UiPath grew revenue 13% to $410 million, stayed GAAP-profitable for a fourth straight quarter and raised fiscal 2027 guidance as customers fold AI into automation workflows.

UiPath reported $410 million in revenue for Q2 fiscal 2027, a 13% increase from last year that beat Wall Street estimates. The company posted GAAP operating income of $32 million and non-GAAP operating income of $89 million. Annualized recurring revenue reached $1.938 billion on July 31, 2026, up 12%, with $37 million of net new ARR and a dollar-based net retention rate of 109%. UiPath ended the quarter with $1.405 billion in cash and $31 million in adjusted free cash flow. Management said customers are adding AI to automation workflows while the company stays profitable. The senior team was reshuffled: Hitesh Ramani became chief financial officer, Brad Brubaker was named chief legal and administrative officer, and Yazdi Bagli joined the board. The company guided Q3 revenue to about $445 million and raised full-year fiscal 2027 revenue guidance to roughly $1.79 billion with about $445 million of non-GAAP operating income. It also disclosed a Rule 10b5-1 plan allowing CEO Daniel Dines to sell up to 5 million Class A shares through February 1, 2027.

What Happened

UiPath reported $410 million in revenue for its second quarter fiscal 2027, a 13% year-over-year increase that beat Street estimates while maintaining profitability. Annualized recurring revenue reached $1.938 billion as of July 31, 2026, marking a 12% increase from the previous year. The company posted GAAP operating income of $32 million and non-GAAP operating income of $89 million, continuing its streak of profitability.

Annualized recurring revenue grew 12% year over year as of July 31, 2026, continuing the company's steady growth trajectory.

The company maintained its streak of profitability, reporting GAAP and non-GAAP operating incomes that reflect consistent earnings strength.

Management also reshaped the senior team: Hitesh Ramani was promoted to chief financial officer, Ashim Gupta will focus exclusively on the chief operating officer role, Brad Brubaker was named chief legal and administrative officer, and the board expanded with the appointment of Yazdi Bagli.

Founder and CEO Daniel Dines said, "AI is expanding what enterprises can automate, while increasing the need for the orchestration, governance, and exactness that deterministic automation provides."

The Numbers

The company added $37 million of net new ARR in the quarter and kept a dollar-based net retention rate of 109%. Profit and cash metrics remained strong, marking the fourth straight quarter of GAAP profitability and a 22% non-GAAP operating margin. Cash and equivalents totaled $1.405 billion, and non-GAAP adjusted free cash flow was $31 million.

Other notable balance-sheet and structural items include a GAAP gross margin near 80 percent and no debt on the balance sheet. Management also reshaped the senior team, promoting Hitesh Ramani to chief financial officer, assigning Ashim Gupta to focus exclusively on the chief operating officer role, naming Brad Brubaker chief legal and administrative officer, and expanding the Board with Yazdi Bagli.

Management guided Q3 revenue to the previously mentioned range and raised full-year fiscal 2027 revenue guidance accordingly, with non-GAAP operating income near the earlier stated figure. It also disclosed a Rule 10b5-1 plan allowing CEO Daniel Dines to sell up to 5 million Class A shares through February 1, 2027; see the company’s Q3 revenue guidance for details.

Watch the next quarter’s print and execution against the raised fiscal 2027 targets, and the timing of any planned insider sales.

Mastheads

Why It Matters

UiPath’s quarter matters because customers are folding AI into automation in ways that raise deal size and deepen dependence on orchestration. Eighteen of the company’s 20 largest deals in the quarter included AI, a direct signal that customers are using the platform to tie agents, robots, APIs and human workflows together.

That point was central on the Q2 earnings call highlights.

Early results show why the shift matters for revenue and retention: UiPath reported coding-agent productivity gains of nearly 60 percent and growing traction in industry-specific solutions, which can raise deal velocity and raise switching costs for customers.

Profitability remains key. The company’s recent quarters have delivered consistent GAAP profitability and strong non-GAAP operating income, giving management room to invest in product and sales while protecting margins.

The recurring revenue base remains solid. ARR growth and a cash position near $1.4 billion provide a buffer as UiPath integrates new AI features.

The key question is whether higher-value, AI-infused deals will drive sustained ARR growth and help UiPath meet its fiscal 2027 revenue and non-GAAP operating income targets.

What's Next

UiPath's immediate test is simple: convert rising AI demand into repeatable ARR growth without surrendering the GAAP profitability streak it just extended. Management has set a clear numerical runway; the company now needs quarters of evidence that large AI-inflected deals and steady retention translate into the bigger, predictable contracts that lift margins and free cash flow.

Near-term milestones to watch

  • Q3 revenue guidance: $440 million to $445 million, and management expects roughly $100 million of non-GAAP operating income for the quarter.
  • Fiscal 2027 targets: revenue guidance raised to $1.789 billion to $1.794 billion, and management projects about $445 million of non-GAAP operating income for the year.
  • ARR and retention: management has guided ARR toward roughly $2.065 billion to $2.070 billion for fiscal 2027; the company reported $1.938 billion of ARR as of July 31, 2026, with 109% dollar-based net retention and $37 million of net new ARR in Q2.
  • Insider activity and governance: CEO Daniel Dines disclosed a Rule 10b5-1 plan under which an entity he controls may sell up to 5,000,000 Class A shares through February 1, 2027, and the company announced a senior leadership reshuffle including Hitesh Ramani as CFO and a new board appointment.
  • Liquidity and cash flow: the quarter closed with $1.405 billion in cash, cash equivalents and marketable securities and $31 million of non-GAAP adjusted free cash flow.

Markets will watch adoption signals inside UiPath's sales pipeline as closely as the official guidance. Eighteen of the company's 20 largest deals included AI in the quarter, and management reported early coding-agent productivity gains near 60 percent, evidence that customers are adding AI agents to automation workflows. If those deals turn into higher-dollar, multi-year contracts, ARR and margins should follow. If they remain one-off proofs of concept, growth could stall even while quarterly profitability holds.

The near-term outlook is clear: a Q3 revenue print in the guided range, steady improvements in net new ARR and retention, and execution from the retooled leadership team. Investors will also watch any significant moves in the CEO share-sale plan for timing and size.

For now, the quarter’s revenue sets the baseline investors will use to judge whether UiPath's AI-driven momentum scales into the fiscal 2027 numbers management just laid out.

Originally reported by Business Wire.

By Michael Carter, Senior Correspondent, USA Daily Report

Michael Carter is a Senior Correspondent at USA Daily Report, where he covers international affairs, geopolitics, and financial markets. Based in Washington, D.C., his reporting focuses on the intersection of global economics and policy - from Federal Reserve rate decisions and Treasury Department regulation to trade disputes and diplomatic negotiations that move markets.

Michael started his career at a regional newspaper in Virginia, covering local government and state legislature before moving to the financial desk of a mid-Atlantic wire service in 2014. There, he spent five years reporting on Wall Street earnings, banking regulation, and the fallout from the 2008 financial crisis's long tail. He joined USA Daily Report to build a newsroom that could explain complex global stories without burying the reader in jargon.

He has reported from the floor of the New York Stock Exchange, covered G7 and G20 summits, and interviewed policymakers on both sides of trade negotiations between the U.S. and its largest partners. His coverage of the 2023 regional banking crisis was cited by several industry publications.

Michael holds a Bachelor of Science in International Relations from Georgetown University's School of Foreign Service. Outside the newsroom, he is an avid distance runner and has completed the Marine Corps Marathon three times.

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This article was created with AI assistance.