UiPath ( NYSE:PATH ) shares sank 15.85% to $9.96 on Thursday, hitting a record low after the company's fiscal 2026 revenue forecast fell short of expectations.
The automation software provider expects revenue between $1.525 billion and $1.53 billion, below analysts' estimates of $1.58 billion. Annual recurring revenue (ARR) is projected at $1.816 billion to $1.821 billion as of January 31, 2026, compared to $1.66 billion at the end of fiscal 2025, a 14% year-over-year increase.
In Q4, revenue grew 5% year-over-year to $424 million, with net new ARR reaching $60 million. Adjusted earnings per share came in at $0.26, beating analysts' estimates by $0.07.
On the earnings call, CEO Daniel Dines cited rising macroeconomic volatility as a major challenge, with customer budget uncertainty and foreign exchange fluctuations impacting forecasts. He emphasized a cautious approach to fiscal 2026 guidance to account for these uncertainties but reaffirmed UiPath's commitment to its agentic platform for long-term growth.
Separately, UiPath announced the acquisition of Peak, a Manchester-based AI-native firm, to strengthen its vertical AI solutions strategy. Dines said Peak's specialized AI applications will integrate with the UiPath platform to enhance industry-specific automation and improve customer solutions.
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