UiPath (PATH) stock plummeted over 7% in Friday's pre-market trading session, despite the company reporting better-than-expected earnings results for its fiscal third quarter of 2025. The stock plunge appears to be driven by the company's guidance for the upcoming fourth quarter, which fell short of analysts' expectations, raising concerns about slowing growth prospects.
For the third quarter ended October 31, UiPath reported non-GAAP earnings of $0.11 per share, surpassing the consensus estimate of $0.07. Revenue climbed 8.8% year-over-year to $354.7 million, also beating forecasts of $347.6 million. The company's leadership highlighted strong customer response to its agentic automation vision and efforts to improve efficiency and prioritize customer-centric strategies.
However, the company's guidance for the fourth quarter dampened investor sentiment. UiPath projected revenue in the range of $422 million to $427 million for the upcoming quarter, while analysts were anticipating $423.8 million. This muted outlook likely raised concerns about slowing growth prospects, triggering the pre-market sell-off.
Despite the disappointing guidance, UiPath's third-quarter results showcased the company's improving execution and the compelling value that its AI-powered automation platform delivers to customers. During the earnings call, UiPath unveiled its vision and road map for "agentic Automation," which it believes will mark a consequential product launch and expand the surface area of automation within companies.
UiPath reported strong customer interest in its agentic Automation offerings, with over 1,000 organizations already registered for the private preview. The company believes that its ability to orchestrate agents, robots, and humans in a secure and governed environment will differentiate it in the agentic automation era.
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