UiPath Reports 16% Revenue Growth to $411.1 Million in Q3 Fiscal 2026

UiPath, Inc. reported a significant increase in its financial performance for the third quarter of fiscal year 2026, with total revenue reaching $411.1 million, a 16% increase compared to $354.7 million in the same period last year. For the nine months ending October 31, 2025, revenue totaled $1.13 billion, up 12% from $1.01 billion in the prior year. The company achieved a net income of $198.8 million for the quarter, a substantial turnaround from a net loss of $10.7 million in the same quarter of the previous year. This improvement was attributed to a combination of increased subscription services revenue and a reduction in operating expenses.

The company’s annualized renewal run-rate (ARR) as of October 31, 2025, was $1.78 billion, reflecting an 11% year-over-year increase. This growth was driven primarily by existing customers, who contributed 72% of the increase, while new customers accounted for 28%. UiPath's gross margin improved to 83% for both the three and nine months ended October 31, 2025, compared to 82% in the same periods last year, indicating enhanced operational efficiency.

Strategically, UiPath completed the acquisition of Peak AI Limited, a UK-based software company, for $40.1 million, which is expected to enhance its capabilities in pricing and inventory intelligence technology. The acquisition aligns with UiPath's focus on expanding its automation platform through both internal development and strategic acquisitions. 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 a total of 2,506 customers with annual recurring revenue (ARR) of $100,000 or more, up from 2,235 in the previous year. The company also noted a dollar-based net retention rate of 107%, down from 113% a year earlier, indicating a slight decline in revenue expansion from existing customers. As of October 31, 2025, UiPath had cash, cash equivalents, and marketable securities totaling $1.52 billion, down from $1.72 billion at the beginning of the fiscal year, reflecting ongoing investments and share repurchase activities.

Looking ahead, UiPath remains optimistic about its growth trajectory, emphasizing its commitment to enhancing its platform and expanding its market presence. The company anticipates continued revenue growth driven by both new customer acquisitions and existing customer expansions, while also navigating macroeconomic challenges such as inflation and foreign currency fluctuations.