UiPath Stock Sinks 6% — But It Could Still Be the Next Palantir

• UiPath (PATH) banal is selling disconnected contempt beardown net arsenic the marketplace has not yet priced successful whether agentic AI automation volition accelerate endeavor adoption the mode it did for Palantir Technologies (PLTR).

• UiPath reported a profitable quarter, with GAAP operating income swinging to $13 cardinal from a nonaccomplishment of $43 cardinal a twelvemonth ago.

• The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.

UiPath (NYSE:PATH) declined astir 6% successful today's session, trading beneath $12 midday connected Thursday. The selloff is puzzling connected the surface. UiPath conscionable posted a 4th that bushed expectations connected each large metric and crossed a profitability threshold it had ne'er crossed before.

The banal is present down 29% year-to-date. Underneath the terms action, however, there's a existent statement gathering that UiPath is mounting up for the benignant of inflection that Palantir Technologies (NYSE:PLTR) experienced earlier the marketplace yet rewarded its AI level story.

The question isn't whether UiPath is simply a bully business. Rather, it's whether the marketplace is pricing successful what happens erstwhile agentic AI automation goes from endeavor experimentation to endeavor standard.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

UiPath's astir caller quarter, Q4 of FY2026, was genuinely impressive. Revenue came successful astatine $411 million, up 15.9% year-over-year, beating the statement estimation of $392.87 million. Non-GAAP EPS of $0.16 bushed the $0.146 estimate.

The profitability communicative is what stands out. UiPath posted GAAP operating income of $13 million, compared to a nonaccomplishment of $43 cardinal successful the aforesaid 4th past year. Non-GAAP operating income astir doubled to $88 million, with non-GAAP operating borderline expanding to 21% from 14% a twelvemonth ago.

Annual recurring gross reached $1.782 billion, up 11% year-over-year, with a dollar-based nett retention complaint of 107%. That retention fig means existing customers are spending more, not less. Moreover, Q4 guidance calls for gross of $462 to $467 cardinal and non-GAAP operating income of astir $140 million.

CEO Daniel Dines framed the accidental succinctly connected the net call:

"Enterprises are accelerating their AI and automation strategies, and they're looking for a unified level alternatively than standalone tools. Our quality to bring deterministic automation, agentic automation, and orchestration unneurotic successful 1 trusted, governed strategy is simply a existent differentiator. It's delivering meaningful outcomes for customers and positions america good arsenic we adjacent retired the year."