Investing.com -- UiPath Inc shares slumped more than 18% in premarket trading Thursday after the automation software company issued a weaker-than-expected revenue forecast for fiscal 2026.
But the company reported fourth-quarter revenue of $424 million, slightly below analysts’ estimates of $425.27 million.
Adjusted earnings per share came in at $0.26, beating expectations of $0.20.
UiPath (NYSE:PATH) forecast revenue between $330 million and $335 million, for the first quarter, which was well below the consensus estimate of $367.4 million.
Its full-year revenue outlook of $1.525 billion to $1.53 billion also missed Wall Street’s projection of $1.59 billion.
Annualized recurring revenue (ARR) is projected to reach $1.686 billion to $1.691 billion in Q1 and $1.816 billion to $1.821 billion by the end of fiscal 2026.
The company expects non-GAAP operating income of approximately $45 million for Q1 and $270 million for the full year.
D.A. Davidson analysts said UiPath’s quarterly results "introduced new uncertainties to the business, stemming from U.S. Federal customers but ultimately permeating private sector spending decisions as well."
They said the company’s full-year guidance "implies an unusually weak" first half (1H) of fiscal 2026, but nonetheless depends upon a strong reacceleration in 2H to reach 9% ARR growth."
Separately, Bank of America (NYSE:BAC) analysts downgraded UiPath shares after the print and lowered their price target to $10 from $18 due to a "disappointing FY26 outlook."
"While the stock trading at 2.7x C26e revenue presents limited downside risk, we see few near-term catalysts," they noted.
Pratyush Thakur contributed to this report.