PATH reports Q1 revenue above expectations but sees net-new ARR growth decline 32% quarter-over-quarter, fueling competition worries.
UiPath (PATH) shares rose 1% after reporting fiscal first-quarter results that exceeded revenue expectations and prompted raised guidance. The company’s performance was described as “good” by analysts, though gross margins faced pressure from AI investments and rising competition from major IT suppliers.
Net-new annual recurring revenue (ARR) growth fell 32% quarter-over-quarter, raising doubts about a sustainable acceleration. Analysts noted that while the quarterly beat was positive, it is unlikely to shift broader investor sentiment amid concerns over decelerating growth and competitive threats.
Oppenheimer maintained its Perform rating on PATH without adjusting its price target, reflecting cautious optimism. The focus remains on whether the company can stabilize and reaccelerate ARR growth in the coming quarters.