UiPath Q4 2026 Earnings Call - AI and agentic adoption stabilizes ARR, 30% long-term margin target set

Ashim Shankar, Chief Financial Officer, UiPath0: Hello, and thank you for your patience. I will now hand the call over to Daniel Dines.

Daniel Dines, Chief Executive Officer, UiPath: Hello, everyone. Thank you for coming back after our outage with the service provider for our investor relations conference calls. We are ready to take questions. I hope that you guys get the chance to listen to the end of our reading. We have published online the entire transcript of our earnings calls. Thank you again, and apologize for the delay. We are ready to take questions.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. With that, we will now be conducting a 30-minute question-and-answer session. We do ask that you please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the queue. You may press star two to remove yourself from the queue. For any participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment while we poll for questions. Our first question comes from the line of Bryan Bergin with TD Cowen. Please proceed with your question.

Bryan Bergin, Analyst, TD Cowen: Hi, guys. Thanks for taking the questions here. First one I have is just as it relates to net new ARR, and as you built the 2027 outlook, just how are you thinking about net new ARR expansion potential here for on an FX neutral basis? Sorry if I missed what you said on FX contribution assumptions as it relates to 1Q and the full year, but just trying to unpack that looking ahead. Then my follow-up is gonna be on margin, so on op income margin. Appreciate the update on the 30% target. Just wanna dig in on how you’re thinking about the potential, you know, the moving parts of that as it relates to gross margin and OpEx components moving forward.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. Brian, great to hear from you. When you think about the ARR contribution, I think our guidance kind of says it. There’s really no significant or material FX contribution from that versus our prior guidance. As you look at it, you know, really FX is a minimal impact from where, you know, our previous estimates were. The second piece of it is from a margin standpoint, you know, you look at the moving pieces and definitely, you know, across the board there is opportunity to agentify and to use the technology advances, you know, across every function. That includes, you know, engineering, G&A, as well as sales and marketing, which gives us really the ability to continue to reinvest in growth as needed.

You know, we’re gonna look at a balanced way in terms of what makes sense for the company. You can see our commitment to operating margin expansion over the last two years. Then just back to the ARR, I wanna just give a little bit of color. You know, when you look at our base there, you know, we have a sizable Japan business, so we have headwind from the yen and tailwind to the euro, and they basically net out to be an immaterial impact for the full year. We’re really pleased with the progress.

You know, as Daniel commented and I did in the script, you know, we really feel positive about the expansion that we’re seeing within our customers and, you know, our ability to stabilize our net new ARR, and that’s kind of reflected in both our performance as well as our guidance.

Bryan Bergin, Analyst, TD Cowen: All right. Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Sanjit Singh with Morgan Stanley. Please proceed with your question.

Ashim Shankar, Chief Financial Officer, UiPath1: Yeah, thank you for squeezing me in. Daniel, thank you for that disclosure on the ARR traction. Sorry, the AI traction with respect to ARR, the $200 million. That was great to see. In terms of the composition of that, could you give us any details on sort of, you know, the split between IDP and what you’re seeing on the agent side? To the extent you can’t sort of disclose that, I’d just love to hear about the underlying momentum with the agentic side of the house, including Maestro as you go into next year.

Daniel Dines, Chief Executive Officer, UiPath: Hi, Sanjit. We have really a great momentum on diffusion of the AI within our platform. We have not provided clear ratios between different components of what we put into the AI, and I will let Ashim to comment further.

Ashim Shankar, Chief Financial Officer, UiPath: Sanjeev, like when you look at the way we price, we actually allow pretty good fungibility between our AI and agentic products, actually, both in some of our old pricing as well as our new pricing. We don’t really materially split it out. Of course, IDP has been in the market for a longer period of time, for like, you know, the last 2.5-3 years. IDP, you know, definitely has a good portion of the ARR, but agentic is a significant portion, you know, and we see that in the platform units. You can see that in the deals and the commentary that we’re giving and selling, you know, it is a part that we talk about in our script.

From that standpoint, we can’t really split it apart, but we also see them as complementary because remember, IDP also includes IXP, which is not like simple document processing. It really uses advanced technology to be able to parse different documents using different models and that, you know, that is part and parcel of the way we price.

