Can you detail the split between IDP and agentic within the nearly $200 million AI product ARR? Also, what is WorkFusion's contribution to guidance, given reports of $25 million ARR, and what are the federal business assumptions for next year?

No specific split for AI product ARR is provided due to pricing fungibility; IDP has a good portion, but agentic is significant and complementary. WorkFusion's contribution is below the materiality threshold and is a technology tuck-in. The federal business is seeing good traction and increased appetite for long-term strategic projects, particularly in the Department of War. “WorkFusion, Yes, it's -- we are always looking into the market, especially for tuck-in acquisition that gives us the talent, technology, and expertise in a particular vertical.”

What are you seeing in terms of budgets for automation and AI, and how is UiPath positioned against new agentic solutions? What is the current environment and visibility for the forward year?

UiPath is well-positioned to help customers with AI diffusion into enterprise workflows, leveraging Maestro for process orchestration. AI is driving renewed interest in automation. The macroeconomic environment remains variable, with pockets of strength (financial services, healthcare, Australia, public sector) and fluctuations, leading to a prudent guidance philosophy based on pipeline and statistical models. “We are -- we have -- we built Maestro, which is essentially a process orchestration technologies that -- and at its core, is a new powerful workflow engines. That's -- that gives us a very interesting advantage in the market right now.”

Which verticals are showing the strongest willingness to spend on agentic AI initiatives, and what does success look like for agentic automation at scale?

Healthcare (especially revenue cycle management, denials, prior authorization), Financial Services (strengthened by WorkFusion for financial crime), and the Public Sector are key verticals. Success involves a move towards outcome-based, use case-driven solutions, with a focus on governance and reliability. “I think you got it very right. It's the health care. And I think we nominate it within the health care in particularly, I would say, parts of revenue cycle management, denials, prior authorization. It's a very important type of processes for us.”

PATH

UiPath (PATH) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jan 2026 (Q4 FY26)· Information Technology· Mar 11, 2026

Source: earnings call transcript

Executive summary

UiPath Q4 FY26 — Strong Performance Driven by AI Product Adoption and Operational Efficiency

UiPath delivered a strong Q4 FY26, exceeding guidance across metrics and achieving full year GAAP profitability for the first time. The company is strategically positioned at an inflection point, leveraging agentic AI and platform orchestration to drive value. Management is focused on accelerating growth within its installed base, improving time-to-value for customers, and scaling operating leverage through internal AI adoption.

Highlights

Fourth quarter ARR reached $1.853 billion, up 11% year-over-year.
Achieved full year GAAP profitability for the first time in company history, with GAAP operating income of $57 million for FY26.
Fourth quarter non-GAAP operating income grew to $150 million, representing a 31% margin.
Strongest sequential net additions of customers with $1 million or more in ARR in 2 years, with deals over $1 million up over 50% year-over-year.
AI product ARR reached nearly $200 million, with 90% of $1M+ ARR customers using AI products.

Concerns

SaaS offerings are anticipated to create approximately a 1% headwind to total revenue growth for the full fiscal year 2027.
The macroeconomic environment remains variable, leading to prudent assumptions in guidance.

Guidance & targets

Category	Target	Timeline	Confidence
Q1 FY27 Revenue	$395M-$400M high materiality	Q1 · FY27	High
Q1 FY27 ARR	$1.894B-$1.899B high materiality	Q1 · FY27	High
Q1 FY27 Non-GAAP operating income	~$80M medium materiality	Q1 · FY27	High
FY27 Revenue	$1.754B-$1.759B high materiality	FY27	High
FY27 ARR	$2.051B-$2.056B high materiality	FY27	High
FY27 Non-GAAP operating income	~$415M medium materiality	FY27	High
Long-term Non-GAAP operating margin target	30% high materiality	Long-term (within 3 years)	High
FY27 First half revenue	~$795M medium materiality	H1 FY27	High
FY27 Second half revenue seasonality	Approximately 30% of total revenue in Q4 low materiality	Q4 · FY27	High
FY27 First half net new ARR	~$73M medium materiality	H1 FY27	High
FY27 Second half net new ARR seasonality	Q4 being strongest low materiality	Q4 · FY27	High
FY27 Non-GAAP gross margin	~84% medium materiality	FY27	High
FY27 Non-GAAP operating income seasonality	Similar seasonality to top line metrics low materiality	FY27	High
FY27 Non-GAAP adjusted free cash flow	~$425M medium materiality	FY27	High
FY27 Dilution	2%-3% YoY low materiality	FY27	High

