Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $410 million | up 13% year-over-year |
| ARR | $1.938 billion | up 12% year-over-year |
| Non-GAAP Operating Margin | 22% | up over 400 basis points year-over-year |
| GAAP Operating Income | $32 million | up from $20 million loss year-over-year |
| Net New ARR | $37 million | up from $31 million in the prior year quarter |
Guidance and outlook
- For Q3 FY2027, the company expects revenue of $440 million to $445 million and ARR of $1.992 billion to $1.997 billion.
- For full fiscal year 2027, the company expects revenue of $1.789 billion to $1.794 billion and ARR of $2.065 billion to $2.070 billion.
- The company expects full year 2027 non-GAAP adjusted free cash flow of approximately $425 million.
How management sounded
Positive (+6 on our -10 to +10 scale). Management beat guidance on both top and bottom lines, reported GAAP profitability for the fourth consecutive quarter, and highlighted strong customer adoption of AI-integrated automation. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Coding Agents and Implementation
Asked: How much capacity are coding agents adding per FTE, and does this change hiring plans?
Answer: Management stated they are in a proof-of-concept stage with encouraging initial results, focusing on how these tools accelerate customer time-to-value rather than changing hiring plans.
AI Monetization
Asked: How are tokenomics influencing contracting appetite for deals?
Answer: Management noted that customers want a platform combining intelligence with exactness, and UiPath remains model-agnostic, providing the orchestration rails while letting customers choose their preferred AI model.
Sales Execution
Asked: What is driving the improved sales execution and how are you incentivizing AI product adoption?
Answer: Management attributed improvements to experienced leadership in market units, better cross-functional connectivity, and selective use of sales incentives like quota uplifts to drive adoption.
Competitive Landscape
Asked: How do you view the threat of frontier AI models improving at tasks?
Answer: Management argued that enterprises need a map of work and orchestration that sits on their own property, as AI models cannot learn on the job like employees and require a deterministic framework to be reliable.
What to watch before the next call
- The upcoming Investor Day on September 22 and Fusion user conference from September 23 to 25.
- The transition of Hitesh Ramani to CFO and Ashim Gupta focusing exclusively on the COO role.
- Continued adoption of agentic and deterministic automation workflows by enterprise customers.
