UiPath: Further Upward Re-Rating Is Overdue
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Gary Alexander32.82K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryUiPath offers attractive AI automation exposure at a compelling valuation, with shares up ~35% YTD and strong Q3 results fueling momentum.PATH trades at 4.6x EV/FY27 revenue and 18.3x EV/FY27 FCF, supported by double-digit growth and significant operating margin expansion.Management guides for FY26 revenue of $1.59B (+11% y/y) and a 22.6% adjusted operating margin, highlighting robust profitability improvements.I reiterate a buy rating on PATH, emphasizing its scalable model, expanding ARR base, and favorable risk/reward in the AI automation space. Krot Studio/iStock via Getty Images As we look ahead to 2026, investors have a difficult conundrum to process. The world of growth stocks largely converges around a single theme: AI and automation. And yet, concerns are beginning to emerge around the profitability of theseThis article was written byGary Alexander32.82K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PATH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You