Is It Time to Buy UiPath With the Stock Beaten Down?

**UiPath **(PATH +1.12%) shares have had a rough start to the year, with the stock price down nearly 30% year to date, as of this writing. The stock got caught in the software-as-a-service (SaaS) sell-off, and its Q4 earnings report did little to ease investor fears, despite the company solidly beating expectations and issuing upbeat guidance.

UiPath is a robotic process automation (RPA) company that has been transforming itself into an AI orchestration platform to help manage both simple software bots and AI agents. Let’s take a close look at the company’s quarterly results and prospects to see if the stock’s sell-off is a buying opportunity.

Image source: Getty Images.

Gaining some momentum

UiPath has been doing well within its existing customer base, and that continued in the fourth quarter of fiscal year 2026, ended Jan. 31, with the company reporting a 107% dollar-based net retention rate. Any number over 100% indicates that existing customers are growing after churn. Meanwhile, it said it saw its best large customer growth in two years, with a 50% increase in new customers with annual recurring revenue (ARR) of $1 million or more in the quarter. (Note that UiPath’s ARR consists of its annualized subscription revenue and maintenance and support obligations, but doesn’t include perpetual license or professional service revenue.)

The company’s growth is being led by the momentum it is seeing in AI product revenue, especially with agentic AI. AI product ARR reached $200 million, with 25% growth in customers spending $100,000 or more with the company. It said that 60% of customers with ARRs of $100,000 or more and 90% of $1 million ARR customers use its AI products.

Overall revenue for the quarter rose by 14% to $481.1 million, cruising past analyst expectations of $464.9 million. Its AAR increased by 11% year over year to $1.85 billion, while it added $70 million in new ARR in the quarter, a 15% increase. Adjusted earnings per share (EPS) jumped by 15% to $0.30, surpassing the $0.25 consensus.

Looking ahead, UiPath guided for first-quarter revenue in the range of $395 million to $400 million, with the midpoint above the $393.4 million analyst consensus. It guided for ARR between $1.894 billion and $1.899 billion. For the full year, it forecast revenue to be between $1.754 billion and $1.759 billion, with ARR of between $2.051 billion and $2.056 billion.

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NYSE: PATH

UiPath

Today’s Change

(1.12%) $0.13

Current Price

$11.71

Key Data Points

Market Cap

$6.2B

Day’s Range

$11.48 - $11.88

52wk Range

$9.38 - $19.84

Volume

733K

Avg Vol

34M

Gross Margin

83.87%

Is it time to buy the stock?

UiPath is showing some signs of reinvigorating growth, with its net new ARR growth accelerating for the first time in several years. Its agentic AI opportunity is still in the very early innings, but its Maestro agentic orchestration platform can be a differentiator as AI agents become more widespread and organizations need a solution to better manage them.

Meanwhile, the stock is cheap, trading at a forward price-to-sales ratio of 3.5 and a forward P/E of just 15. The company is also flush with cash (with nearly $1.7 billion in cash and marketable securities on its balance sheet), and it just initiated a $500 million buyback. Between its valuation and turnaround potential, the stock is a buy on this dip.