UiPath (NYSE: PATH) shares fell sharply following its Q4 FY2025 earnings report. It is now down over 14.4%, and investors are quite confused about where this stock could go next. Robotics is an up-and-coming industry, and UiPath is a key software supplier.
The recent decline has knocked PATH stock lower than it has ever been. Here’s what you need to know:
UiPath reported mixed Q4 results. Revenue came in at $424 million, up 5% year-over-year, but missed consensus estimates by $1.3 million.
Annual recurring revenue (ARR) of $1.666 billion also fell short of analyst expectations despite growing 14% year-over-year.
The company’s guidance for FY2026 came in at $1.525 billion to $1.53 billion in sales. This implies just 6.8% growth and below consensus estimates.
These misses sent the stock significantly lower.
Considering PATH stock is trading near historically low prices, it may make sense to buy the dip for a long-term position. However, the near term is still risky. It is seen as an AI stock, and as the broader AI sector corrects, it will drag down PATH stock with it.
The consensus price target of $16.78 implies a 69.05% upside potential from here.
That said, the recent miss will also lead to some downgrades. It has 15 “Hold” ratings, 2 “Sell” ratings, and 2 “Buy” ratings. PATH stock still trades at over 22 times forward earnings with single-digit growth, so PATH seems more or less fairly valued now.
