UiPath spent most of the year as one of the biggest software disappointments. Now the Romanian-founded automation firm is pulling back. The reason for this is the first profit and the comprehensive bet on AI agents.
Shares in UiPath have rebounded in recent weeks. They have risen nearly 15 percent in the past five days, pushing their market value back up to $6 billion. That still leaves the stock well below where most analysts think it belongs. It is also rising from its 52-week low near $9. But the mood has changed and the numbers have started to turn around.
UiPath in the quarter until the end of April informed It earned $418 million, which is 17 percent more than the previous year. The result was more interesting. It posted a GAAP operating profit of $28 million, its first profit in the first quarter since a loss a year earlier.
This is a milestone for a business that has been accustomed to losses for a long time. Year-over-year recurring revenue rose 12 percent to $1.9 billion, beating the company’s own guidance for the quarter.
From robots to agents
There is a strategic twist behind the numbers. UiPath made its name in robotic process automation, software robots that perform repetitive office tasks. AI is now threatening that market, so the company is repositioning itself around agents.
Its pitch should be a control layer for AI agents. He wants to help large firms deploy and manage agents at scale. This includes coding agents such as Claude Code and OpenAI tools that run on systems that firms already use.
The strategy is based on both deals and products. Recently acquired by UiPath WorkFusionan expert in artificial intelligence agents for financial crime compliance, to further deepen banking. Analyst house Forrester also called UiPath a leader in one of its enterprise reports. It is a useful seal when selling to cautious corporate buyers.
Wall Street isn’t sold yet
The analyst community remains divided. Needham raised UiPath to buy, citing the enterprise’s application of artificial intelligence. Others are protected. Bank of America maintains an underperform rating even after raising its price target. He calls UiPath a “show me” story until recurring revenue grows faster. Morgan Stanley sits on the fence with an equal weight rating. Consensus stands.
This caution reflects a larger question about the sector. Let’s say AI agents can write and run programs themselves. Does the dedicated automation vendor still matter, or is it just being swallowed up by the big model manufacturers?
UiPath’s response echoed that founder Daniel Dinesenterprises will still need a trusted layer to manage people, AI and automation together. It claims to be exactly what it sells.
UiPath is one of them Europe’s biggest software success stories. It was founded in Bucharest and listed in New York in 2021 at a valuation of $35 billion. It’s worth about $6 billion today, a fraction of that. The latest bounce doesn’t undo a tough year. But for the first time in a while, the company has profits, a clearer story and a market willing to listen.
as competitors SAP they compete through the same agent, and the prize is awarded to the person whom the enterprise trusts to manage it.
