UiPath 'Story Remains A Work In Progress': Analysts Want To See More After Q3 Results, 'Sustained Execution Remains Key'

UiPath Inc PATH analysts stay mostly on the sidelines with concerns for the short-term after the company reported third-quarter financial results Thursday.

The PATH Analysts: Oppenheimer analyst Brian Schwartz maintained a Perform rating on UiPath with no price target.

RBC Capital Markets analyst Matthew Hedberg maintained a Sector Perform rating with a $16 price target.

Truist analyst Terry Tillman maintained a Hold rating with a $14 price target.

KeyBanc Capital Markets analyst Jason Celino maintained a Sector Weight rating with no price target.

JPMorgan analyst Mark Murphy maintained an Overweight rating and raised the price target from $17 to $18.

Oppenheimer on PATH: Management commentary could suggest that stabilization is expected for the company next year, Schwartz said in a new investor note.

The analyst said margin growth returning and guidance for faster free cash flow growth are positives from the quarter. The negatives were soft guidance, modest billings growth and declining net new ARR (annual recurring revenue) trends, the analyst added.

"F3Q results and guidance are unlikely to alleviate investor concerns that AI is weakening the company's moat," Schwartz said.

RBC Capital on PATH: The quarterly results showed improved execution and a stable demand environment Hedberg said in a new investor note.

The analyst highlighted the company's commentary on stabilized net new ARR in the report.

"We continue to believe PATH is likely to remain range-bound over the medium term and as execution improvement plays out and the agent vision unfolds," Hedberg said.

Hedberg highlighted UiPath's commentary on early interest from customers with over 1,000 sign-ups for the Agent Builder product.

"While we like the agent vision and improved execution, we think it will take some time to see tangible benefits from agentic solutions, and we'd like to see more proof points of stability in results."

Truist on PATH: The company's growth remains sluggish going forward, Tillman said in a new investor note.

"The story remains a work in progress in terms of improving annualized renewal run-rate and returning net new ARR to a position of solid growth," Tillman said.

The analyst said the company showed progress in the third quarter with advancing partnerships and early adoption of its agentic automation.

"Sustained execution improvement remain key to growth reacceleration, in our opinion."

KeyBanc on PATH: Initial fiscal 2026 commentary was more mixed than expected, Celino said in a new investor note.

The analyst said the commentary that net new ARR dollars are expected to stabilize could be viewed as a downtick versus consensus estimates of a modest uptick.

"In terms of macro, UiPath noted trends remain largely consistent with no noticeable signs of improvements or deterioration," Celino said.

Celino said there could be long-term opportunities, but the near-term execution and growth challenges remain near-term concerns.

JPMorgan on PATH: The company showed a positive tone with its outlook and commentary, Murphy said in a new investor note.

The analyst said the company's Second Act is centered on the Agentic Model.

"UiPath appears to be making bold moves and speaking very confidently to its Agentic vision, conveying an ability to up-level conversations with customers and elevating its platform beyond just automation," Murphy said.

The new platform could open up the company for "new growth vectors," the analyst said.

"Overall, we view the performance in the quarter as solid, and see the business as mostly stable/stabilizing."

PATH Price Action: UiPath stock is down 2.47% to $14.58 on Friday versus a 52-week trading range of $10.37 to $27.87. The stock is down 39% year-to-date in 2024.

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Photo: Courtesy of UiPath, Inc.