PATH operating KPIs by quarter

PATH operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Jan 2026 Q4 FY26	Apr 2026 Q1 FY27	Jul 2026 Q2 FY27	Change vs prior quarter
Annual recurring revenue (ARR)	$1.853B Fourth quarter ARR reached $1.853 billion, up 11% year-over-year, driven by $70 million of net new ARR and the revenue of $481 million, up 14% year-over-year. Source: earnings call transcript	$1.901B First quarter ARR reached $1.901 billion, up 12% year-over-year, driven by $49 million of net new ARR and revenue of $418 million, up 17% year-over-year. Source: earnings call transcript	$1.938B The ARR reached $1.938 billion, up 12% year-over-year, driven by $37 million of net new ARR and revenue of $410 million up 13% year-over-year. Source: earnings call transcript	+1.9%
Annual recurring revenue (ARR) Cloud	$1.2B+ We ended the year with over $1.2 billion in cloud ARR, which includes both hybrid and SaaS, up over 20% year-over-year. Source: earnings call transcript	—	~$1.3B We ended the quarter with approximately $1.3 billion in cloud ARR, which includes both hybrid and SaaS and an increase of more than 19%. Source: earnings call transcript	—
Customers	~10.75K We ended the quarter with approximately 10,750 customers. Source: earnings call transcript	~10.55K We ended the quarter with approximately 10,550 customers. Source: earnings call transcript	~10.35K We ended the quarter with approximately 10,350 customers with attrition continuing to be concentrated among our smallest customers, while customers with more than $30,000 in ARR increased 6% year-over-year. Source: earnings call transcript	—
Customers above an annual spend threshold ARR $100,000 or more	2,565 Customers with $100,000 or more in ARR increased to 2,565, while customers in $1 million or more in ARR increased to 357. Source: earnings call transcript	2,624 Customers with $100,000 or more in ARR increased 11% to 2,624 and customers with $1 million or more in ARR, increased 18% to 374. Source: earnings call transcript	2,666 Customers with $100,000 or more in ARR increased 10% to 2,666 while customers with $1 million or more in ARR, increased 21% to 387. Source: earnings call transcript	+1.6%
Customers above an annual spend threshold ARR $1 million or more	357 Customers with $100,000 or more in ARR increased to 2,565, while customers in $1 million or more in ARR increased to 357. Source: earnings call transcript	374 Customers with $100,000 or more in ARR increased 11% to 2,624 and customers with $1 million or more in ARR, increased 18% to 374. Source: earnings call transcript	387 Customers with $100,000 or more in ARR increased 10% to 2,666 while customers with $1 million or more in ARR, increased 21% to 387. Source: earnings call transcript	+3.5%
Dollar-based gross retention	97% Dollar-based gross retention was best-in-class at 97%, and our dollar-based net retention rate remained at 107%. Source: earnings call transcript	97% Our dollar-based gross retention -- gross retention rates remained best-in-class at 97% and our dollar-based net retention rate was 109%, underscoring the durability of our customer base as they embrace our agentic automation solutions. Source: earnings call transcript	97% Our dollar-based gross retention remained best-in-class at 97%, and our dollar-based net retention rate was 109%, a 2-point increase year-to-date, demonstrating stabilization across the business. Source: earnings call transcript	0 pt
Net revenue retention rate	107% Dollar-based gross retention was best-in-class at 97%, and our dollar-based net retention rate remained at 107%. Source: earnings call transcript	109% Our dollar-based gross retention -- gross retention rates remained best-in-class at 97% and our dollar-based net retention rate was 109%, underscoring the durability of our customer base as they embrace our agentic automation solutions. Source: earnings call transcript	109% Our dollar-based gross retention remained best-in-class at 97%, and our dollar-based net retention rate was 109%, a 2-point increase year-to-date, demonstrating stabilization across the business. Source: earnings call transcript	0 pt
Net revenue retention rate FX adjusted	106% Adjusting for FX, dollar-based net retention was 106%. Source: earnings call transcript	108% Adjusting for FX, dollar-based net retention rate was 108%, demonstrating stabilization across our business. Source: earnings call transcript	108% Adjusting for FX, dollar-based net retention rate was 108%. Source: earnings call transcript	0 pt
Remaining performance obligation (RPO)	$1.475B Remaining performance obligations increased to $1.475 billion, up 19%. Source: earnings call transcript	$1.413B Remaining performance obligations increased to $1.413 billion, up 15%. Source: earnings call transcript	$1.378B Remaining performance obligations increased to $1.378 billion, up 14% normalizing for the FX headwind, which was approximately $19 million, RPO grew 16%. Source: earnings call transcript	-2.5%
Remaining performance obligation (RPO) Current	$913M Current RPO increased to $913 million, up 13%. Source: earnings call transcript	$908M Current RPO increased to $908 million, up 17%. Source: earnings call transcript	$901M Current RPO increased to $901 million, up 14%. Source: earnings call transcript	-0.8%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Remaining Performance Obligations (RPO) $1.475B Q4 FY26 end

up 19%

Up 14% when normalizing for FX tailwind of ~$64M.

Current RPO $913M Q4 FY26 end

up 13%

Product announcements

Product	Type	Timeline
Agentic AI solutions for healthcare	launch	February
Agentic ERP	launch	—
AI coding agents	roadmap	next couple of months

Deals & partnerships

WorkFusion Acquisition of a company specializing in purpose-built agents for financial crime compliance.

