UiPath’s third quarter performance was marked by stronger-than-expected revenue and profitability, with the market responding favorably to both top-line growth and improved margins. Management attributed these results to increased adoption of its automation platform, particularly the integration of deterministic automation with its AgenTiKi AI capabilities. CEO Daniel Dines highlighted the value customers are seeing from agentic automation, noting, “Our automation strategy, combining the reliability of deterministic automation with the intelligence and adaptability of AgenTiKi, continues to align with what customers want most: trusted enterprise-grade automation that delivers tangible ROI fast.”
Is now the time to buy PATH? Find out in our full research report (it’s free for active Edge members).
UiPath (PATH) Q3 CY2025 Highlights:
- Revenue: $411.1 million vs analyst estimates of $392.8 million (15.9% year-on-year growth, 4.7% beat)
- Adjusted EPS: $0.16 vs analyst estimates of $0.15 (9.6% beat)
- Adjusted Operating Income: $87.78 million vs analyst estimates of $69.98 million (21.4% margin, 25.4% beat)
- Revenue Guidance for Q4 CY2025 is $464.5 million at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 3.2%, up from -12.2% in the same quarter last year
- Annual Recurring Revenue: $1.78 billion vs analyst estimates of $1.77 billion (10.9% year-on-year growth, 0.5% beat)
- Billings: $433 million at quarter end, up 12.3% year on year
- Market Capitalization: $10.15 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From UiPath’s Q3 Earnings Call
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Brian Bergen (TD Cowen) asked whether the growing number of companies developing agents reflected broader agentic adoption. CEO Daniel Dines explained that use cases are highly customer specific but highlighted the rapid shift from pilots to production deployments.
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Jake Roberge (William Blair) questioned the sustainability of net new ARR growth. CFO Ashim Gupta pointed to improved sales execution, product launches, and a more stable base after earlier restructuring as key drivers, but cautioned that no single factor guarantees ongoing growth.
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Austin Williams (Wells Fargo) inquired about the OpenAI partnership and its practical impact. Dines clarified that OpenAI models power features like UiPath Screenplay, which uniquely combines UI automation with LLM adaptability.
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Mike Richards (RBC Capital Markets) wanted details on whether technology partnerships included go-to-market elements or pipeline impact. Dines said current partnerships are technology-focused but provide a foundation for reliable AI in enterprise settings.
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Dominique Manansala (Truist Securities) asked how UiPath is addressing customer concerns about AI pricing predictability. Dines stated that the company remains flexible with pricing models and is monitoring emerging usage patterns to better align with customer needs.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of customer adoption for agentic automation and the rate at which proof of concepts transition to full production, (2) the impact of recent technology partnerships on both new use cases and expansion into regulated sectors, and (3) progress in vertical solutions for healthcare and financial services. We will also watch for further advances in product innovation and signs that operational investments translate into sustained margin improvement.
UiPath currently trades at $18.89, up from $15.06 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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