BofA Maintains Underperform on UiPath (PATH) Despite Improved Q1 Execution

On May 30, Bank of America Securities analyst Bradley Sills raised his price target on UiPath Inc. (NYSE:PATH) to $12 from $10, while reiterating an Underperform rating on the stock. According to him, the upward revision in the price target reflects improved near-term execution, as evidenced by the company’s Q1 FY 2026 performance.

Sills was encouraged by UiPath’s Q1 results which were announced on May 29. The results indicated greater operational stability, which marked a positive shift following recent volatility related to the company’s restructuring efforts and changes in its go-to-market strategy. In a significant step towards product evolution, the company launched the first enterprise-grade platform for agentic automation in the quarter.

A view of a control room with video screens monitoring multiple sites through intelligent automation.

However, despite the short-term progress, Sills maintains a cautious stance on the stock and his Underperform rating reflects continued concerns over broader secular challenges facing the company.

Investors have recently raised concerns over UiPath’s long-term demand growth and its competitive positioning. While Q1 results exceeded expectations, the company’s growth trajectory remains a concern, considering the growth deceleration seen in recent quarters. Annual recurring revenue (ARR) growth for Q1 came in at 12%, compared to 14% in Q4 and 17% in Q3 2025 (FY ends in January). This slowdown has raised concerns among investors about the sustainability of recent performance improvements.

In addition, broader macroeconomic uncertainty and its impact on enterprise spending may continue to weigh on UiPath’s growth outlook.

UiPath Inc. is a software company that develops robotic process automation (RPA) and agentic automation solutions.

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Disclosure: None.