UiPath Inc (NYSE:PATH) stock rallies 20.16% (As on December 4, 11:35:35 AM UTC-4, Source: Google Finance) after the company beat expectations for its third-quarter financial results today and followed up with strong guidance for the current quarter. 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. 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. The company is gaining momentum as customers accelerate their artificial intelligence automation strategies, where its software plays a pivotal role for them. Dollar-based gross retention remained best in class at 98%. Third quarter non-GAAP adjusted free cash flow was $28 million. The company ended the quarter with a healthy balance sheet of $1.5 billion in cash, cash equivalents, and marketable securities and no debt.

Meanwhile, the company is expanding through deep collaborations with global technology leaders. At Fusion, this collaboration came to life through new integrations, including with Microsoft Azure AI Foundry, enabling UiPath agents to work seamlessly with Azure agents and models. Using model context protocol, UiPath, expense integrations with Microsoft Copilot, and empowers organizations with the trust and governance needed to run agents at scale. The company announced a collaboration with OpenAI to deliver a chat GPT connector bringing OpenAI’s Frontier model directly into enterprise workflows simplifying AI agent development and accelerating time to value. The company also launched new conversational agent with Google’s Gemini models, enabling natural voice-driven automation without complex coding. Additionally, the company introduced a new integration with NVIDIA. And finally, the company partnered with Snowflake to combine AgenTik automation with Snowflake Cortex AI, helping businesses turn data insights into fast, autonomous action. During the quarter, PATH expanded the collaboration with Deloitte.

PATH in the third quarter of FY26 has reported the adjusted earnings per share of 16 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents. The company had reported the adjusted revenue growth of 16 percent to $411.1 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $392 million.

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.