UiPath (PATH) Delivers Solid Q2 Results, Analyst Stays on Hold

UiPath Inc. (NYSE:PATH) is one of the AI Stocks Gaining Attention on Wall Street. On September 5, Needham analyst Scott Berg reiterated a Hold rating on the stock. The rating affirmation follows PATH’s solid second-quarter results against conservative guidance.

The company’s customer retention (NRR) has stopped falling and is holding steady at 108%. This is a good sign after two years of precipitous decline, the firm noted.

Overall, Needham believes that growth may be slow in the near-term but new opportunities and PATH’s improving conditions suggests better times ahead.

“We are incrementally more positive on PATH shares after UiPath reported solid 2Q results against conservative guidance. PATH is showing early stabilization signs with NRR flat Q/Q at 108% after precipitously declining over the last two years. While net new ARR was down 30% Y/Y, guidance implies 2H improvements."

"Similar volume-based companies in our coverage typically take multiple quarters to work through downsell dynamics before reaccelerating growth. Macro commentary remained steady while Fed spending has started to thaw, unlocking pent-up deal activity from recent quarters. Agentic automation remains key to product vision and early traction appears positive, the opportunity is unlikely to materially contribute to growth until 2HFY27. On guidance, PATH reported a decent raise after adjusting for incremental FX tailwinds.”

UiPath Inc. (NYSE:PATH) is a well-known software as a service (SaaS) enterprise that develops AI-powered automation platforms to help businesses transform their operations.

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Disclosure: None.