UiPath Inc. reported its third‑quarter fiscal 2026 results, posting revenue of $411.11 million—an increase of 16% year‑over‑year—and annual recurring revenue of $1.782 billion, up 11% from the same period last year. The company also reported its first GAAP operating income of $13 million, while non‑GAAP operating income reached $88 million, underscoring a return to profitability after a series of loss‑making quarters.
Revenue growth was driven by a mix of subscription services and license revenue. Subscription services generated $247.57 million, up 18% from $205.5 million in the prior quarter, while license revenue rose to $150.04 million, a 12% increase from $133.5 million. The stronger mix and higher pricing in the agentic automation segment offset modest headwinds in legacy product sales, allowing UiPath to capture a larger share of its high‑margin cloud‑based offerings.
The company’s non‑GAAP earnings per share of $0.16 beat the consensus estimate of $0.14 by $0.02, a 14% upside. The beat was largely attributable to disciplined cost management and a favorable product mix that lifted gross margins. Operating leverage from the higher proportion of subscription revenue helped offset the impact of a $3 million foreign‑exchange headwind that management noted would affect the fourth‑quarter outlook.
Gross margins remained robust, with a non‑GAAP gross margin of 85% and a GAAP gross margin of 83%. The margin expansion reflects both pricing power in the agentic automation space and effective cost control, particularly in sales and marketing and research and development. The GAAP operating income of $13 million, compared with a loss of $12 million in the prior quarter, signals a turning point in the company’s profitability trajectory.
Management reiterated its confidence in the business, maintaining the fourth‑quarter revenue guidance of $462 million to $467 million and reaffirming its outlook for continued growth in core RPA and agentic automation. The guidance, unchanged from the prior quarter, signals that the company expects demand to remain strong despite the FX headwind. CEO Daniel Dines highlighted the company’s focus on combining deterministic automation with agentic AI to deliver ROI, while CFO Ashim Gupta emphasized the role of operating rhythm and execution in achieving the first GAAP profit.
Investors responded positively to the results, reflecting confidence in UiPath’s ability to sustain growth and profitability in a competitive automation market. The company’s performance underscores its strategic positioning and the effectiveness of its cost‑discipline initiatives.
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