UiPath (NYSE: PATH) shares plunged 17% in pre-market trading Thursday after the automation software company released a disappointing revenue forecast for Q1 and fiscal 2026.
For its fourth quarter, UiPath reported revenue of $424 million, slightly below the analysts’ estimates of $425.27 million. However, the company outperformed on earnings, delivering adjusted earnings per share of $0.26 against expectations of $0.20.
UiPath expects first-quarter revenue between $330 million and $335 million, falling well short of the consensus estimate of $367.4 million. Its full-year revenue outlook of $1.525 billion to $1.53 billion also disappointed, compared to Wall Street’s forecast of $1.59 billion.
UiPath shared additional guidance, forecasting annualized recurring revenue to range from $1.686 billion to $1.691 billion in the first quarter, with an expected increase to between $1.816 billion and $1.821 billion by the close of fiscal 2026.
The company also expects non-GAAP operating income of approximately $45 million for the first quarter and $270 million for the full year.
In a separate announcement, UiPath (NYSE: PATH) revealed it has acquired Peak, a Manchester-based AI company. The deal aims to bolster its vertical AI solutions strategy and expand its agentic automation platform.
Peak’s AI platform optimizes inventory and pricing for various clients, streamlining operations without requiring extensive in-house technical teams. UiPath plans to integrate these tools into its platform to enhance its industry-specific offerings.
The acquisition will introduce new Pricing and Inventory Agents to the UiPath platform. These agents will support strict business process requirements. Moreover, Peak’s Decision Intelligence capabilities will enhance UiPath’s orchestration features, enabling autonomous processes based on contextual customer data.
