UiPath (PATH) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 FY26 reached $411 million, up 16% year-over-year, with ARR at $1.782 billion, up 11% year-over-year.

• Achieved first GAAP profitable third quarter, with GAAP operating income of $13 million and non-GAAP operating income of $88 million (21% margin).

• Net income for the quarter was $198.8 million, compared to a net loss of $10.7 million in the prior year quarter.

• Strong customer expansion, with 2,506 customers ≥$100K ARR and 333 customers ≥$1M ARR as of Q3 FY26.

• Recognized as a leader in Gartner Magic Quadrants and Everest Group assessments for intelligent automation and AI-augmented software testing.

Financial highlights

• Q3 revenue grew 16% year-over-year to $411 million; ARR reached $1.782 billion, up 11% year-over-year.

• GAAP gross margin was 83%; non-GAAP gross margin was 85%.

• Non-GAAP operating income was $88 million (21% margin), up from $49.7 million year-over-year.

• Net cash flow from operations for Q3 was $28 million; cash, cash equivalents, and marketable securities totaled $1.52 billion as of October 31, 2025.

• Dollar-based net retention rate was 107% as of October 31, 2025.

Outlook and guidance

• Q4 FY26 revenue guidance is $462–$467 million, with ARR expected between $1.844–$1.849 billion.

• Non-GAAP operating income for Q4 projected at approximately $140 million.

• Fiscal 2026 non-GAAP adjusted free cash flow expected at ~$370 million and non-GAAP gross margin at ~85%.

• No material top-line contribution from agentic AI expected in fiscal 2026.