UiPath Stock Surges 41% in a Month: Still a Buy or Bye-Bye?

UiPath Inc. PATH shares have soared 41% over the past month, vastly outpacing the industry’s modest 6% gain. This surge comes after a year-long consolidation, signaling a breakout that has investors taking notice.

Let’s examine whether PATH remains a compelling buying opportunity in the current market landscape.

Riding the Automation Wave

UiPath continues to cement its position as a leader in the rapidly expanding Robotic Process Automation (RPA) market. As demand for AI-driven enterprise solutions accelerates, PATH’s comprehensive automation platform positions it to capture significant growth opportunities.

Strategic alliances with major tech companies like Microsoft MSFT, Amazon AMZN and Salesforce CRM remain a key driver of growth. These partnerships not only enhance PATH’s credibility but also integrate its solutions into leading enterprise ecosystems, including Microsoft Azure, Amazon Web Services, and Salesforce Cloud. Such collaborations amplify PATH’s reach and strengthen its value proposition across diverse industries.

High customer retention underscores PATH’s robust business model, with net retention rates at an impressive 108%. In the second quarter of fiscal 2026, the company reported revenues of $362 million, a 14% year-over-year increase, while annual recurring revenue rose 11% to $1.72 billion, highlighting strong customer loyalty and the resilience of its subscription-based model. With a broad global presence and a focus on intelligent automation, UiPath is well-positioned to maintain leadership in the evolving RPA and enterprise automation sector.

Financial Strength Underpins Growth

PATH’s financial health is equally compelling. As of the second quarter of fiscal 2026, the company held $1.4 billion in cash and cash equivalents, with zero debt. This debt-free status ensures that PATH can aggressively invest in innovation and strategic expansion without financial constraints.

Liquidity metrics are also strong, with a current ratio of 2.75, well above the industry average of 1.95. This indicates that PATH has ample short-term assets to cover liabilities, giving it the flexibility to navigate economic uncertainties and capitalize on emerging opportunities in the competitive automation market.

Analyst Outlook Remains Positive

Analyst projections point to continued growth for PATH. The Zacks Consensus Estimate forecasts third-quarter fiscal 2026 earnings of 14 cents per share, a 27% increase from the prior year. Earnings are projected to grow 23% in fiscal 2026, followed by 11% in fiscal 2027. Revenue growth is expected to reach 11% year-over-year in the next quarter, with 10% and 8% annual growth anticipated in fiscal 2026 and 2027, respectively.

Conclusion: PATH Stands Out as a Strong Buy

With its recent surge, PATH signals strong momentum after a period of stagnation. As a frontrunner in Robotic Process Automation, the company is well-positioned to benefit from the growing demand for AI-powered solutions among enterprises. Strategic partnerships with tech giants, robust customer retention, a subscription-based model, and a debt-free balance sheet equip UiPath to continue its growth trajectory. Coupled with solid financial stability and strong liquidity, PATH remains a compelling buy for investors seeking exposure to the future of enterprise automation.

PATH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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