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UiPath (PATH) Delivers Solid Q2 Results, Analyst Stays on Hold

UiPath Inc. (NYSE:PATH) is one of the AI Stocks Gaining Attention on Wall StreetOn September 5, Needham analyst Scott Berg reiterated a Hold rating on the stock. The rating affirmation follows PATH’s solid second-quarter results against conservative guidance.

The company’s customer retention (NRR) has stopped falling and is holding steady at 108%. This is a good sign after two years of precipitous decline, the firm noted.

Overall, Needham believes that growth may be slow in the near-term but new opportunities and PATH’s improving conditions suggests better times ahead.

“We are incrementally more positive on PATH shares after UiPath reported solid 2Q results against conservative guidance. PATH is showing early stabilization signs with NRR flat Q/Q at 108% after precipitously declining over the last two years. While net new ARR was down 30% Y/Y, guidance implies 2H improvements.”

“Similar volume-based companies in our coverage typically take multiple quarters to work through downsell dynamics before reaccelerating growth. Macro commentary remained steady while Fed spending has started to thaw, unlocking pent-up deal activity from recent quarters. Agentic automation remains key to product vision and early traction appears positive, the opportunity is unlikely to materially contribute to growth until 2HFY27. On guidance, PATH reported a decent raise after adjusting for incremental FX tailwinds.”

UiPath Inc. (NYSE:PATH) is a well-known software as a service (SaaS) enterprise that develops AI-powered automation platforms to help businesses transform their operations.

While we acknowledge the risk and potential of PATH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PATH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 Hot AI Stocks to Keep on Your Radar.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
  • 107 Amazons
  • 140 Metas
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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