UiPath (NYSE: PATH) shares surged 10.43% in after-hours trading on Thursday following the release of its first-quarter fiscal 2026 financial results, which exceeded analyst expectations. The robotic process automation company reported impressive growth in revenue and key performance metrics, signaling strong demand for its AI-powered automation solutions.

The company reported Q1 revenue of $357 million, surpassing the IBES estimate of $332.9 million. Adjusted earnings per share came in at $0.11, beating the consensus estimate of $0.10. UiPath's annualized recurring revenue (ARR) reached $1.693 billion, representing a 12% year-over-year increase. The company's adjusted operating income was $70 million, significantly higher than the IBES estimate of $44.7 million.

UiPath's strong performance was further underscored by its robust gross margins, with the adjusted gross margin reaching 84%. The company also provided an optimistic outlook for the second quarter, projecting revenue between $345 million and $350 million, and ARR between $1.715 billion and $1.720 billion by July 31, 2025. This guidance suggests continued growth and market expansion for UiPath's automation platform, which has been gaining traction among enterprises seeking to improve operational efficiency through AI and robotics.