PATH
UiPath, Inc.
Technology · Software - Infrastructure · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong growth and momentum scores reflect the double-digit revenue expansion and the clear inflection from operating losses to consistent operating profitability across recent quarters.
- The profitability score is tempered by the large divergence between the 17.5% net margin and the 3.5% operating margin, suggesting below-the-line items are doing heavy lifting.
- Zero scores for both the dividend factor and the macro theme factor weighed on the composite, contributing to the overall score of 49.7/100 and a Very High risk rating.
Why Not Higher
- The absence of a dividend and the failure of the Industrial Automation & Robotics theme assignment to generate a positive score both scored zero, structurally limiting the composite.
- The thin 3.5% operating margin relative to the 17.5% net margin, combined with the 2027Q1 step-down in net income to $22,525,000, introduces meaningful uncertainty about the durability of reported profitability.
Data Confidence
6 / 10
Medium — some data gaps
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $1,429,664,000 in FY2025 to $1,610,572,000 in FY2026, a gain of +12.7%. Net income swung from -$73,694,000 in FY2025 to $282,330,000 in FY2026 (+483.1%), while diluted EPS improved from -$0.13 in FY2025 to $0.52 in FY2026 (+500.0%).
The model rewarded the combination of double-digit top-line expansion and a dramatic bottom-line turnaround from loss to meaningful profit, both of which signal accelerating business momentum across the FY2025-to-FY2026 period.
In FY2026, UiPath posted a net margin of 17.5% and a return on assets of 8.9%, though its operating margin was a much thinner 3.5% in the same period.
The model recognized a healthy net margin and solid asset returns, but the wide gap between the 17.5% net margin and the 3.5% operating margin—likely reflecting significant below-the-line items—tempered the overall profitability score.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue rose from $361,728,000 in 2026Q2 to a peak of $481,107,000 in 2026Q4 before pulling back to $418,382,000 in 2027Q1. Operating income followed a similar arc, moving from -$20,185,000 in 2026Q2 through $13,071,000 in 2026Q3 and $80,286,000 in 2026Q4, then settling at $27,987,000 in 2027Q1. Net income showed the same pattern, peaking at $198,839,000 in 2026Q3 and $104,462,000 in 2026Q4 before declining to $22,525,000 in 2027Q1.
The model rewarded the clear inflection from operating losses to consistent operating profitability across the trailing four quarters, even as the most recent quarter reflects a seasonal or cyclical step-down from the prior peaks.
UiPath does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor because no dividend income is available to shareholders, which is consistent with a growth-oriented software company that retains capital for reinvestment.
UiPath is assigned to the Industrial Automation & Robotics macro theme.
Although the company carries a recognized macro theme assignment, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
UiPath delivered strong top-line growth of +12.7% year-over-year, with revenue rising from $1,429,664,000 in FY2025 to $1,610,572,000 in FY2026, while net income swung dramatically from a loss of $73,694,000 to a profit of $282,330,000 over the same period. Profitability metrics show a healthy net margin of 17.5% and return on assets of 8.9% in FY2026, though the operating margin of just 3.5% signals that a significant portion of net income is driven by below-the-line items rather than core operations. Quarterly momentum confirms a genuine inflection to operating profitability across the trailing four quarters, even as the most recent quarter reflects a step-down from peak levels. The composite score of 49.7/100 with a Very High risk rating reflects these positives alongside structural gaps including no dividend and no positive macro theme score.
Plain English
UiPath is growing its revenue solidly and finally turned a real profit this year, but a lot of that profit comes from items outside normal business operations, and the company pays no dividend — so while the growth story looks promising, there are enough question marks to warrant more research before drawing conclusions.
Bull Case vs. Bear Case
Bull Case
- Revenue grew +12.7% year-over-year to $1,610,572,000 in FY2026, and net income swung from a loss of $73,694,000 to a profit of $282,330,000, signaling accelerating business momentum.
- Quarterly operating income moved from -$20,185,000 in 2026Q2 to $80,286,000 in 2026Q4, confirming a clear inflection from operating losses to consistent operating profitability.
- A net margin of 17.5% and return on assets of 8.9% in FY2026 demonstrate that the business is generating meaningful returns relative to its asset base.
Bear Case
- The wide gap between the 17.5% net margin and the 3.5% operating margin in FY2026 suggests that reported profits are heavily dependent on below-the-line items rather than core operational performance.
- The most recent quarter (2027Q1) showed a pullback in revenue to $418,382,000 and a sharp decline in net income to $22,525,000 from the prior quarter's $104,462,000, raising questions about sustainability of recent peak results.
- UiPath pays no dividend, meaning shareholders receive no current income, and the macro theme assignment to Industrial Automation & Robotics did not translate into a positive theme score under the model's methodology.
What Could Change the Picture
Bullish Triggers
- Sustained operating margin expansion toward the level of the net margin would suggest that core business operations — not just below-the-line items — are driving profitability.
- A return to the revenue and operating income trajectory seen in 2026Q3 and 2026Q4 after the 2027Q1 step-down would reinforce that the inflection to profitability is durable rather than seasonal.
Bearish Triggers
- If the gap between the 3.5% operating margin and 17.5% net margin persists or widens, it would suggest the company's headline profitability is fragile and dependent on non-recurring or non-operational gains.
- A continued deceleration in quarterly revenue growth beyond the 2027Q1 pullback would challenge the double-digit top-line expansion narrative that underpins the bull case.
Risk Profile
Very High RiskThe Very High risk rating reflects the significant quarterly volatility in net income — which peaked at $198,839,000 in 2026Q3 before falling to $22,525,000 in 2027Q1 — and the large divergence between operating and net margins that makes the profitability picture difficult to assess with confidence. Financial health details beyond total assets of $3,179,200,000 in FY2026 are not fully elaborated in the available filing evidence, adding further uncertainty.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.