UiPath Q2 2027: Revenue Beats, GAAP Operating Income Swings Positive
As seen on the 24/7 Wall St. homepage on September 3, 2026.
Profitability is the story: GAAP operating income swung to $31.6 million from a $20.2 million loss a year ago as stock comp and R&D spending came down. Non-GAAP operating margin widened to 22% from 17%, and management is guiding Q3 revenue to $440 to $445 million, with leadership changes across sales and delivery landing alongside the beat.
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UiPath posted fiscal second-quarter revenue of $410.26 million, beating the consensus estimate and growing 13.4% year over year. Adjusted EPS of $0.15 also came in above expectations, continuing a streak of beats.
GAAP operating income came in at $31.6 million, compared to a loss of $20.2 million in the same quarter a year ago, a swing driven by a meaningful reduction in stock-based compensation and lower R&D spending. Non-GAAP operating margin widened year over year, a sign that the company is generating more earnings leverage from each dollar of revenue it adds.
Annual recurring revenue reached $1.94 billion, up 12% year over year, with a dollar-based net retention rate of 109%, meaning existing customers are expanding their spending on the platform. Those subscription dynamics matter because they underpin the durability of UiPath's revenue base and reduce its reliance on closing new deals to sustain growth.
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For Q3, management guided revenue of $440 to $445 million, with full-year revenue and non-GAAP operating income guidance also provided. The company disclosed leadership changes across sales and delivery, which CEO Daniel Dines framed as a move to sharpen execution speed and accountability.
UiPath also repurchased $268.5 million of its Class A common stock during the six months ended July 31, 2026, reflecting confidence in its cash generation even as cash and marketable securities declined year over year. The buyback activity, combined with the operating income swing and the raised outlook, sets up a different narrative than the growth-at-any-cost story investors were evaluating a year ago.
Mentioned: PATH