UiPath Slides 24% After Q2 Earnings: Is PATH Stock a Buy?

PATH shares fell 24% after the company reported second-quarter fiscal 2027 results that beat revenue estimates and raised full-year guidance. The automation software maker posted 12.5% annual recurring revenue growth and notched its fourth consecutive quarter of GAAP profitability. Artificial intelligence features appeared in 18 of the company's 20 largest deals during the quarter.

The selloff came despite the earnings beat, with investors reacting negatively to modest third-quarter guidance and restrained ARR growth projections. Zacks Investment Research analysts maintained a Buy rating on the stock following the decline, citing the post-earnings drop as an opportunity for long-term investors willing to ride out near-term volatility.

The company's sustained GAAP profitability marks a shift from earlier cash-burn concerns, while the AI-driven deal activity signals traction in higher-value enterprise contracts. However, the market's focus on forward guidance over current results underscores sensitivity to growth deceleration in the robotic process automation space.