UiPath's stock plummeted 6.45% during intraday trading on Tuesday, as the company continues to face selling pressure following its recent earnings report and amid a broader decline in the software sector.

The primary driver behind the sharp decline is the company's fiscal first-quarter earnings report, which showed adjusted earnings per share of $0.15, missing the analyst consensus estimate of $0.16. Despite reporting revenue that exceeded expectations, the earnings shortfall has raised concerns about near-term profitability and continues to weigh on market sentiment.

Compounding the pressure is a broad sell-off in the Systems Software sector, creating an unfavorable industry backdrop. This sector-wide weakness, evidenced by declines in peers, added to the downward momentum for UiPath's shares during the trading session.