1 Reason UiPath Stock Could Beat the Market in 2026
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This AI stock is poised for a monster rally.After falling significantly from its highs over the past few years, UiPath (PATH 3.38%) shares have climbed 55% in the last three months. The robotic process automation software developer could be positioned for a breakout year, as interest in agentic artificial intelligence (AI) continues to grow. In the recent earnings report, management gave positive guidance on the company's path to profitability, which serves as a significant catalyst for the stock next year. Image source: Getty Images. Why UiPath stock could soar next year UiPath is delivering solid growth, with revenue up 16% year-over-year last quarter. The company credited the growth to customers increasing their use of agentic automation across their operations. However, the real catalyst for the stock in the near term will be the company's improvement in profitability. The point at which an unprofitable company becomes profitable can significantly impact its stock price. On that note, UiPath just reported its first profitable third quarter. ExpandNYSE: PATHUiPathToday's Change(-3.38%) $-0.61Current Price$17.42Key Data PointsMarket Cap$9.3BDay's Range$17.23 - $18.0952wk Range$9.38 - $19.84Volume17MAvg Vol26MGross Margin83.16% Furthermore, management stated that it is on track to turn a profit for the whole year in 2026, marking a notable increase in operating efficiency. With the stock trading at a significant discount to its previous peak, this AI stock is poised to rebound in 2026 and potentially outperform the broader market. In the longer term, investors are looking at 400% upside if the stock eventually returns to its all-time high of $90 per share.About the AuthorJohn Ballard has been a contributing writer at The Motley Fool since 2016, covering consumer goods and technology stocks. He holds a bachelor’s degree in business administration with a focus in real estate finance from the University of Arkansas at Little Rock.TMFRazorbackRead NextDec 11, 2025 •By Geoffrey SeilerInvestors Are Piling Into Palantir, but This AI Competitor Might Outperform It in 2026Dec 11, 2025 •By Parkev Tatevosian, CFAShould Investors Buy UiPath Stock Before 2026?Dec 7, 2025 •By Geoffrey SeilerUiPath Shares Surge.
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