UiPath Q4 Revenue Up 13.6% to $481M; Guides $1.76B for FY27
UiPath posted Q4 revenue of $481 million, up 13.6% year-over-year, with net income doubling to $104 million and free cash flow of $179 million. Annual recurring revenue reached $1.85 billion, including $200 million from AI products, and management guided FY27 revenue to $1.76 billion while targeting 30% operating margin.
1. Fourth-Quarter Financial Results
UiPath delivered Q4 revenue of $481 million, exceeding estimates with 13.6% year-over-year growth. Adjusted EPS of $0.30 beat forecasts and net income doubled to $104 million, while free cash flow reached $179 million, representing a 37% margin.
2. Margin Expansion and Cost Discipline
Gross margin held at 83.2%, operating margin expanded to 17%, and EBITDA margin climbed to 26%. The company attributed margin gains to disciplined spending, with SG&A and R&D costs declining as a share of revenue.
3. ARR and AI Growth
Annual recurring revenue rose 11% to $1.85 billion, including $70 million in net new ARR. Subscription services grew 16.7%, and AI-related products generated approximately $200 million in ARR, reflecting strong enterprise demand.
4. Fiscal 2027 Guidance and Targets
For fiscal 2027, UiPath forecasts revenue of $1.76 billion and expects ARR to surpass $2 billion. Management also raised its long-term non-GAAP operating margin target to 30%, signaling confidence in productivity gains and internal automation.