Skip to content
    PATH
    Earnings call· Apr 2026(Q1 FY27)

    UiPath Q1 FY27 earnings call PATH

    May 28, 2026 Source

    Executive summary

    UiPath, Inc. Q1 FY27 — Strong Start with AI Adoption and Operational Efficiency

    UiPath delivered a strong start to fiscal 2027, exceeding guidance across key financial metrics, driven by robust AI adoption and disciplined operational execution. The company achieved its first GAAP profitable quarter, demonstrating improved efficiency while investing in strategic growth areas. The platform's unique ability to combine deterministic automation, agentic AI, and process orchestration is driving larger deals and deeper customer engagement, positioning UiPath for continued expansion in enterprise AI adoption.

    Highlights

    5

    • ARR reached $1.901 billion, up 12% year-over-year.

    • Revenue grew to $418 million, an increase of 17% year-over-year.

    • Non-GAAP operating income was $92 million, representing a 22% margin, up over 250 basis points year-over-year.

    • The company achieved GAAP profitability for the first time in Q1, with $28 million in GAAP operating income.

    • Dollar-based net retention rate was 109% (108% adjusted for FX), showing a 2-point increase quarter-over-quarter.

    Concerns

    2

    • A nominal incremental FX headwind is expected for Q2 and full year FY27 ARR and revenue.

    • Customer attrition continues to be concentrated amongst the smallest customers.

    Guidance & targets

    9
    CategoryTargetConfidence
    Q2 FY27 Revenue
    $395 million to $400 million
    high materiality
    High
    Q2 FY27 ARR
    $1.929 billion to $1.934 billion
    high materiality
    High
    Q2 FY27 Non-GAAP Operating Income
    approximately $75 million
    medium materiality
    High
    Q2 FY27 Basic Share Count
    approximately 518 million shares
    low materiality
    High
    FY27 Revenue
    $1.776 billion to $1.781 billion
    high materiality
    High
    FY27 ARR
    $2.058 billion to $2.063 billion
    high materiality
    High
    FY27 Non-GAAP Operating Income
    approximately $430 million
    high materiality
    High
    FY27 Non-GAAP Adjusted Free Cash Flow
    approximately $425 million
    medium materiality
    High
    FY27 Non-GAAP Gross Margin
    approximately 84%
    medium materiality
    High

    Operational metrics

    25
    Non-GAAP Operating Income
    $92 millionup >250 bps YoY
    Q1 FY27

    Driven by improved operational efficiency and disciplined execution.

    GAAP Operating Income
    $28 millionup from prior year GAAP operating loss of $16 million
    Q1 FY27

    First GAAP profitable first quarter in company history.

    Stock-based compensation expense
    $53 million
    Q1 FY27

    Included in GAAP operating income.

    Cash, cash equivalents and marketable securities
    $1.4 billion
    Q1 FY27 end

    Healthy balance sheet with no debt.

    Shares repurchased
    20 million shares
    Q1 FY27

    Part of capital return program.

    Shares repurchased
    2 million shares
    April 30 - May 27, 2026

    Repurchased under 10b5-1 plan since Q1 end.

    FX tailwind to Q1 ARR and revenue
    <$1 million
    Q1 FY27

    From time of last earnings call through end of Q1.

    FX tailwind to Q1 Revenue
    approximately $7 millionyear-over-year
    Q1 FY27

    Impact on reported revenue growth.

    FX tailwind to Q1 ARR
    $9 millionyear-over-year
    Q1 FY27

    Impact on reported ARR growth.

    Normalized Revenue growth
    15%
    Q1 FY27

    Normalizing for year-over-year FX tailwind of approximately $7 million.

    Normalized Net new ARR
    improvedyear-over-year
    Q1 FY27

    Normalized for foreign exchange and the impact of M&A.

    Software gross margin
    90%
    Q1 FY27

    Component of overall gross margin.

    Overall gross margin
    83%
    Q1 FY27

    Strong gross margin performance.

    Operating expenses
    $256 million
    Q1 FY27

    Managed with focus on operational efficiency.

