UiPath (NYSE:PATH) saw its stock plummet over 14% intra-day today after delivering a disappointing revenue forecast for fiscal 2026, raising concerns about slowing growth in the automation software sector.
The company reported fourth-quarter revenue of $424 million, slightly below Wall Street expectations of $425.27 million. However, adjusted earnings per share came in at $0.26, surpassing the estimated $0.20.
The main point of concern was UiPath’s forward guidance, which fell well short of analyst projections. The company expects first-quarter revenue between $330 million and $335 million, significantly missing the market’s forecast of $367.4 million. Similarly, full-year revenue guidance of $1.525 billion to $1.53 billion lagged behind the expected $1.59 billion, adding to investor worries about a potential slowdown in demand.
On the recurring revenue side, annualized recurring revenue (ARR) is projected to reach $1.686 billion to $1.691 billion in Q1 and grow to $1.816 billion to $1.821 billion by the end of fiscal 2026. The company also forecasted non-GAAP operating income of approximately $45 million for Q1 and $270 million for the full year.