Ashim Shankar, Chief Financial Officer, UiPath1: Yeah, that’s great. That’s great context. Just a follow-up on the guide, Ashim, on two aspects. One, in terms of WorkFusion, how should I think about that contribution when I sort of calculate what the guidance implies from a net ARR basis? I think there’s some reports out there that they’re around $25 million ARR towards the end of last year. I just wanna sanity check that. From this time last year, there was some concerns around DOD, as you guys were pretty cautious on the federal business. Just your sort of underlying assumptions about federal going into next year, maybe the first half of this year, given some of the headwinds you saw this time last year.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. The first thing is the $25 million is not accurate. That’s the first thing I can say categorically. The second piece is, you know, they also had a different method of ARR of accounting. When we brought it back, you know, even the numbers that have been out there also do not account for it. It is actually below our materiality threshold, Sanjit, so that gives you an indication. We really look at this like a tuck-in acquisition in terms of where it is. You know, from that standpoint, you can also just see kind of the strength overall within our guidance, and we’ve been transparent that that includes, you know, the WorkFusion contribution, but it is immaterial, and we don’t break it out.

Ashim Shankar, Chief Financial Officer, UiPath1: Just on the Fed piece.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah, sorry. On the federal government, we’re actually seeing really good traction there. You know, I would say just like the environment, I would say the federal government is a dynamic economy. I would say our team has done an incredible job, connected at really high levels within the organization. You know, I’ll let Daniel comment on some of his discussions and his views of it. You know, within certain agencies, we feel very well strong position. Then there are some agencies, of course, that are going through their changes. Overall, we’re actually very bullish about the way our teams are executing and the opportunity that exists there.

Daniel Dines, Chief Executive Officer, UiPath: We are seeing an increased appetite for more long-term projects, strategic projects, especially in the Department of War.

Ashim Shankar, Chief Financial Officer, UiPath1: Appreciate the color. Thanks, Daniel and Ashim.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Michael Turrin with Wells Fargo Securities. Please proceed with your question.

Michael Turrin, Analyst, Wells Fargo Securities: Hey, great. Thanks very much. Appreciate you taking the question. Just to start maybe a higher level one, you had some commentary, but just in terms of budgets and what you’re seeing around categories like automation and AI, it’d be great to get just a top-down view there and also how you’re positioned to capture that in a market where there’s just an increasing number of vendors also positioning agentic solutions which may be newer to market, but might also insert some noise into those conversations.

Daniel Dines, Chief Executive Officer, UiPath: Look, I think we are really well positioned to help customers with the infusion of AI within their enterprise workflows. We have built Maestro, which is essentially a process orchestration technology that at its core is a new powerful workflow engine. That gives us a very interesting advantage in the market right now. We all know about the impact of the coding agents. I would say that this will translate for us, and I’m extremely bullish about it, into a much faster adoption curve for our customers. We aim to use coding agents to enable our platform for coding agents that will accelerate dramatically the time to value for our customers. That, of course, includes creation of AI agents, deployment of agents in the context of enterprise workflows.

I would like also to stress how important is the combination between deterministic automation and agentic automation into the context of the same platform that can orchestrate both what I would say humans, agentic, and deterministic automations.

Michael Turrin, Analyst, Wells Fargo Securities: Thanks for the color there, Daniel. Ashim, just you gave some texture. I know the commentary and the guidance on the call was pretty similar to entering fiscal 2027 as 2026, but it sounded like in some of the prior answers that maybe public sector is trending a bit better. Just any more context you’d give us around how you’re characterizing the current environment, the visibility you have into the model for the forward year at this point, and just how you’re thinking about the contribution from the AI product portfolio as that scales in fiscal 2027.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah, I mean, we really continue to characterize it as variable. I’ll double-click just again for, you know, anybody who’s new in terms of what we mean by that. I think we do see pockets of strength, and we see pockets of pressure or fluctuations that happen in from a macroeconomic standpoint. At the same time, those tend to move around quite a bit. Like, right now, our bullishness in terms of public sector feels really good. Last time of this year, if you remember, we kinda all, you know, felt a lot of uncertainty in that area. We’re seeing strengths in areas like financial services and healthcare, international markets like Australia. Then there’s, you know, obviously the Middle East conflict is there, so there’s uncertainty there. We really characterize it as variable.

As I commented on in the script, you know, we continue to kind of maintain a very consistent guidance philosophy. You know, we look at our pipeline, we have really deep inspection. We get a lot of signal from the field. Daniel has spent a lot of time with customers over the last three months, four months. We’ve been very in touch with kind of the field in terms of what we’re hearing. The other piece is we obviously have very strong now statistical and forecasting models between our finance and our ops team, and we triangulate the three of them. You know, we talked about kind of putting the appropriate prudence in there for guidance, accounting for the variability in macroeconomic environment, and we’ve done so.

At the same time, when you look at our guidance, I do think it also reflects kind of stabilization of net new ARR and what the, you know, potential is yielding in terms of the traction our teams are making in the agentic market and how we’re positioned. That’s how I would characterize our guidance.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: All very helpful. Thanks very much.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Kirk Materne with Evercore ISI. Please proceed with your question.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Hey, this is Chirag on for Kirk. Thanks so much for taking the question. You highlighted multiple industry partnerships, right? Veeva, like with Veeva and certain vertical solutions like healthcare and financial crime. Would you highlight healthcare and finance as the two verticals that are showing the strongest willingness to spend right now on agentic AI initiatives, or are there others that you would flag? When you think about agentic automation at scale, what does success look like in terms of repeatable playbooks and sales cycle impact here? Thank you.

