UiPath reports 16% revenue growth and $411 million in Q3 2026, marking first GAAP profitability with strong ARR momentum and customer engagement.

Greetings and welcome to the UiPath third quarter 2026 earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during this conference, please press Star0 on your telephone keypad. Please note that this call is being recorded. I will now turn the conference over to your host, Elise Ferlani, Vice President of Investor Relations. Thank you. You may begin.

Good afternoon and thank you for joining us today to review UiPath's third quarter fiscal 2026 financial results which we announced in our earnings press release issued after the close of the market today. On the call with me are Daniel Dines, Founder and Chief Executive Officer and Ashim Gupta, Chief Operating and Financial Officer to deliver our prepared comments and answer questions. Our earnings press release and financial supplemental materials are posted on the UiPath investor relations website. These materials include GAAP to non GAAP reconciliations. We will be discussing non GAAP metrics on today's call. This afternoon's call includes forward looking statements regarding our financial guidance for the fourth quarter fiscal year 2026 and our ability to drive and accelerate future growth and operational efficiency and grow our platform, product offerings and market opportunity. Actual results may differ materially from those expressed in the forward looking statements due to many factors and therefore investors should not place undue reliance on these statements. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to our annual report on Form 10K for the year ended January 31, 2025 and our subsequent reports filed with the SEC. Forward looking statements made on this call reflect our views as of today. We undertake no obligation to update them. I would like to highlight that this webcast is being accompanied by slides. We will post the slides and a copy of our prepared comments to our Investor relations website immediately following the conclusion of this call. In addition, please note that all comparisons are year over year unless otherwise indicated. Now I would like to hand the call over to Daniel.

