AI-Powered Automation Drives PATH's 51% Three-Month Rally—Should You Accumulate?

UiPath Inc. (PATH) has surged 51% over three months and climbed 29% in just the past month, signaling a meaningful shift in market sentiment. But does this sharp rally reflect genuine business momentum or a temporary spike? Let’s dig deeper.

The AI Breakthrough That’s Reshaping the Business

The real story behind PATH’s performance isn’t just price action—it’s the traction the company is gaining with its Agentic Automation suite. Management highlighted that AI-powered automation solutions are helping close deals faster and at significantly larger contract values than traditional offerings.

Here’s what the numbers show:

• Approximately 450 customers are actively building agent-based workflows
• Nearly 1 million agent runs have been recorded since launch
• Higher-margin AI modules are expanding the overall profitability profile

These aren’t vanity metrics. They suggest UiPath’s customer base is rapidly adopting more advanced capabilities, which improves platform stickiness and strengthens recurring revenue. As enterprises transition from experimental AI pilots to large-scale autonomous operations, UiPath’s early positioning in agentic automation gives it a structural advantage over many competitors.

Unlike AI-pure software peers like Palantir and C3.ai, UiPath differentiates itself through an integrated platform combining robotic process automation with AI. This end-to-end approach addresses operational efficiency more holistically, making it a compelling value proposition for enterprises scaling beyond pilot projects.

Financial Fortress Supports Growth

PATH’s balance sheet backs up the bullish narrative. The company sits on $1.4 billion in cash with zero outstanding debt. This debt-free status provides significant flexibility to fund innovation, strategic investments, and market expansion without financial constraints.

The liquidity picture is equally strong: a current ratio of 2.65 (versus an industry average of 1.94) means PATH has more than sufficient short-term assets to cover liabilities. This financial cushion allows the company to weather economic uncertainties while capitalizing on emerging opportunities in the RPA market.

Analyst Sentiment Shifts Decisively Positive

Wall Street appears convinced. In the past 30 days alone, five analysts upgraded fiscal 2026 earnings projections, and four raised fiscal 2027 estimates—with zero downward revisions. The Zacks Consensus Estimate climbed 3.1% for fiscal 2026 and 5.6% for fiscal 2027.

This kind of uniform upward momentum typically reflects growing confidence in mid-term profitability and growth trajectory, not just near-term price action.

Should You Accumulate or Wait?

The case for UiPath looks compelling for medium- to long-term investors. The convergence of accelerating AI adoption, improving unit economics, and strengthening financial position suggests this isn’t just a temporary rally. Yes, sharp run-ups can face near-term volatility, but the underlying business narrative remains intact.

For those with a multi-year investment horizon, the current setup offers a window to accumulate positions in a company demonstrating both near-term execution and long-term structural tailwinds. PATH carries a Zacks Rank #2 (Buy) rating, reflecting analyst confidence in the fundamentals-driven rally.