NEW YORK & LAS VEGAS - UiPath (NYSE: NYSE:PATH), an enterprise automation and AI software company, has formed a strategic partnership with Inflection AI, aiming to enhance operational efficiency for businesses. The collaboration will integrate UiPath's platform with Inflection for Enterprise, a solution designed for large enterprises to adopt AI securely.
Graham Sheldon, Chief Product Officer at UiPath, highlighted the partnership's significance for customers in regulated industries seeking AI transformation with reduced risk. The integration will be part of UiPath Autopilot, offering built-in support for Inflection's private cloud and appliance solution, catering to industries with stringent security needs.
Inflection AI, known for its leading Large Language Models (LLMs), has developed the first enterprise-grade AI system in partnership with Intel (NASDAQ:INTC). This system is intended to be available through Intel's Tiber AI Cloud service, powered by Intel's Gaudi 3 processors.
The announcement was made at UiPath's FORWARD user conference in Las Vegas, where UiPath also introduced its next phase of advanced AI solutions, termed agentic automation. This new suite combines AI, automation, and orchestration, aiming to provide quick and secure results while maintaining trust.
Ted Shelton, COO of Inflection AI, emphasized the importance of on-premises solutions for customers, which the partnership with Intel aims to provide. This allows UiPath's customers to keep data on-premises while leveraging the capabilities of Inflection AI's system and agentic automation.
Inflection AI, established in 2022, created the Pi LLM and was refounded in March 2024 with a focus on harnessing enterprise intelligence. UiPath continues to develop AI technology to transform how businesses operate, with a commitment to security, accuracy, and resiliency.
This partnership is expected to offer a private cloud alternative for automation in sectors with strict security protocols. The information is based on a press release statement from UiPath.
In other recent news, UiPath, an enterprise automation software company, has surpassed its Q2 fiscal 2025 expectations with a significant increase in key financial areas. The company's annual recurring revenue (ARR) grew by 19% year-over-year, reaching $1.551 billion, boosted by $43 million in net new ARR. The second-quarter revenue was $316 million, a 10% increase from the previous year, and non-GAAP adjusted free cash flow was reported at $49 million.
UiPath also reported a substantial 65% increase in cloud ARR, which now stands at over $850 million. The company expects third-quarter revenue to be between $345 million and $350 million and projects full-year 2025 revenue to range from $1.420 billion to $1.425 billion.
In other developments, UiPath is focusing on continuous innovation and differentiation in its AI-powered automation platform. The company is also emphasizing growth products, enhancing partnerships, and becoming more customer-centric. CFO Ashim Gupta is expanding his role to Chief Operating Officer to enhance financial and operational efficiencies.
Despite a variable macroeconomic environment, UiPath sees AI capabilities as a meaningful opportunity to drive value and differentiation with customers. The company is uniquely positioned to offer a high level of process orchestration between robots, agents, and humans.
InvestingPro Insights
UiPath's strategic partnership with Inflection AI comes at a crucial time for the company, as reflected in recent financial data and analyst insights. According to InvestingPro data, UiPath's market capitalization stands at $7.01 billion, with a revenue of $1.38 billion in the last twelve months as of Q2 2025, showing a growth of 20.41% over the same period.
The company's focus on AI and automation aligns well with its impressive gross profit margin of 84.03%, highlighting its ability to efficiently deliver its software solutions. This efficiency is crucial as UiPath aims to enhance its offerings through partnerships like the one with Inflection AI.
InvestingPro Tips reveal that UiPath holds more cash than debt on its balance sheet, which provides financial flexibility to invest in strategic initiatives such as the newly announced agentic automation suite. Additionally, analysts predict that the company will be profitable this year, suggesting a positive outlook on UiPath's ability to monetize its AI and automation technologies.
However, investors should note that UiPath's stock has taken a significant hit over the last six months, with a price total return of -30.92%. This decline might reflect broader market sentiments or specific challenges the company faces in its growth trajectory.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for UiPath, providing a more comprehensive view of the company's financial health and market position. These insights can be particularly valuable as UiPath navigates the competitive landscape of AI and enterprise automation.
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