UiPath (NYSE: PATH) shares surged 10.90% in a 24-hour period following the release of its impressive first-quarter fiscal 2026 financial results. The robotic process automation leader significantly outperformed analyst expectations, demonstrating strong growth and improved profitability.

For the quarter ending April 30, 2025, UiPath reported revenue of $357 million, marking a 6% increase year-over-year and handily beating the consensus estimate of $332.9 million. The company's earnings per share came in at $0.11, surpassing analyst projections of $0.10. Notably, UiPath's Annualized Recurring Revenue (ARR) grew by 12% year-over-year, reaching $1.693 billion.

UiPath's CEO, Daniel Dines, expressed satisfaction with the quarter's performance, highlighting the ARR growth and strong financial metrics. The company's adjusted gross margin improved to 84%, while adjusted operating income reached $70 million, significantly exceeding the expected $44.7 million. These results underscore UiPath's ability to drive growth while maintaining profitability in the competitive automation market.

Adding to investor enthusiasm, UiPath raised its fiscal 2026 revenue forecast to a range of $1.549 billion to $1.554 billion, up from the previous guidance of $1.52 billion to $1.53 billion. The company also provided optimistic guidance for the second quarter, projecting revenue between $345 million and $350 million, further fueling confidence in UiPath's growth trajectory.

The strong performance and positive outlook were bolstered by the launch of UiPath's new agentic automation platform, which the company described as a "meaningful step forward" in its product evolution. The early positive response from customers and partners underscores the growing interest in agentic automation as a key component of enterprise digital transformation strategies.