UiPath faces threat from agentic AI as it seeks to turn the challenge into an advantage.

Agentic artificial intelligence—software that can make decisions and perform tasks on its own—is increasingly viewed as the next phase of AI adoption. Nvidia CEO Jensen Huang has described it as an “inflection point,” while an International Business Machines survey of business executives projects that fully autonomous robotic systems could be operational by the end of the decade across multiple industries.

Against that backdrop, UiPath has faced a difficult market environment. The stock is down 87% from its all-time highs, and it fell more than 35% in 2026 alone. The question for investors is what is driving the decline and whether the company has a credible path to recovery.

UiPath’s business and the pressure from mainstream AI

UiPath, based in New York, develops software designed to automate repetitive office tasks such as entering data, moving files, processing transactions, and updating systems. The company positions its platform as an end-to-end system where users can run and manage software “robots” in a single place.

While the automation model appeals to companies seeking operational efficiency, the rise of mainstream AI—accelerated after OpenAI launched ChatGPT in November 2023—has changed how businesses approach everyday tasks. As agentic AI expands, UiPath faces increased competition for its Robotic Process Automation (RPA) software.

Market performance

UiPath’s stock performance reflects investor caution. At the time of reporting, the shares were trading at $11.24, with a reported daily change of 2.00% (up $0.22).

Company response: shifting toward agentic AI and orchestration

UiPath says it is not standing still. The company is working to evolve its platform so it can manage both AI agents and software bots. CEO Daniel Dines said: “By bringing deterministic automation, agentic AI, and enterprise-grade orchestration together on a single platform, UiPath provides the execution layer enterprises trust to run mission-critical processes in the agentic era.”

Recent financial results and guidance

UiPath reported growth in its latest quarter. Revenue in the fourth quarter of fiscal 2026 (ended Jan. 31) was $481 million, up 14% year over year. Net income was $104.5 million, compared with $51.8 million a year earlier.

The company also highlighted recurring revenue momentum. Annual recurring revenue (ARR) was $1.85 billion, up 11% from a year ago.

In addition, UiPath stated that net income turned positive over the last 12 months. For fiscal 2027, the company projected full-year revenue of $1.75 billion, up from $1.61 billion in fiscal 2026.

Outlook and investor debate

Despite the company’s efforts to reposition around agentic AI, analysts cited in the article do not expect a major recovery in the near term. The consensus price target referenced from Yahoo! Finance is $13.81, representing about a 24% gain from the stock price at the time of writing.

The article concludes that, while growth in autonomous agents may continue, it does not view UiPath as well positioned to capture that opportunity, and it characterizes the potential upside as insufficient to justify buying the stock.