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UiPath Touted as Value Play as Profit Outlook Improves and Agentic AI Gains Traction

The investment case hinges on improving margins, rising AI‑agent adoption, a more modest multiple.

Overview

  • Shares have fallen more than 80% from their peak, leaving the stock at roughly 5 times sales and about 19 times forward earnings at a $14.31 share price.
  • Management says the company is on track for its first profitable year, with a 21% adjusted operating margin reported in the fiscal third quarter.
  • UiPath reports strong usage of its agentic AI platform, orchestrating over 365,000 processes and maintaining a 98% gross retention rate.
  • The company is broadening its public‑sector footprint with engagements at the U.S. Coast Guard, Veterans Administration, and Social Security Administration.
  • Wall Street projects revenue approaching nearly $1.9 billion within two years and expects faster earnings growth, with estimates implying about 26% annualized gains.