Thank you Elise Good afternoon everyone. Thanks for joining us. We are pleased with our performance in the quarter which was driven by team's focus, consistent execution and progress across our strategic priorities. Our automation strategy, combining the reliability of deterministic automation with the intelligence and adaptability of Agentic AI continues to align with what customers want most trusted enterprise-grade automation that delivers tangible ROI, fast. We've always believed that our approach to automation, agents and orchestration creates a durable competitive edge. This quarter's results reinforce the value of our platform and the improved execution from our teams we beat the high end of our guidance across all metrics, delivering third quarter's ARR of $1.782 billion up 11%, further reinforcing my conviction that our business is stabilizing and being driven by $59 million in net new ARR. Revenue was $411 million, an increase of 16%. Our disciplined approach to operational efficiency continues to strengthen profitability, resulting in our first GAAP-profitable third quarter while increasing non GAAP operating income to $88 million or a 21% margin. And we are on track to be GAAP profitable for the full year 2026 for the first time. The momentum we are seeing in the market isn't just in our results, it's in how customers and partners are engaging with UiPath. You could see that momentum in action at Fusion, where thousands of customers, partners and developers joined us in Las Vegas to see how Agenti is delivering measurable ROI. Today we showcased advancements across the UiPath platform, including new integrations with partners like OpenAI, Microsoft, Nvidia, Google and Snowflake and real Customer Stories where we had leading enterprises across key verticals sharing how they are transforming mission critical processes with Agentic automation. Customers tell us they get the most impact from a unified platform bringing together deterministic automation, agentic intelligence and process orchestration and we are seeing that play out as enterprises move quickly from pilots to production. Over 950 companies are developing agents and there have been more than 365,000 processes orchestrated with Maestro across our platform. A powerful example is one of the world's largest investment management firms which shows UiPath for Maestro's vendor agnostic architecture and ability to connect IT systems. They've already demonstrated measurable impact through multiple Agentic POCs integrating with ServiceNow, Confluence and specialized LLMs to orchestrate end to end workflows and delivering a 95% reduction in time to value and tens of millions in projected savings. With more than 260 automations. They expanded this quarter to increase their adoption of agentic automation and together with Aisling has identified over 40 high value use cases expected to generate more than $200 million in savings over the next few years. These stories demonstrate how our innovation is meeting customers where they are and helping them scale, and it's that customer energy that inspire many of the new capabilities we announced at Fusion. One of the Most exciting is UiPath screenplay where we are combining traditional RPA with the power of LLMs to build more reliable automations. Screenplay understands intent, builds multi step plans and executes them autonomously giving developers and business users a faster way to automate complex UI tasks. Our Screenplay technology is one of the best position in the computer use benchmark world of UI tasks. We are also helping customers move from pilot to production faster through continued enhancement to Agentic Builder, including a new visual canvas for debugging and optimization and reusable templates that make automation easier to scale. That focus on usability is driving real customer success. Great example is USI Insurance Services which selected UiPath because of our multi agent orchestration capabilities. Working with Ledonia, they are automating a complex workflow where UiPath agents and robots process incoming requests and generate outputs all orchestrated by Maestro. USI expects over $32 million in savings over the next three years. As more customers scale their AgentIQ automation programs. We're expanding what agents can do, especially in document heavy processes. This quarter we introduced Agenti capabilities to our intelligent extraction and Processing our Intelligent Extraction and Processing (IXP) product which delivers specialized extraction and validation agents that handle complex non deterministic scenarios and reduce manual review. And with UiPath Autopilot for IXP, customers can automatically generate document templates, saving hours of setup time per project. A great example is corewell Health which plans to leverage IXP to automate the processing of referral information into epic. In addition to improving efficiency and currency, they are on Track to redirect $1.5 million of labor savings this year and expect over $3 million next year. Story like this show how our innovation is helping customers turn manual document heavy work into intelligent automated processes and these strong results continue to earn us third party recognition. We were named a leader in the inaugural Gartner Magic Quadrant for Intelligent Document Processing which we believe highlights our capabilities for data and information extraction to help enterprises unlock value from their documents in the age of AI and agentic automation. We are also recently recognized as a leader in the Gartner Magic Quadrant for AI augmenting software testing tools which in our view validates our vision for agentic testing and the results our customers achieve with UiPath Test Cloud. One example is NRG Energy which adopted UiPath Test Cloud to address testing challenges across SAP and its digital apps. With agentic testing and autonomous self healing they expect 30% better coverage, 1.5 times faster cycles and almost $2.9 million in savings over three years. And lastly, we are proud to be recognized by Everest Group as both a leader and the star performer in the 2025 Intelligent Process Automation Platform and full suite IPA Peak Metrics assessment. This recognition underscores the strength of our end to end platform our innovation in agentic automation and AI integration and the tangible business impact we are delivering for customers. These recognitions highlight the strength of our unified platform, which connects every layer of automation from discovery to orchestration within a single governed system. They also reinforce what we hear directly from customers. The power of our platform comes from how it works together and at the center of that platform is Maestro, our orchestration engine. Maestro Gov. Beyond managing automations, it serves as the control plane for how work is orchestrated across the enterprise, powering through end to end automation at scale. A powerful example is the leading US managed care provider that is leveraging UiPath agents, robots and Maestro to tackle a backlog of more than 140,000 provider appeals. They automated the entire workflow using agents to classify forms, robots to handle processing and Maestro to orchestrate the process. The result is a Streamlined operation targeting 80% autonomy in year one. As Maestro becomes more deeply embedded in customer operations, we are continuing to enhance its capabilities with new features like case management and process apps. Case management helps customers model and manage long running processes, while process apps enable customers to build tailored end user experiences with real time visibility and actionable insights to drive proactive operational improvement. In order to realize the value of Agentic, customers need a strong foundation in deterministic and this quarter we announced the general availability of API Workflows which delivers API centric automations that complement RPA and agents. We believe this strengthens our position as one of the industry's most comprehensive automation platforms. We are continuing to expand our cloud footprint in important markets like Switzerland and at GITEX. We announced the launch of Automation Cloud in the uae. This expansion gives customers the ability to run automations, AI agents and orchestration in a secure, locally hosted environment that meets regional data residency and governance requirements. The power of our platform really comes to life when it's applied to industry specific challenges. We are focused on building vertical solutions that help customers accelerate our consistent ROI. The capabilities we gained through our peak acquisition earlier this year are extending these vertical capabilities by combining their industry leading pricing and inventory optimization technology with Maestro and our broader platform capabilities. We've created an agentic merchandising pricing and inventory solution with the Debenhams Group. We are taking this joint Agentic solution to market with other leading retailers and manufacturers, expanding the reach of our platform across key verticals. These industry solutions are just one way we are helping customers realize faster value. We're also enabling them through deep collaborations with global technology leaders. At Fusion, this collaboration came to life through new integrations including with Microsoft Azure AI Foundry, enabling UiPath agents to work seamlessly with Azure agents and models using model context protocol. UiPath expands integrations with Microsoft Copilot and empowers organizations with the trust and governance needed to run AI agents at scale. We announced a collaboration with OpenAI to deliver a ChatGPT connector, bringing OpenAI's Frontier models directly into enterprise workflows, simplifying AI agent development and accelerating time to value. We also launched a new conversational agent with Google's Gemini models, enabling natural voice driven automation without complex coding. Additionally, we introduced a new integration with Nvidia allowing organizations to enhance high trust workflows like fraud detection and healthcare with AI models deploy through Nvidia NVIDIA microservices. And finally, we partner with Snowflake to combine agentic automation with Snowflake Cortex AI, helping businesses turn data insights into fast autonomous action. While our technology partnerships expand what's possible with our platform, our Go to Market partners make that innovation real for customers. During the quarter we expanded our collaboration with Deloitte to help organizations accelerate how they build, test and release software. By combining the agentic testing capabilities of UiPath Test Cloud with Deloitte Ascend, we are transforming the testing lifecycle with agentic AI to automate repetitive tasks, detect changes and execute tests autonomously. And with Autopilot for Testers and Agentic Builder embedded in Ascend, Deloitte teams can leverage over 1500 pre built testing bots and AI agents. Lastly, we are encouraged by our federal sector performance this quarter where efficiency mandates are creating a long term tailwind for automation. Highlights this quarter include expansions with the US Coast Guard to modernize core systems and improve mission readiness through automation and AI the Department of Veterans affairs which is automating disability claims and enhancing contact service center service for veterans and the Social Security Administration which is migrating to the cloud to expand our IDP solutions to help accelerate benefits processing. Our unified platform and innovation continue to strengthen these partnerships and underscore the significant opportunity ahead in the public sector. Even as the federal government purchasing environment remains dynamic with pockets of strength.

Looking.

Ahead, our continued innovation is expanding what's possible for customers and delivering. measurable results through the power of deterministic and agentic automation. What continues to set UiPath apart is our unified end to end platform architecture delivering..