This article first appeared on GuruFocus.
UiPath (NYSE:PATH) shares surged more than 8% on early Thursday after the company topped expectations with its third-quarter results and gave upbeat guidance.
For the period ended Oct. 31, UiPath reported adjusted EPS of $0.16 and revenue of $411.11 million, up 16% year-on-year. Analysts had forecast about $0.15 in adjusted EPS on roughly $392.8 million in sales.
Annualized recurring revenue rose to about $1.782 billion, up 11% from a year earlier. The company expects ARR near $1.844 billion to $1.849 billion as of Jan. 31, 2026, and sees fourth-quarter revenue between $462 million and $467 million.
CEO Daniel Dines said the results reflect momentum as customers scale automation and AI strategies. He emphasized the company's unified platform approach to agentic automation.
UiPath will host a conference call at 5 p.m. EST to discuss the quarter. Investors will watch whether management can sustain margin gains as customers expand automation deployments.
Analysts revised estimates and noted an improving outlook for UiPath's AI offerings and enterprise traction.