Movement Alert|UiPath Falls 9.85% in Regular Trading, Q2 Revenue Beat Offset by Flat Earnings and CFO Transition

Market Focus
Sep 04

On September 4, UiPath fell 9.85% in regular trading, trading at $16.375/share, with turnover of $65.405 million. The decline was triggered by a mixed fiscal Q2 earnings report and a leadership transition in the finance function.

UiPath reported fiscal Q2 revenue of $410.3 million, up from $361.7 million a year earlier and beating the FactSet consensus estimate of $397.8 million. However, adjusted EPS came in at $0.15, unchanged from the year-ago period, signaling stalled profit growth. The company raised its full-year revenue guidance to $1.789–$1.794 billion, above the prior range and the Street estimate of $1.778 billion. Fiscal Q3 revenue is guided at $440–$445 million versus analyst expectations of $441.5 million.

Simultaneously, UiPath announced the promotion of Deputy CFO Hitesh Ramani to Chief Financial Officer, replacing Ashim Gupta who will continue as COO. The management reshuffle compounded investor unease. Despite UBS raising its price target to $19 from $12 and Truist lifting its target to $17, both maintaining hold-equivalent ratings, the combination of zero earnings growth and executive turnover triggered broad profit-taking. Investor focus has now shifted to ARR growth momentum — reported at $1.938 billion, up 12% year-over-year — and the company's AI monetization trajectory ahead of its September investor day.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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