On September 22, UBS cut its price target on UiPath, Inc. (NYSE:PATH) from $19 to $15 and kept its Neutral rating on the stock. This update comes after the company’s investor day and investor reception in Las Vegas.
UBS noted that the company did not provide preliminary fiscal 2028 annual recurring revenue (ARR) guidance. The firm said the absence of a fiscal 2028 ARR outlook suggests the company is comfortable with current Street estimates of roughly 10% ARR growth for the year.
We recently examined whether UiPath’s 12% ARR growth is enough to support the stock. Read More Here: UiPath (PATH) Grew ARR 12% as Net Retention Rate Reached 109%. Can Agentic Automation Reaccelerate Expansion?
Still, UBS pointed out that UiPath, Inc. sounded more upbeat at the investor reception after the event. The firm is particularly interested in whether the company can see a boost in near-term revenue and ARR from faster conversion of existing automation backlogs by customers using UiPath for Coding Agents.
RBC Capital also reduced its price target on UiPath, Inc., cutting it from $17 to $15 while keeping its Sector Perform rating. The research firm sees UiPath, Inc. as a “show-me story,” with the firm looking for evidence of improved results.
The company’s latest results provide some support to the company’s growth story. In Q2 fiscal 2027, revenue increased 13% year-over-year to $410 million, while ARR rose 12% to $1.938 billion as of July 31, 2026. UiPath, Inc. also generated $37 million in net new ARR during the quarter.
The company continues to see strong growth among its largest customers. UiPath, Inc. ended the quarter with approximately 10,350 customers, with attrition remaining concentrated among its smallest customers. Customers generating more than $30,000 in ARR grew 6% year-over-year.
Growth was stronger among the company’s largest customers. Customers with at least $100,000 in ARR increased 10% to 2,666, while customers generating $1 million or more in ARR increased 21% to 387.
However, the company’s increasing reliance on large enterprise customers adds to the bearish case. Customers with at least $1 million in ARR accounted for 50% of current-period revenue, although no single customer accounted for 10% or more of total revenue. At the same time, the company continues to face intense competition in agentic automation from established software vendors and emerging startups, which could make it difficult for UiPath, Inc. to accelerate growth and expand within these key accounts.
Short interest also remains relatively high. As of August 31, short interest stood at 25.56% of UiPath, Inc.’s float, indicating that bearish positioning in the stock is high.
Hedge Fund Interest
However, hedge fund interest in the stock increased during the second quarter. According to Insider Monkey‘s database, 48 hedge funds held UiPath, Inc. at the end of the second quarter, up from 40 in the first quarter.
The bullish case for UiPath, Inc. rests on its ARR growth, expanding base of large enterprise customers, and the potential of Coding Agents accelerating the conversion of existing automation backlogs. However, the lack of a preliminary fiscal 2028 ARR outlook leaves many investors in a “wait-and-see” position until newer product adoption becomes clear. Additionally, customer concentration and intense competition in agentic automation highlight the uncertainty around the company’s ability to accelerate growth.
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