By Adam Clark

UiPath was surging on Thursday as the market gained confidence that the automation-software company will be one of the beneficiaries of the artificial-intelligence boom.

UiPath shares were up 16% at $17.24 in morning trading after its third-quarter earnings and revenue beat expectations late Wednesday. The company looks to be brushing off previous concerns about cuts to government spending and AI competition.

"We are encouraged by UiPath's solid execution on its recent product and go-to-market initiatives, which we believe position the company well for enterprise AI adoption over the next few years," wrote William Blair analyst Jake Roberge in a research note, maintaining a Market Perform rating on the stock, with no price target.

UiPath is aiming to dispel concerns that the growth of AI will undermine the sales case for its "robotic process automation" technology, designed to automate repetitive information tasks, and it has launched its own suite of AI products. It has struck partnerships with companies including ChatGPT-developer OpenAI and Nvidia to integrate their technology into its platform.

It looks to be having some success, with the company's annualized recurring revenue standing at $1.782 billion as of Oct. 31, up 11% from the same period a year ago.

"We are incrementally positive towards UiPath given the improved stability in the business but with revenue contribution from new products still early we stay on the sidelines," wrote D.A. Davidson analyst Lucky Schreiner, who raised his target price to $15 from $12 but kept a Neutral rating on the stock.

The company posted adjusted earnings per share of 16 cents, compared with an estimated 15 cents a share among analysts polled by FactSet. Revenue climbed 16% to $411.1 million, topping estimates for $392.7 million.

For the current quarter, the company expects sales of $462 million to $467 million. Analysts had projected sales of $463 million. UiPath expects annualized recurring revenue in the range of $1.844 billion to $1.849 billion as of Jan. 31, 2026.

Write to Adam Clark at adam.clark@barrons.com

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December 04, 2025 10:47 ET (15:47 GMT)

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