    Customers generating >$30,000 in ARR
    grew 7%year-over-year
    Q1 FY27

    Reflects focus on larger enterprise customers.

    AI deals in top 20 deals
    16
    Q1 FY27

    Indicates strong AI adoption in significant transactions.

    AI expansion deals size
    6x largerthan those that did not include AI
    Q1 FY27

    Highlights the monetization potential of AI solutions.

    Medical Record Summarization solution review time reduction
    90%
    Q1 FY27

    Achieved by a leading health care technology company.

    Transaction screening alert review solution automation
    61%
    Q1 FY27

    Achieved by a regional bank.

    UiPath Test Cloud for agentic testing savings
    nearly $3 million
    Q1 FY27

    Expected by a leading U.S. utility provider.

    Project build time reduction (consumer electronics)
    4-week project to 3 hours
    Q1 FY27

    Achieved using UiPath coding agents.

    Project build time reduction (chip manufacturer)
    2-month project to a few days
    Q1 FY27

    Achieved using UiPath coding agents.

    Telecommunications company automated processes
    2,000
    Q1 FY27

    Demonstrates expansion from deterministic to agentic workflows.

    Medical technology company annual savings from IXP
    $5 million
    Q1 FY27

    Standardizing on UiPath IXP for high-volume unstructured documents.

    Latin American healthcare provider cumulative benefits
    $12 million
    Q1 FY27

    Expected from selecting vertical solutions for revenue cycle management, medical record summarization, and claim denial management.

    Industry KPIs

    12
    MetricValueDetails
    Revenue growth$418 millionUSD
    Arr net new arr$1.901 billionUSD
    Rpo current rpo$1.413 billion (Total RPO); $908 million (Current RPO)USD
    Pricing model mixSubscription and per-seat pricing dominates
    Customer account countapproximately 10,550customers
    Large customer cohorts2,624 (>$100K ARR); 374 (>$1M ARR)customers
    Large deal new logo metrics16deals
    Gross retention renewal rate97%%
    Operating FCF margin rule of 4022% (Non-GAAP Operating Margin); $130 million (Non-GAAP Adjusted Free Cash Flow)% (margin); USD (FCF)
    Ai product adoption monetization16 out of top 20 deals included AIdeals
    Net revenue net dollar retention109%%
    Headcount internal ai productivity—

    Orderbook & backlog

    2
    Remaining Performance Obligations (RPO)$1.413 billionQ1 FY27 end

    up 15% YoY (16% normalized for FX headwind)

    FX headwind was approximately $9 million.

    Current RPO$908 millionQ1 FY27 end

    up 17% YoY

    Product announcements

    2
    ProductTypeDetails
    UiPath for coding agentslaunch
    Maestro Caselaunch

    Deals & partnerships

    10
    Deloittepartnership

    Embedding UiPath Test Cloud into their Ascend delivery platform, bringing agentic testing capabilities to Deloitte's global client base.

    Accenturepartnership7-figure expansion

    A life sciences customer worked with Accenture to deploy a global agentic sales entry solution, scaled across 70 countries, and is now partnering to design an office of the CIO intake solution built on UiPath's process orchestration platform.

    Microsofttechnical integration

    Integrated UiPath with their security suite to help automate threat detection and response.

    Salesforcetechnical integration

    Launched a new AgentExchange offering that extends Maestro process orchestration across Salesforce and back office systems.

    Google Cloudtechnical integration

    Brought UiPath IXP solution to their marketplace.

    Databrickstechnical integration

    Connected their data intelligence platform directly with UiPath process orchestration to help enterprises move from data insights to automated action within governed workflows.

    Candela Medicalcustomer contract

    New enterprise customer with significant long-term expansion potential.

    Tire Rackcustomer contract

    New enterprise customer with significant long-term expansion potential.

    Shoprite Holdingscustomer contract

    New enterprise customer with significant long-term expansion potential.

    Global semiconductor companycustomer contract

    Replacing a legacy RPA vendor with UiPath as their strategic automation platform due to cross-system integration and end-to-end process orchestration capabilities.

