Insiders Have Been Selling Ahead of UiPath’s Q2 Earnings

That wraps up our initial coverage of UiPath’s Q2 results. Thank you for stopping by!

UiPath just reported earnings, with shares initially up 12% following the report. Here are the key numbers:

• Revenue: $410.26M vs. $397.85M expected
• Adjusted EPS: $0.15 vs. $0.15 expected

Quick Read:

UiPath beat revenue expectations by roughly 3% while adjusted EPS came in exactly in line with Wall Street estimates.

The 12% initial surge suggests investors like the top-line momentum, with revenue growing 13% year over year as Wall Street looks for evidence that UiPath’s agentic AI strategy is accelerating growth.

Bull Case: Momentum, Margins, and Agentic Traction

• Consistent revenue beats: Q2 FY26 by 4.14%, Q3 FY26 by 4.64%, Q4 FY26 by 3.51%, Q1 FY27 by 5.26%, with Q1 revenue of $418 million, up 17%.
• 16 of the top 20 deals included AI, and AI expansion deals ran six times larger.
• GAAP profitability arrived for the first time, with Q1 non-GAAP operating margin at 22%.
• EPS revisions skew positive: 10 upward vs. 5 downward in 30 days.

Bear Case: High Bar, Decelerating Growth

• Shares are up 37.85% in one month, raising the setup risk.
• ARR growth is stuck near 11%-12%, well below prior levels.
• Q1 EPS missed by 5.48%, and analysts remain 16 Hold vs. 3 Buy.
• Insider direction is selling, an odd counterpoint to the rally.

With UiPath (NYSE:PATH) reporting after the close, here is what to listen for on the 5:00 PM ET call.

Top 5 Analyst Questions

1. Is net new ARR reaccelerating above the $49 million posted in Q1?
2. How much is agentic AI contributing, given 16 of the top 20 deals already include it?
3. Path to the 30% long-term non-GAAP margin target?
4. Competitive wins versus Microsoft Power Automate and Salesforce Agentforce?
5. Pace of buybacks after $243.8M repurchased in Q1?

Key Topics and Buzzwords

• Maestro Case, UiPath for Coding Agents, WorkFusion contribution, outcome-based pricing.
• Listen for “orchestration,” “deterministic plus agentic,” “pilot to production.”

Red Flags

• ARR at the low end of $1.929B-$1.934B.
• DBNR slipping below 109%.
• Any full-year guide trim versus the $1.776B-$1.781B range, which would jeopardize the 37.85% one-month rally.

UiPath is expected to report fiscal Q2 2027 earnings at 4:10 PM ET, with Wall Street looking for evidence that its agentic AI push is translating into stronger recurring revenue growth.

Management has guided for revenue of $395-$400 million and ARR between roughly $1.929-$1.934 billion. Investors will also be watching net new ARR, with a figure above roughly $49 million providing another signal that growth is accelerating.

The stakes are high after UiPath shares soared around 40% over the past month. A higher full-year ARR outlook could validate the rally and strengthen the case that UiPath is evolving from a traditional automation vendor into a broader enterprise AI orchestration platform.

A guidance cut would tell a very different story and could put much of the stock’s recent rally at risk.