UiPath Delivers Profitable Q3, Revenue and ARR See Double-Digit Growth
UiPath (NYSE: PATH) just crossed an important profitability threshold. In its third quarter of fiscal 2026, the automation platform leader reported GAAP operating income of $13 million—its first-ever Q3 profit—alongside a robust 16% jump in revenue to $411 million. Annualized Renewal Run-rate (ARR), a key subscription metric, rose 11% year-over-year to $1.782 billion. These numbers highlight both growing customer adoption and the firm’s progress on disciplined execution.
Profitability Strengthens on Margin Expansion and Operating Discipline
UiPath not only expanded revenue, but also delivered impressive margins. GAAP gross margin landed at 83%, with non-GAAP margin edging even higher at 85%. Non-GAAP operating income was $87.78 million (a margin of 21%), far surpassing the $49.72 million achieved a year prior. Strong cost management was a factor: both sales & marketing and research & development expenses were reduced from last year. Cash generation also remained solid, with operating cash flow of $28 million and a sizable $1.52 billion in liquidity (cash, cash equivalents, and marketable securities).
| Q3 FY26 Highlights | Value |
|---|---|
| Revenue | $411M (+16% YoY) |
| Annualized Renewal Run-rate (ARR) | $1.782B (+11% YoY) |
| GAAP Gross Margin | 83% |
| Non-GAAP Gross Margin | 85% |
| GAAP Operating Income | $13M |
| Non-GAAP Operating Income | $87.78M |
| Dollar-Based Net Retention Rate | 107% |
| Cash, Cash Equivalents & Securities | $1.52B |
AI and Automation Partnerships Deepen—Driving Product Vision and Customer Value
The quarter wasn’t just about financials. UiPath revealed new platform capabilities and expanded industry alliances, signaling an intent to lead enterprise AI-powered automation. Integrations and collaborations included:
- Microsoft Azure AI Foundry: Joint orchestration between UiPath and Azure AI agents for complex workflows
- OpenAI: A ChatGPT connector for enterprise workflow integration
- Google: Launch of voice-enabled conversational agents using Gemini models
- NVIDIA: Secure AI for sensitive workflows (fraud detection, healthcare)
- Snowflake: Data-driven agentic automation to unlock faster business insights
This growing ecosystem and ability to connect automation with industry-leading AI and data platforms reinforce UiPath’s competitive moat—and support the CEO’s view that customers want a unified automation experience, not fragmented tools.
Guidance and Industry Recognition Remain Strong
For Q4 fiscal 2026, management guided revenue to $462–$467 million and expects ARR to reach up to $1.849 billion. Non-GAAP operating income is projected at about $140 million. Notably, UiPath also received significant third-party validation: it was named a Leader in Gartner’s Magic Quadrants for both Intelligent Document Processing and AI-Augmented Software Testing Tools, and was recognized by Everest Group and TIME Magazine for innovation and industry impact.
| Q4 FY26 Guidance | Low End | High End |
|---|---|---|
| Revenue | $462M | $467M |
| ARR | $1.844B | $1.849B |
| Non-GAAP Operating Income | ~$140M | |
Key Takeaway: UiPath Cements Its Position as an Enterprise Automation Leader
UiPath’s performance this quarter delivers a clear message: enterprise automation isn’t slowing down. Its leap into profitability, broad-based customer growth, expanding AI ecosystem, and recognition as a leader by industry analysts put the company on solid footing heading into 2026. For investors and enterprise tech-watchers alike, UiPath remains one of the best-positioned platforms to capture the accelerating convergence of automation and artificial intelligence across global businesses.
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