1 Reason UiPath Stock Could Beat the Market in 2026

After falling significantly from its highs over the past few years, UiPath (NYSE: PATH) shares have climbed 55% in the last three months. The robotic process automation software developer could be positioned for a breakout year, as interest in agentic artificial intelligence (AI) continues to grow.

In the recent earnings report, management gave positive guidance on the company's path to profitability, which serves as a significant catalyst for the stock next year.

Why UiPath stock could soar next year

UiPath is delivering solid growth, with revenue up 16% year-over-year last quarter. The company credited the growth to customers increasing their use of agentic automation across their operations.

However, the real catalyst for the stock in the near term will be the company's improvement in profitability. The point at which an unprofitable company becomes profitable can significantly impact its stock price. On that note, UiPath just reported its first profitable third quarter.

Furthermore, management stated that it is on track to turn a profit for the whole year in 2026, marking a notable increase in operating efficiency. With the stock trading at a significant discount to its previous peak, this AI stock is poised to rebound in 2026 and potentially outperform the broader market. In the longer term, investors are looking at 400% upside if the stock eventually returns to its all-time high of $90 per share.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UiPath. The Motley Fool has a disclosure policy.