Shares of software provider UiPath (PATH) slipped in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2025. Earnings per share came in at $0.11, which beat analysts’ consensus estimate of $0.07 per share. Sales increased by 8.8% year-over-year, with revenue hitting $354.65 million. This also beat analysts’ expectations of $347.64 million.
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UiPath’s leadership highlighted that the firm saw strong customer response to its agentic automation vision. Agentic automation is the concept of using AI-powered systems to independently manage complex workflows and make decisions.
In addition, the company’s efforts to improve efficiency and prioritize customer-centric strategies are paying off, according to management, which it claims is helping set the company up for future growth.
2025 Outlook
Looking forward, management has provided the following guidance for FY 2025:
- Revenue of between $422 million and $427 million versus analysts’ estimates of $424 million
- Non-GAAP operating profit of $100 million versus expectations of $86.3 million
As we can see, both the company’s revenue and operating income outlook are better than expected, along with the current quarter’s results. However, the stock still managed to sink over 7% in the after-hours session at the time of writing. This is likely because shares have rallied over 20% in the past couple of weeks heading into earnings.
As a result, today’s earnings report was likely not enough to justify a further rally and led investors to take some profits.
Is PATH Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PATH stock based on two Buys and 15 Holds assigned in the past three months. In addition, the average PATH price target of $15.75 per share implies 3% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