Acquired in February, bringing deep anti-money laundering and know-your-customer expertise directly into the UiPath platform.

Deloitte Expanded partnership to launch Agentic ERP.

The partnership is driving expansion into Test Cloud coverage and building new agentic use cases for SAP S/4HANA migration.

Accenture Collaboration to deploy a global agentic sales order entry solution.

The solution transformed orders while navigating 150,000 exceptions, demonstrating the power of orchestration.

Risks & headwinds

Macroeconomic environment variability FY27

Not quantified, but leads to prudent assumptions in guidance.

Mitigation:Maintaining a consistent guidance philosophy based on pipeline, deep inspection, and statistical/forecasting models; focusing on operational discipline.

SaaS offerings revenue headwind FY27

~1% headwind to total revenue growth.

Mitigation:Acknowledged as an overall positive shift, but impacting reported revenue growth rate.

Foreign exchange rate fluctuations FY27

Modest headwind from the yen, modest tailwind from the euro, resulting in an immaterial aggregate impact.

Mitigation:Considered in guidance, with net effect being immaterial.

Middle East conflict uncertainty Ongoing

Unquantified uncertainty.

Mitigation:Acknowledged as a factor contributing to macroeconomic variability.

What to watch in Q1 FY27

Net new ARR stabilization

H1 FY27

Current $70M (Q4 FY26)

Target Continued stabilization, H1 FY27 ~$73M

Why it matters

Indicates sustained demand and effectiveness of AI/agentic product strategy, crucial for overall growth trajectory.

we are stabilizing net new ARR. And with AI and Agentic, we do feel bullishness about the overall business.

Find out whether PATH delivers this. Inve re-checks your case every morning.

Q&A highlights

How are you thinking about net new ARR expansion potential for FY27 on an FX-neutral basis, and what are the moving parts for the 30% operating income margin target?

FX impact on ARR is minimal for FY27, with yen headwinds offset by euro tailwinds. Operating margin expansion is driven by agentification and technology advances across all functions (engineering, G&A, sales & marketing), allowing for continued investment in growth while maintaining cost discipline.

“from a margin standpoint, you look at the moving pieces and definitely across the board, there is opportunity to agentify and to use the technology advances across every function.”

asked by Bryan Bergin · answered by Ashim Gupta

2 min read 6 chapters

Detailed narrative

Agentic AI and Platform Orchestration

UiPath is at an inflection point, with advances in AI dramatically reducing software building costs. The company believes value will shift to platforms that can safely govern, orchestrate, and scale software reliably. UiPath's Maestro, built on Temporal, is designed to integrate both agentic and deterministic automation under a single control plane, allowing enterprises to move from experimentation to production-grade deployment with accountability and auditability.

This unified approach is seen as a key differentiator in the market.

Installed Base Flywheel and AI Product Adoption

The company reported significant economic shifts within its installed base, with customers expanding their operating models on the UiPath platform. AI product ARR, including agentic, IDP, and Maestro, reached nearly $200 million. Notably, 90% of customers with over $1 million in ARR are using AI products, and they spend nearly three times as much as those who have not.

This indicates that AI agents are extending, rather than replacing, core unattended automation, driving platform-wide expansion.

Governance and Enterprise Trust

UiPath emphasizes that while building agents is becoming easier, making them enterprise-grade is not. Enterprise-grade agents require deterministic execution with traceability, exception handling, and audit trails to satisfy external regulators. The company's platform provides this crucial governance, which has been a deciding factor for customers in regulated industries like banking and automotive, ensuring compliance and reliability at scale.

Vertical Depth and Strategic Partnerships

UiPath is doubling down on its vertical strategy, focusing on industries where domain-specific workflow intelligence is critical. Key verticals include healthcare (targeting revenue cycle management, claims processing) and financial services (strengthened by the WorkFusion acquisition for financial crime compliance). Strategic partnerships with Deloitte and Accenture are also driving large-scale agentic deployments, such as Agentic ERP and global sales order entry solutions for life sciences.

Product Roadmap: AI Coding Agents

The company announced an upcoming capability where AI coding agents will generate and maintain production-grade unattended UiPath automations in hours instead of weeks. This innovation aims to address the growing automation backlog faced by customers, accelerating time-to-value. These AI-generated automations will still rely on the UiPath platform for orchestration, process intelligence, observability, governance, and security.

Operational Efficiency and Profitability Milestones

UiPath has strengthened its operating model, improving coordination and driving greater efficiency. The company achieved full year GAAP profitability for the first time in its history, with GAAP operating income of $57 million for FY26. Management is committed to expanding GAAP profitability and has updated its long-term non-GAAP operating margin target to 30%, driven by continued cost discipline and internal adoption of agentic capabilities across all functions.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.