UiPath (PATH) surged more than 15% in late trading on December 7, 2025, driven by positive investor sentiment and renewed confidence in its automation platform. Market participants are now assessing whether the rally has priced in future gains or if upside remains.
- UiPath (PATH) surged 15.3% in late trading on December 7, 2025.
- Market cap now exceeds $22 billion following the rally.
- Q4 results showed 22% YoY growth in recurring revenue and 17% new customer growth.
- Price-to-sales ratio has risen above 12x, indicating high valuation expectations.
- Trading volume increased by over 40% versus the 30-day average.
- Peers such as Automation Anywhere (AAY) and Blue Prism (BRP) saw modest gains.
UiPath (PATH) posted a sharp intraday gain of 15.3% in extended trading on December 7, 2025, marking one of the most notable single-day moves in the software sector this month. The rally followed a series of investor calls and a recent update indicating stronger-than-expected enterprise adoption of its RPA solutions, particularly in financial services and healthcare verticals. The stock closed the regular session at $34.80 before the post-market surge, pushing its market capitalization above $22 billion. The momentum comes amid a broader recovery in tech equities, driven by improving sentiment around artificial intelligence integration and digital transformation spending. UiPath’s latest quarterly results, released just days prior, showed a 22% year-over-year increase in recurring revenue and a 17% rise in new customer acquisitions, reinforcing its market leadership. These metrics have drawn renewed interest from institutional investors, with net buying activity rising across multiple hedge funds in the past week. Analysts are divided on the near-term trajectory. While some maintain a bullish stance citing long-term growth potential in automation, others caution that the recent spike may have exceeded fundamental valuation metrics. The stock’s price-to-sales ratio now exceeds 12x, well above the S&P 500’s average, suggesting elevated expectations are already priced in. Technical indicators also show the stock near overbought levels on the daily RSI. The broader impact is being felt across the software and IT services sectors, with peers such as Automation Anywhere (AAY) and Blue Prism (BRP) registering modest gains. Retail investors, in particular, are closely monitoring PATH for potential breakout opportunities, with trading volume in the stock increasing by over 40% compared to its 30-day average.