UiPath Inc. Q2 FY2026 earnings call

• Progress in execution is evident in platforms, innovation, customer outcomes, and financial results. Automation and AI are stronger together, with deterministic RPA, API automation, AI capabilities (IDP, AgenTiC), and orchestration (UiPath Maestro) driving tangible ROI.
• Second-quarter results exceeded guidance across key metrics: ARR grew 11% to $1.723B, revenue $362M (+14% YOY). Non-GAAP operating income increased to $62M, 17% margin, up 2,500 basis points YOY.
• Go-to-market rebuilt for scale, adding sales capacity and specialists, with higher quality pipeline, better forecasting, and larger multi-solution opportunities. Over 95% of new logos included core automation capabilities. Large installed base sees momentum from AI and Agenty capabilities.
• Introduced initiatives to support agentic automation adoption: forward-deployed engineers, UiPath playground. Extended platform with API workflows, UiPath Coded Agents, UIPub Data Fabric, and iXp launched into GA.
• Partnerships with Microsoft, Deloitte, and leading technology platforms strengthened. Upcoming UiPath Fusion user conference in Las Vegas.

Second-quarter ARR grew 11% to $1.723 billion, driven by $31 million in net new ARR. Second-quarter revenue was $362 million, an increase of 14% from the prior year period. Cloud ARR totaled more than $1.080 billion, an increase of more than 25%. Dollar-based gross retention remained best in class at 98%, and dollar-based net retention rate was 108%. AI and GenTiC solutions represent a growing share of commercial activity.

• Third fiscal quarter 2026: Revenue $390M-$395M, ARR $1.771B-$1.776B, non-GAAP operating income ~$70M, basic share count ~532M.
• Full fiscal year 2026: Revenue $1.571B-$1.576B, ARR $1.834B-$1.839B, non-GAAP operating income ~$340M, non-GAAP adjusted free cash flow ~$370M, non-GAAP gross margin ~85%.

Q: Brian Bergen asked about client demand progression on intent to solutions, specifically pacing from POCs/pilots to production and mix of clients developing agents.

A: Daniel Dines said progress is encouraging with 450 customers actively working with technology, and deals uncover more automation opportunities. Ashim Gupta added AgenTic platform naturally increases deal sizes as it reinforces need for deterministic automation.

Q: Brian Bergen followed up on DBNR stability.

A: Ashim Gupta said they're stabilizing, assuming a prudent outlook on macroeconomic environment with government returning to normal buying behavior.

Q: Jake Roberge asked about key pitch for Maestro and who is seeing most in deals.

A: Daniel Dines said key pitch is agnostic approach, integrating orchestration, automation, and agentic, with platform breadth making it compelling.

Q: Jake Roberge asked about health of go-to-market motion.

A: Daniel Dines said go-to-market is stable, closer to customer, working closely with product, and functioning well.

Q: Austin Williams asked about U.S. Federal business performance and navigating uncertainty.

A: Ashim Gupta said public sector had good quarter with momentum in selling AgenTeq, signs of stabilization, recent wins with VA and Coast Guard.

Q: Mike Richards asked about reception to pricing of AgenTeq portfolio.

A: Daniel Dines said monetizing through consumption-based model, reaction is positive and well understood.

Q: Sanjit Singh asked about stability of go-to-market organization and new ARR inflection.

A: Ashim Gupta said commercial activity in pilots/POCs reinforces upsell opportunities, field is empowered and customer-centric, comfortable with guidance.

Q: Keith Bachman asked about ARR from existing customers vs new logos and AgenTiC contribution.

A: Ashim Gupta said AgenTiC will contribute more, and existing customer growth is expected to improve with momentum, but specific guidance on FY '27 not given.

Q: Devin Ah asked about ARR guidance baking in prudence for U.S. public sector.

A: Ashim Gupta said they're baking in prudence but see more contribution from U.S. public sector due to stabilized environment