UiPath (PATH) reports its fiscal third quarter, August to October, in early December. The date is not announced; last year it reported on Wednesday, December 3, so we expect December 2 or 3, after the close. The stock closed at $13.00 on November 6, down from $18.22 before the last report, when it beat its guide and still fell 16.6% the next day.
The third quarter is seasonally strong. Revenue rose 13.7% from the second quarter to the third in fiscal 2026, 12.1% in fiscal 2025 and 13.4% in fiscal 2024. September is the end of the US federal fiscal year, when agencies spend what is left of their budgets. The guide of $440M to $445M is a rise of only 7.3% to 8.5% from the second quarter's $410.3M.
UiPath guides low and beats. Revenue came in above the top of the range in each of the last four quarters, by $10.3M to $18.4M. A year ago the third-quarter guide implied 8.5% at its midpoint and the actual was 13.7%.
Recurring revenue is speeding up. Management guided about $73M of first-half net new ARR in March and delivered $85.1M. The full-year ARR guide has been raised twice, to $2.065B to $2.070B, and contracted revenue due within a year rose 14% to $901M at July 31.
Our build. Subscription services at 55.3% of average ARR give $272.1M. Licenses, recognized up front and the line that swings with big deals, rise 8% from a year earlier to $162.0M. With $20.0M of services, revenue is $454.1M: 2.5% above the $443.0M consensus from 17 analysts and above the highest estimate, $444.5M. We get non-GAAP operating income of $109.5M against a guide of about $100M.
Why it is still a small step. Our forecast is 10.7% above the second quarter, smaller than any of the last three years, to allow for the stronger dollar and for cloud contracts that turn up-front license revenue into subscription revenue spread over time.
What to watch: licenses against last year's $150.0M, net new ARR against the $54M to $59M guide, and the fourth-quarter guide against our $530.2M. Options price a move of about 16.7% either way.
The full preview, with the revenue lines by quarter, the ARR bridge and the fourth-quarter build, is here: UiPath (PATH) Q3 FY27 Earnings Preview and Forecast.
Source: Equibles. Consensus as of November 1; stock price as of November 6.
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