    Risks & headwinds

    3
    Variable macroeconomic environmentongoing

    unquantified

    Mitigation: Maintaining a prudent outlook and guiding to what is seen in front of us.

    Incremental FX headwindQ2 and full year FY27

    nominal

    Mitigation: Raising guidance despite the headwind due to progress on operating priorities.

    Customer attrition concentrated amongst smallest customersongoing

    unquantified

    Mitigation: Focusing on deepening presence within complex enterprises with greater long-term expansion opportunity.

    Q&A highlights

    8

    Inquired about changes in the underlying demand trends, pipeline conversion, deal timing, and sales cycles, especially with the extended macroeconomic variability.

    Management stated the environment has remained relatively stable compared to the beginning of the year, expressing positivity about pipeline health, conversion rates, and predictability. Customer conversations are going well, and pilots are converting, indicating good momentum despite the variable environment being a 'new normal'.

    “No. We actually feel like the environment has stayed relatively stable versus what we saw in the first quarter -- sorry, when we guided into the first quarter earlier this year, Bryan, I think we actually feel very positive about the momentum in the business, the health of our pipeline and the conversion rates and the predictability.”

    asked by Bryan Bergin · answered by Ashim Gupta

    2 min read6 chapters

    Detailed Narrative

    01

    AI Adoption and Platform Strategy

    UiPath is seeing a significant shift from early experimentation to production deployment of its agentic and business process orchestration products, launched a year ago. This is playing out across installed base expansion, process orchestration adoption, and vertical AI workflows. Notably, 16 out of the top 20 deals in Q1 FY27 included AI, and expansion deals incorporating AI were six times larger than those that did not, indicating strong monetization of AI capabilities.

    02

    Process Orchestration Focus

    Customer priorities have clearly evolved, with a consistent focus on process orchestration, as customers seek to transform entire business functions through end-to-end workflows. UiPath's Maestro platform, which orchestrates agents, automation, APIs, systems, and people, is critical for this. The launch of Maestro Case into public preview extends this capability to unstructured enterprise work, further solidifying UiPath's position in complex workflow management.

    03

    Coding Agents and Developer Productivity

    The company launched UiPath for coding agents at DevCon, enabling developers to connect their coding agent of choice to create, test, deploy, and manage automations. This innovation dramatically reduces operational burden and compresses deployment timelines from quarters to weeks, as demonstrated by customers reducing 4-week projects to 3 hours and 2-month projects to a few days. This is expected to accelerate time to value and strengthen customer retention.

    04

    Document Intelligence and Vertical Solutions

    UiPath IXP is gaining momentum in automating document-intensive workflows, with the company recognized as a leader in Document Mining and Analytics Platforms by Forrester. This translates into large enterprise deployments, such as a medical technology company realizing $5 million in annual savings, expected to grow to $10 million. Additionally, UiPath expanded its portfolio of industry-specific governed workflows across financial services, retail, manufacturing, and the office of the CFO, with a Latin American healthcare provider expecting $12 million in cumulative benefits from vertical solutions.

    05

    Partnerships and Ecosystem Integration

    UiPath continues to deepen its go-to-market and technical integrations. Collaborations with Deloitte and Accenture are instrumental in scaling AI-driven workflows. Technical integrations include UiPath with Microsoft's security suite, a new AgentExchange offering for Salesforce, IXP solution on Google Cloud Marketplace, and connecting with Databricks' data intelligence platform. These partnerships broaden reach and enhance the platform's capabilities within key enterprise ecosystems.

    06

    Operational Efficiency and Customer Adoption

    The company is making meaningful progress on operational efficiency, achieving increased operating leverage while investing in R&D, vertical solutions, and customer-facing functions. The forward-deployed engineering (FDE) program, launched six months ago, is effectively bridging product innovation and customer deployment, accelerating time to value. This focus on efficiency and adoption contributes to the company's ability to expand operating margins while prioritizing growth.

    AI-generated summary of the company’s earnings call. Not investment advice.