UiPath PATH is sustaining its 2025 growth trajectory by leveraging its cutting-edge AI-powered enterprise automation platform, a key driver of long-term value.
In its recent quarterly results, PATH reported $362 million in revenues, up 14% year over year, and an annual recurring revenue (“ARR”) of $1.72 billion, an 11% increase reflecting strong customer adoption of AI automation solutions. The company’s strategic investments in generative AI capabilities embedded in the platform position it as a leader in transforming enterprise workflows.
UiPath’s growth factor hinges on expanding AI-driven automation adoption across industries, supported by a 108% dollar-based net retention rate and rising free cash flow. This robust growth outlook is accompanied by $101.6 million share repurchase program, signaling confidence in capital allocation and long-term shareholder value creation.
Comparable peers in the AI domain are Palantir Technologies PLTR and C3.ai AI. Palantir leverages AI to deliver data integration solutions to governments and enterprises, delivering substantial growth through broad AI-powered analytics deployments. C3.ai focuses on AI software across sectors, demonstrating high recurring revenue growth driven by AI-first enterprise applications. Both companies, like UiPath, emphasize AI as the core catalyst for transforming business operations and propelling revenue gains.
PATH’s differentiation comes from its broad automation platform that integrates robotic process automation with AI, streamlining complex workflows more holistically than many AI-pure players. Palantir’s strength in data analytics and C3.ai’s AI application breadth provide useful comparative benchmarks, both emphasizing the critical role of AI adoption in enterprise computing.
As AI adoption accelerates, UiPath’s focus on fueling automation revenue growth through continuous product innovation and customer expansion keeps it well-positioned. Investors tracking PATH alongside PLTR and AI see a shared theme: AI is not just an add-on but the engine of transformative business growth in software automation.
PATH’s Price Performance, Valuation and Estimates
The stock has gained 22% in a month against the industry’s 4% loss.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 21.42, which is well below the industry average of 37.83. It carries a Value Score of F.
The Zacks Consensus Estimate for PATH’s earnings has stayed unchanged over the past 30 days.
Image Source: Zacks Investment Research
PATH currently carries 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).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
