Shares of UiPath (NYSE: PATH) fell on Friday after the automation specialist’s quarterly results failed to assuage investors’ fears regarding the threats posed by formidable new rivals.
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Orchestrating AI
UiPath’s revenue rose 13% year over year to $410 million in its fiscal 2027 second quarter, which ended on July 31. Its adjusted operating income, in turn, surged 43% to $89 million.
The business orchestration leader is helping its customers use artificial intelligence (AI) when it serves them best and other forms of automation when lower-cost options are better suited for the task.
During a conference call with analysts, CEO Daniel Dines said UiPath employs a simple strategy to accomplish these goals.
“Use AI where intelligence creates value and deterministic automation where exactness matters,” Dines said. “That gives customers the benefits of AI without paying for AI reasoning at every step, and ultimately, better economics and better ROI [return on investment] at scale.”
Risks remain
However, some analysts are concerned that AI-powered rivals could wrest business away from UiPath.
Canaccord Genuity analyst Kingsley Crane, for one, pointed to software giant Salesforce‘s recently announced partnership with leading AI model developer Anthropic as a potential threat.
“The competitive landscape is intensifying quickly, perhaps faster than reported numbers are capable of showing,” Crane said.
Crane, in turn, downgraded UiPath’s stock from buy to hold.
Still, Dines remains undaunted.
“AI is expanding what enterprises can automate, while increasing the need for the orchestration, governance, and exactness that deterministic automation provides,” Dines said. “Our ability to bring AI agents, robots, systems, and people together to execute end-to-end business processes positions UiPath at the center of this opportunity.”
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