UiPath Shares Spike on Strong Q3 Results and Upgraded Analyst Targets

UiPath Inc. (NYSE:PATH) experienced a significant surge in its stock price on Thursday, December 4, 2025, rising over 18% to $17.58 during early trading. The dramatic increase followed the company’s announcement of third-quarter fiscal 2026 earnings that exceeded analyst expectations across all key metrics.

The automation software provider’s strong performance was further validated by TD Cowen’s decision to raise its price target from $13 to $16 while maintaining a Hold rating, reflecting improved confidence in the company’s execution and market position.

Strong Earnings and ARR Momentum Highlight UiPath’s Turnaround

UiPath delivered impressive third-quarter results for the period ended October 31, 2025, reporting adjusted earnings per share of $0.16 on revenue of $411.11 million, representing 16% year-over-year growth. These figures surpassed analyst expectations of $0.15 EPS and $392.8 million in revenue.

The company’s annualized recurring revenue (ARR) reached approximately $1.782 billion, up 11% from the prior year, demonstrating sustained momentum in customer adoption of its automation platform.

The strong performance was attributed to the company’s successful restructuring efforts in both sales operations and cost management. CEO Daniel Dines emphasized that the results reflect growing momentum as customers scale their automation and AI strategies, highlighting UiPath’s unified platform approach to agentic automation.

The company provided optimistic fourth-quarter guidance, projecting revenue between $462 million and $467 million, with ARR expected to reach $1.844 billion to $1.849 billion by January 31, 2026.

TD Cowen’s analyst commentary noted that UiPath’s early agentic solutions are successfully driving adoption of other platform components, while the company’s Federal business remained insulated from government shutdown impacts.

The firm’s new $16 price target represents approximately 18 times calendar year 2026 enterprise value to free cash flow and about 4 times enterprise value to sales, reflecting consecutive quarters of steadier performance.

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PATH Trades at 18% Gain as Heavy Volume Pushes Market Cap Above $9B

As of 10:32 AM EST on December 4, 2025, UiPath stock was trading at $17.58, up $2.72 or 18.33% from the previous close of $14.86. The stock’s trading volume reached 34.9 million shares, significantly exceeding the average volume of 23.4 million.

The company’s market capitalization stood at approximately $9.388 billion, with the stock trading within a 52-week range of $9.38 to $18.74. The year-to-date return reached an impressive 38%, substantially outperforming the S&P 500’s 16.47% gain over the same period.

UiPath maintains a strong balance sheet with $1.45 billion in total cash and minimal debt, reflected in a debt-to-equity ratio of just 4.76%. The company’s financial health is further evidenced by impressive gross profit margins of 83.09% and levered free cash flow of $449.21 million over the trailing twelve months.

With a forward P/E ratio of 20.37 and analyst price targets ranging from $12 to $17.55 (averaging $13.87), the current stock price has exceeded the consensus analyst target.

Multiple analyst firms have revised their outlook following the earnings report, with several raising price targets. The consensus rating remains at Hold, with 21 analysts covering the stock.

However, analysts indicate that a more positive stance would require improvement in dollar-based net retention, which remained flat at 107% quarter-over-quarter, and greater confidence in the company’s ability to return to net new incremental annual recurring revenue growth for fiscal year 2027.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.