UiPath Inc. Q3 FY2026 earnings call

• Strategic execution was strong with third quarter results beating the high end of guidance. ARR and revenue grew, and profitability improved with first GAAP profitable third quarter.
• Product innovation included UiPath Screenplay combining traditional RPA with LLMs, enhancements to Intelligent Extraction and Processing, and partnerships with tech leaders like OpenAI, Microsoft, NVIDIA, and Snowflake.
• Partnerships expanded with Deloitte to accelerate software building, testing, and release. Federal sector performance was positive with expansions like with the U.S. Coast Guard and Department of Veterans Affairs.
• Industry solutions were developed through acquisitions and collaborations, such as agentic merchandising pricing and inventory solutions with retailers and manufacturers.

Third quarter ARR was $1.782 billion, up 11%. Revenue was $411 million, an increase of 16%. GAAP operating income was $13 million in the third quarter, and non-GAAP operating income was $88 million, representing a 21% margin. Remaining performance obligations (RPO) increased to $1.265 billion, up 12%. Current RPO increased to $840 million, up 17%. Overall gross margin was 85%, and software gross margin was 91%.

• Fourth quarter 2026 revenue expected in the range of $462 million to $467 million. ARR in the range of $1.844 billion to $1.849 billion. Non-GAAP operating income approximately $140 million. Fourth quarter basic share count ~536 million shares.
• Fiscal year 2026 non-GAAP adjusted free cash flow expected ~$370 million and non-GAAP gross margin ~85%. Yen depreciation created a headwind to fourth quarter guidance.

Q: About the traction of agentic solutions, how is the situation from POC to production?

A: Seeing good momentum across AgenTeq offering with consistent buying patterns from POC to pilots to production. High ROI use cases are customer specific but there's progress from pilots to production.

Q: Impact of federal shutdown?

A: No direct impact as many projects are in critical operations and not affected by the shutdown.

Q: Driver of net new ARR growth in Q4?

A: Improved execution, new product launches, business stabilization and other factors contributing to net new ARR growth.

Q: Details of partnerships and pipeline build?

A: Technology enabling partnerships driven by customer needs, open platform allows flexibility. Pipeline build is in early stages but has positive signs.