Morgan Stanley Upgrades UiPath (PATH) Following Strong FQ3 2026 Earnings Beat and Profitability Milestone

UiPath Inc. (NYSE:PATH) is 1 of the AI stocks nether $20 to bargain now. On December 9, Morgan Stanley expert Sanjit Singh raised the firm’s terms people connected UiPath to $19 from $15 with an Equal Weight standing connected the shares. This sentiment was posted aft the steadfast adjusted estimates and valuations among its bundle coverage, which followed the company’s beardown FQ3 2026 net report.

In FQ3, UiPath Inc. (NYSE:PATH) reached a historical milestone by reporting its first-ever GAAP profitable 3rd quarter, with a GAAP operating income of $13 million. Total gross grew 16% year-over-year to $411 million, exceeding the precocious extremity of its erstwhile guidance. The company’s ARR reached $1.78 billion, which was an 11% summation from the anterior year, supported by $59 cardinal successful nett caller ARR during the quarter. Customer retention remained high, with a dollar-based gross retention complaint of 98% and a nett retention complaint of 107%.

UiPath continues to modulation from accepted Robotic Process Automation/RPA toward an Agentic AI platform. The institution highlighted caller exertion integrations with OpenAI, Microsoft, NVIDIA, Google, and Snowflake. A cardinal improvement is the integration with Microsoft Azure AI Foundry and a caller collaboration with OpenAI to physique a ChatGPT connector for endeavor workflows. These initiatives are designed to assistance customers orchestrate analyzable multi-agent systems. Industry designation supported this strategy, arsenic Gartner named UiPath a person successful some Intelligent Document Processing and AI-augmented bundle testing.

For FQ4 2026, UiPath expects gross to scope betwixt $462 and $467 million, contempt an estimated $3 cardinal headwind from currency fluctuations. ARR is projected to scope betwixt $1.844 and $1.849 cardinal by January 31, 2026.

UiPath Inc. (NYSE:PATH) provides an end-to-end automation level that offers a scope of robotic process automation/RPA solutions chiefly successful the US, Romania, the UK, the Netherlands, and internationally. Its level comes embedded with AI, ML, and NLP capabilities.

While we admit the imaginable of PATH arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.