UiPath (PATH) shares surged 8.55% in pre-market trading following the company's better-than-expected third-quarter earnings report. The automation software maker reported revenue of $411 million, surpassing the consensus estimate of $393 million, while adjusted earnings per share of $0.16 also topped expectations of $0.15.
The strong performance was driven by growing demand for UiPath's AI-powered automation solutions, with annualized renewal run-rate (ARR) increasing 11% year-over-year to $1.78 billion. CEO Daniel Dines highlighted the company's strategic collaborations with Microsoft, OpenAI, and NVIDIA as key growth drivers. UiPath also issued optimistic Q4 revenue guidance of $462 million to $467 million, aligning with market expectations.
Investors reacted positively to the results, with the stock climbing sharply in pre-market trading. The earnings beat and strong outlook underscore UiPath's leadership in the rapidly expanding enterprise automation market.