year. The company also noted a dollar-based net retention rate of 108%, indicating strong customer retention and expansion. The total customer count increased to 2,432, with 320 customers generating ARR of $1 million or more. The company continues to expand its geographic footprint, with significant revenue contributions from the Americas, Europe, and Asia-Pacific regions.

Looking ahead, UiPath remains optimistic about its growth trajectory, emphasizing its commitment to enhancing the UiPath Platform and expanding its market share. The company anticipates continued revenue growth driven by increased adoption of its automation solutions, despite potential macroeconomic challenges such as fluctuating interest rates and geopolitical uncertainties. The management expressed confidence in its ability to navigate these challenges while maintaining a focus on innovation and customer satisfaction.