UiPath Reports 13% Revenue Growth to $410.3 Million in Q2 FY 2027

UiPath, Inc. reported its financial results for the second quarter of fiscal year 2027, revealing a total revenue of $410.3 million for the three months ended July 31, 2026, marking a 13% increase from $361.7 million in the same period last year. For the six months ended July 31, 2026, revenue reached $828.6 million, up 15% from $718.4 million in the prior year. The company achieved a net income of $36.1 million for the quarter, compared to a net income of $1.6 million in the same quarter of the previous year, and a net income of $58.6 million for the six-month period, a significant recovery from a loss of $21.0 million in the prior year.

The growth in revenue was driven by increases across all segments, with subscription services revenue rising to $266.1 million, up 12% year-over-year, and professional services revenue increasing by 82% to $20.3 million. The annualized renewal run-rate (ARR) also saw a 12% increase, reaching $1.94 billion as of July 31, 2026. The company reported a gross margin of 80% for the quarter, slightly down from 82% in the previous year, attributed to a higher proportion of lower-margin professional services revenue.

Strategically, UiPath completed the acquisition of WorkFusion, Inc. on February 5, 2026, for a total consideration of $189.5 million, which included $160 million in cash and $29.5 million in contingent consideration. This acquisition is expected to enhance UiPath's capabilities in AI-powered solutions for the financial services sector. The company also reported a significant increase in its employee headcount, reflecting its ongoing investment in talent to support growth initiatives.

Operationally, UiPath's customer base expanded, with 387 customers now generating ARR of $1 million or more, up from 320 a year ago. The company also reported a dollar-based net retention rate of 109%, indicating strong customer loyalty and expansion within existing accounts. However, cash and cash equivalents, along with marketable securities, decreased to $1.41 billion as of July 31, 2026, down from $1.69 billion at the end of the previous fiscal year, primarily due to stock repurchases and investments in marketable securities.

Looking ahead, UiPath remains focused on enhancing its automation platform and expanding its market presence. The company anticipates continued growth in ARR and revenue, driven by increased adoption of its solutions and the integration of AI technologies. However, it acknowledges potential risks from macroeconomic factors, including inflation and geopolitical uncertainties, which could impact customer demand and operational performance.