Executive Summary
UiPath reported QQ1 2026 revenue of approximately $357 million and ARR of $1.693 billion, up 12% year over year, underscoring continued momentum in its end-to-end automation platform even as the macro environment remains variable. The quarter highlighted meaningful progress in monetizing the Agentic automation strategy, driven by the Maestro orchestration layer, AgentBuilder, and a new consumption-based pricing SKU. While GAAP operating loss narrowed to $16 million from $49 million a year ago, non-GAAP operating income reached $70 million (20% margin), marking a 450 basis-point improvement versus the prior year. Management characterized 2026 as a foundational year for Agentic adoption, with limited near-term revenue contribution but meaningful upside as customers pilot, adopt, and scale Agentic solutions in 2027 and beyond.
UiPath also showcased product and ecosystem momentum: a large install base across 10,000+ customers, a strong retention profile (gross retention 97%, net retention 108%), and a robust ARR expansion driven by net new ARR of $27 million in Q1. Strategic partnerships and product innovations – including Google Cloud collaboration for healthcare record summarization, Microsoft Copilot Studio interoperability, and the PEAK vertical solution integration – position UiPath to broaden its addressable market and accelerate enterprise-wide automation. The company maintained FY2026 guidance, reflecting a conservative view on near-term revenue from Agentic while emphasizing future growth leverage and operating efficiency. Investors should monitor Agentic adoption progress, GTM execution, and macro dynamics (public sector procurement, FX passthrough, and deal mix) as meaningful drivers of H2 performance and beyond.
Key Performance Indicators
QoQ: -148.83% | YoY:66.82%
QoQ: -143.55% | YoY:21.51%
QoQ: -145.67% | YoY:18.45%
Key Insights
Revenue and profitability: QQ1 2026 revenue of $356.6–$357.0 million (GAAP); YoY growth ~6% and QoQ decline vs. 4Q24/4Q25; ARR $1.693B, up 12% YoY; net new ARR in Q1 $27M.
Gross margin: overall 84%; software gross margin 90%.
Expense and profitability: Total operating expenses $231 million; GAAP operating loss $16 million; non-GAAP operating income $70 million (20% margin), up 450 bps YoY; non-GAAP adjusted free cash flow $117 million (33% margin), up ~250 bps YoY.
Cash and liquidity: Cash, ca...
Financial Highlights
Revenue and profitability: QQ1 2026 revenue of $356.6–$357.0 million (GAAP); YoY growth ~6% and QoQ decline vs. 4Q24/4Q25; ARR $1.693B, up 12% YoY; net new ARR in Q1 $27M.
Gross margin: overall 84%; software gross margin 90%.
Expense and profitability: Total operating expenses $231 million; GAAP operating loss $16 million; non-GAAP operating income $70 million (20% margin), up 450 bps YoY; non-GAAP adjusted free cash flow $117 million (33% margin), up ~250 bps YoY.
Cash and liquidity: Cash, cash equivalents and marketable securities $1.6B; no debt; net cash position improved by substantial buybacks (21.9M shares at $10.40).
Cash flow: Net cash provided by operating activities $119 million; free cash flow $106.2 million.
Balance sheet: Total assets $2.644B; total liabilities $946.0M; RPO $1.231B (up 12%); current RPO $776M (up 14%).
Customer and retention metrics: ~10,750 customers; >$100k ARR customers 2,365; >$1M ARR customers 316; DGBR (dollar-based gross retention) 97%; DBNRR (net retention) 108%.
Guidance: Q2 2026 revenue guidance $345–$350M; Q2 ARR guidance $1.715–$1.720B; non-GAAP operating income around $40M; FY2026 revenue guidance $1.549–$1.554B; FY2026 ARR guidance $1.820–$1.825B; non-GAAP operating income ~$305M; non-GAAP adjusted free cash flow ~$370M; non-GAAP gross margin ~85%.
