Key insights
- UiPath's latest quarter shows rapid adoption of its agent-based AI framework, resulting in commercial gains.
- Approximately 450 customers build agent workflows, with nearly one million agents running since launch.
- Higher margin AI modules and increasing engagement suggest that UiPath may be entering a renewed phase of growth.
UiPath Inc.'S (AWAY – Free Report's latest performance shows a company making significant progress through its Agentic Automation suite, a driver that is now shaping customer acquisition, margin expansion and upward revisions to future earnings.
The single most important driver in the latest quarter is the rapid, commercially productive launch of UiPath's agent-based AI framework. Management emphasized that AI-powered and agent solutions enable UiPath to close deals faster and at larger contract sizes than is possible with traditional automation models.
The response is measurable: around 450 customers are actively creating agent-based workflows, while almost a million agent runs have taken place since the platform was launched. Deterministic automation continues to play a critical role in acquiring new customers, with over 95% starting there, but the increase in AI adoption across UiPath's installed base is where the real acceleration unfolds. These advanced features improve platform stability, increase ARR dynamics and improve profitability profile.
Re-acceleration Tailwind forms
Higher margin AI modules, expanded use cases, and increasing customer loyalty suggest that UiPath may be entering a renewed phase of growth. As enterprises transition to autonomous digital operations, UiPath's agent base positions it favorably for multi-year adoption.
Peer Lens: Palantir, C3.ai
Comparable colleagues in the AI sector are Palantir Technologies (PLTR – Free report) and C3.ai (AI – Free report). Palantir uses AI to provide data integration solutions for governments and enterprises and is driving significant growth through the widespread use of AI-powered analytics. C3.ai focuses on AI software across industries and demonstrates high recurring revenue growth driven by AI-focused enterprise applications. Both Palanti, C3.ai and UiPath emphasize AI as a key catalyst for transforming business operations and driving revenue growth.
PATH price history, valuation and estimates
The stock has fallen 17% in a month, compared to the industry's loss of 14%.
Image source: Zacks Investment Research
From a valuation perspective, PATH is trading at a price-to-earnings ratio of 19.06, which is well below the industry average of 31.74. It carries a Value Score of F.
The Zacks Consensus Estimate for PATH's earnings has remained unchanged over the past 30 days.
Image source: Zacks Investment Research
PATH currently has a Zacks Rank #3 (Hold). You can see You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.