Business automation software company UiPath Inc. beat expectations for its third-quarter financial results today and followed up with strong guidance for the current quarter.

The company reported adjusted earnings of 16 cents per share, just edging past Wall Street’s consensus estimate of 15 cents, while revenue rose 16%, to $411.1 million, crushing the analysts’ forecast of $392 million. Annual recurring revenue was also boosted, rising 11% from a year earlier, to $1.78 billion, as the company landed new long-term deals worth $59 million.

UiPath’s stock rose more than 7% in extended trading on the strong results and its solid guidance. For the current quarter, the company is forecasting revenue of between $462 million and $467 million, ahead of the Street’s target of $463.3 million.

Chief Executive Daniel Dines (pictured) said the company is gaining momentum as customers accelerate their artificial intelligence automation strategies, where its software plays a pivotal role for them. “Our results are a testament to the team’s focus, consistent execution and the momentum we are seeing as customers scale agentic automation across the enterprise,” he said.

The company made significant gains in terms of profitability during the quarter, too. For the first time, it ended the quarter with a positive operating income of $13 million, while its net income rose to $198.8 million, up from a $10.7 million loss in the year-ago period.

UiPath made its name as a pioneer of robotic process automation, selling tools that can help businesses to lower costs and reduce operational errors by automating repetitive tasks such as data entry. This technology is powered by AI models that study how employees perform common tasks, such as data entry, so they can replicate that work with no mistakes.

More recently, it has turned its attention to more sophisticated AI agents, sometimes known as “digital laborers,” which employ large language models to perform more complex tasks on behalf of users with minimal supervision. The company is particularly focused on agentic orchestration, selling software that allows enterprises to manage and secure large fleets of AI agents.

During the quarter, UiPath held its annual customer conference, UiPath Fusion 2025, where it announced new integrations with Microsoft Corp.’s Azure AI Foundry, Google LLC’s Gemini models, OpenAI Group PBC’s GPT models and also Nvidia Corp.

At the event, Dines stopped by theCUBE, SiliconANGLE Media’s mobile livestreaming studio, where he laid out the company’s vision for agentic automation, saying that orchestration is emerging as the critical layer that transforms AI agents into lasting enterprise value. “Our thesis is that you need to have a strong foundation of automation in order to bring intelligence into your processes,” he explained.

Here’s Dines’ full interview:

Holger Mueller of Constellation Research said UiPath’s vision is promising, but added that the company still needs to build its agentic orchestration engines, and that it’s not there yet. Rather, the company’s improving sales stem from its older automation technology, he said. “For all of the talk about agentic AI, UiPath’s results show that enterprises still need more deterministic automation, which is where UiPath really excels,” Mueller said. “It’s too early to tell if UiPath’s agentic orchestration plans will translate into added revenue, but the vision is there and it means its future looks brighter than it did a few quarters ago.”

Today’s after-hours gains means that UiPath’s stock is now up just over 16% in the year to date, but there is still room for improvement, as it trails the broader Nasdaq index, which has gained 21% over the same period.

Photo: SiliconANGLE