Key management commentary: Agentic adoption is early; no material near-term revenue contribution in 2026; 2027 and beyond to benefit more meaningfully; several strategic partnerships and vertical solutions under way (Google Cloud healthcare, Copilot Studio integration, PEAK, Deloitte collaboration).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
356.62M |
6.42% |
-15.82% |
| Gross Profit |
292.77M |
4.86% |
-18.47% |
| Operating Income |
-16.41M |
66.82% |
-148.83% |
| Net Income |
-22.56M |
21.51% |
-143.55% |
| EPS |
-0.04 |
18.45% |
-145.67% |
Management Commentary
Strategy and product momentum:
- Daniel Dines emphasizes the Agentic automation platform as the cornerstone of UiPath’s growth, noting momentum from the AgentBuilder and Maestro launches and the potential for cross-functional workflow orchestration across robots, agents, and people.
- Management highlights the five competitive advantages of the platform (installed base, deterministic and probabilistic automation, vendor-agnostic integration, enterprise governance, and end-to-end orchestration).
- Google Cloud partnership for healthcare and the Microsoft Copilot Studio integration are framed as essential steps to accelerate horizontal and vertical adoption and cross-platform interoperability.
Operations and monetization:
- Maestro adoption has generated more than 11,000 process instances in preview, with thousands of autonomous agents created and more than 250,000 agent runs to date; UiPath introduced a consumption-based pricing SKU to accelerate adoption.
- The company cites large deals and cross-functional use cases (e.g., Fortune 15 health company expanding Maestro and AgentBuilder use across complex workflows) as validation of the Agentic strategy.
- Customer success stories illustrate time-to-value improvements (e.g., 25% reduction in processing time for inbound sales orders via Agentic and RPA orchestration).
Market and guidance:
- UiPath continues to view 2026 as a foundational year for Agentic, with pilots, proofs of concept, and early deployments intended to pave the way for meaningful revenue in 2027 and beyond.
- Management acknowledges a variable macro environment but sees solid visibility into the second quarter and a favorable mix of deals driving near-term linearity.
Public sector and competitive dynamics:
- Public sector progress highlighted by Air Force initiative (Agentic Airmen) and ongoing federal opportunities; the company remains cautious on near-term procurement timelines but encouraged by demand signals.
- The leadership emphasizes a displacement dynamic versus legacy RPA players, particularly as customers consolidate onto a unified Agentic platform to gain governance, security, and orchestration benefits.
Momentum following our launch has been exciting and was matched by strong first-quarter financial performance.
— Daniel Dines
Maestro is more ambitious in a way. We connect agents with robots and people, and its ability to deliver fixed workflows at the enterprise level that can be executed in an autonomous way makes it a very powerful proposition in the market.
— Daniel Dines
Forward Guidance
Near-term outlook remains anchored by a gradual ramp of Agentic adoption. Management provided explicit guidance for Q2 2026 revenue in the range of $345–$350 million, ARR of roughly $1.715–$1.720 billion, and non-GAAP operating income around $40 million. For the full year, revenue is guided at $1.549–$1.554 billion with ARR of $1.820–$1.825 billion and non-GAAP operating income of approximately $305 million. Non-GAAP adjusted free cash flow is targeted at about $370 million with non-GAAP gross margin around 85%.
The company frames 2026 as a “foundational year” for Agentic, with the real growth potential expected in 2027 as adoption accelerates and cross-functional workflows scale across more customers. Key factors investors should monitor include: (i) the rate of Maestro/AgentBuilder adoption and the incidence of enterprise-wide deployments, (ii) the progression of vertical-specific AI solutions and partner-driven GTM (Deloitte, Google Cloud, Microsoft, etc.), (iii) the pipeline quality and deal mix moving into Q3 and Q4, (iv) macroeconomic stability and federal budget cycles affecting public sector bookings, and (v) the evolution of the pricing model and its effectiveness in reflecting actual usage and value.