UiPath reported a healthy second quarter of fiscal 2026 (QQ2 2026) with strong top-line momentum and expanding margins driven by disciplined cost management and the early monetization of the AgenTik platform. Revenue reached $362 million, up 14% YoY, while ARR rose 11% to $1.723 billion, supported by $31 million of net new ARR. Importantly, cloud ARR exceeded $1.08 billion, up more than 25%, reflecting accelerating cloud adoption as customers migrate to multi-product, open-architecture automation stacks.
From a profitability perspective, non-GAAP operating income rose to $62 million, or 17% margin, up more than 1,500 basis points YoY, underscoring operating leverage as UiPath reorganizes GTM, scales specialists, and emphasizes value-based selling. Gross margins remained robust at 84% overall (software gross margin 90%), while GAAP operating loss narrowed to $20 million (excluding stock-based compensation of $78 million). The company also demonstrated balance-sheet strength with approximately $1.5 billion in cash and no debt, enabling continued buybacks (8.3 million shares repurchased at $12.10 on the quarter).
Management highlighted that AgenTik and IDP are increasingly contributing to deal sizes and multi-solution opportunities, with 450 customers actively developing agents and almost 1 million agent runs executed since launch. While management cautioned that AgenTik’s top-line contribution in FY2026 is not material, the trajectory implies meaningful upside in FY27 as deployments move from POC/pilot to broader production. The guidance raises for Q3 and FY2026 reflect improved visibility, FX tailwinds, and stronger operating discipline, though management remains mindful of macro volatility and currency movements.
Overall, UiPath’s QQ2 outcomes reinforce a multi‑year thesis: (1) an expanding agentic automation stack that combines orchestration, RPA, and API automation; (2) durable revenue retention with a 108% net retention rate and a 98% gross retention rate; (3) continued cloud migration and higher multi‑solution deals; and (4) a clear path to GAAP profitability as the company scales infrastructure, GTM, and product-led growth initiatives. Investors should monitor AgenTik adoption in the back half of FY2026 and the cadence of ARR growth and free cash flow re-acceleration into FY27.