UiPath Inc. (PATH) shares plummeted 5.74% in post-market trading on Wednesday, erasing gains made during the regular session. The sharp decline followed the company's release of its fourth-quarter fiscal 2026 financial results.

While UiPath reported quarterly revenue and earnings that surpassed analyst expectations, investor sentiment turned negative due to the company's outlook. For the upcoming fiscal year 2027, UiPath projected revenue growth of approximately 9%, a slowdown from the 13% growth achieved in the previous full year. Furthermore, the company forecast a significant sequential decline in non-GAAP operating income for the first quarter.

The guidance has raised concerns among investors about a potential deceleration in growth amid a challenging environment for software stocks, with broader industry worries about the disruptive impact of artificial intelligence on traditional business models.