UiPath Shares Drop Over 14% Despite Revenue Beat Due to Weak Guidance
UiPath (NYSE:PATH) shares fell over 14% in early trading on September 4, 2026, despite beating revenue expectations for the second quarter. The stock's sharp decline was driven by a weaker-than-expected guidance for Q3, which projected just 7.6% year-over-year growth—roughly half of what it delivered in Q2. While UiPath reported $410.3 million in quarterly revenue (up from a $397.9M consensus) and adjusted operating income well above estimates at $89.03 million, the forward-looking guidance overshadowed these positive results. The slowdown appears to be company-specific rather than sector-wide, as broader tech indices like QQQ remained stable or rose slightly during the same session. Pegasystems (NASDAQ:PEGA) had previously highlighted similar AI-driven customer hesitation in its own earnings report but did not trigger a comparable selloff.
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