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UiPath (PATH -14%) is forecasting a bumpy road ahead, to say the least, creating anxiety and spurring all-time lows today. The robotic process automation software developer warned of a significant uptick in volatility across the macroeconomic landscape in recent weeks. When speaking with customers, PATH has found that the external environment has generated outsized uncertainty around budgeting plans. To add to this headache, FX rates have fluctuated wildly over the past week. PATH also expects growth in its SaaS offerings to act as a 2 pt headwind to FY26 (Jan) sales growth as customers move more workloads to the cloud and adopt AI products.

Incorporating these events, PATH found it necessary to inject prudence into its guidance, believing it appropriately factored in all current macro trends. As a result, PATH projected Q1 (Apr) and FY26 revs markedly below consensus, estimating $330-335 mln and 1.525-1.530 bln, respectively, while targeting annualized recurring revenue (ARR) of $1.816-1.821 bln for the year, a disappointing 9% yr/yr increase at the midpoint.

• Given PATH's outlook, little attention was paid to the few silver linings from Q4 results. PATH registered adjusted EPS of $0.26, its best quarter as a public company, supported by a 400 bp jump in non-GAAP operating margins yr/yr to 32%. Additionally, PATH achieved GAAP profitability for the second straight year in FY25.
• PATH also announced the acquisition of Peak, an AI firm that optimizes product inventory and pricing for businesses. Given that PATH's software suite looks to automate processes for companies, from aligning resumes with current job openings to sending emails and building spreadsheets based on incoming data, Peak's AI platform is a good fit. By leveraging Peak's technology, the acquisition should also help enhance PATH's current AI-powered offerings. No financial details were disclosed, however.
• Unfortunately for PATH, the upsides stopped there. Revenue growth continued to slow in Q4, edging just 4.6% higher yr/yr to $424 mln following an +8.8% increase last quarter. Even worse, ARR grew by just 14% to $1.666 bln, under the company's $1.669-1.674 bln forecast. Management attributed the miss to the government transition beginning in January, which affected deal closures. CEO Daniel Dines acknowledged that as the government works through priorities, it can impact performance in the short term, hindering ARR growth in 1H26.
• Still, management remains optimistic about the foundation it is constructing to realize long-term gains. For the year, PATH is focused on three primary initiatives: accelerating its agentic (AI agents) roadmap, bolstering adoption, and extracting further organizational efficiencies.

PATH's Q4 report highlighted how quick the macroeconomic picture can change. Its software can still be a game-changer for organizations seeking ways to trim costs without losing productivity. However, elevated volatility may keep investors away from the stock over the near term as they digest continuously impactful headlines and the potential effects administrative policies, like tariffs, could have on the spending environment.