Daniel Dines, Chief Executive Officer, UiPath: Yeah, I think you got it very right. It’s the healthcare, and I think we nominate it within the healthcare in particular, I would say, parts of revenue cycle management, denials, prior authorization. It’s a very important type of processes for us. Financial industry has been, you know, since the beginning of the company, our stronghold, and we strengthen it with the acquisition of WorkFusion, with our big foray into financial crimes. I would add also the public sector as an important vertical for us that we are eyeing.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Okay. Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Terry Tillman with Truist Securities. Please proceed with your question.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Yeah, thanks for taking my questions. I have two. First on Maestro, it is my impression it’s vendor agnostic from an agentic standpoint. Are y’all seeing situations where it’s involved in managing agents from system of record companies or AI native businesses, or is it mostly like a control plane for your own agents? Then I had a follow-up.

Daniel Dines, Chief Executive Officer, UiPath: Yeah, I think Maestro it’s kind of agnostic in terms of what kind of agents it can manage. Of course, for our own agents that are built with Agent Builder, we have a very tight integration, but we have also brought agents built with open source frameworks like the LangGraph type of agents, first class citizens in our platforms. In terms of using utilizing agents built on system of records applications, of course, we facilitate using them in our platform. I would not say we manage them. It’s more or less like you can call an API that is provided by that platform. I wanna be specific. All the

All agents that are built with open source framework can be deployed and executed in the context of security and governance that our platform provide.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Yeah. That’s a good clarification on the API side. Thank you, Daniel. I guess, Ashim, the SaaS shift, that was an important call-out, 1% impact to growth as we look into FY27. I’m also curious, though, is there also starting to be this impact of timing dynamic or around consumption or scaling volumes related to the actual agentic solution that we need to kind of appreciate that’s not gonna show up in revenue yet?

Ashim Shankar, Chief Financial Officer, UiPath: No. I mean, remember, we still price on kind of a bundled, meaning on a subscription consumable type hybrid model, meaning we sell kind of use it or lose it units that are there. We’re not on a consumption basis of accounting, so to speak. We’re still on an ARR basis of our accounting. So I would say there’s. It’s not about, you know, any trailing impact or any delayed impact that you would see there. At the same time, I think our agentic solutions are scaling, and our customers are adopting more and more as we talked about in the script, and sales are moving very well for us. You know, that obviously is what’s contributing a little bit to our SaaS headwind.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Yep. Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Brent Thill with UBS. Please proceed with your question.

Chirag / Kirk Materne / Terry Tillman, Analyst, Evercore ISI / Truist Securities: Awesome. Thanks, guys. Daniel, in your prepared remarks, you mentioned this growing backlog of automations you’re seeing at customers. I just wanted to double-click on that. Like, how big is that tailwind of AI unlocking more automatable workflows? And you mentioned the AI product ARR, but just how material is that sort of pull-through to the core automation business as well? Just love to get your thoughts there.

Daniel Dines, Chief Executive Officer, UiPath: Yeah, that’s an acute observation because, you know, the huge interest in AI, it’s actually driving a renewed interest in automation. I think in most cases that we are seeing, people expect that the use of AI will result in some sort of automation. It’s becoming more clear that AI and agentic AI and deterministic automation are very complementary. Basically, any AI initiatives surfaces more opportunities for deterministic automation, especially in our case, for unattended deterministic automations.

Brent Thill, Analyst, UBS: Got it. Thanks. Just to follow up for Ashim, as we think about the ARR and revenue guide for the year, and we think about sort of what the biggest drivers are, you guys really expanded the product portfolio over the past, you know, 12-18 months. Just as we think about, you know, AI products, Test Cloud, vertical solutions, or core RPA, like how should we think about sort of what the biggest drivers are of that sort of growth next year as we kind of think about the guide?

Ashim Shankar, Chief Financial Officer, UiPath: I think if you just look at some of the metrics that we disclosed, right? 90% of our million-dollar-plus customers have an incorporated AI products, right? I think that is a great tell to me, kind of the success of the AI products and the ability for us to expand. We’ve also talked about the number of customers that still, you know, have room to adopt those AI products that are there. From our standpoint, AI and agentic is going to lead the way. But at the same time, as Daniel talks about, you know, they’re not a separate stream. They actually are very synergistic. As people, you know, pull forward AI and agentic products from us, it actually also pulls through the rest of the platform, whether that is IDP, IXP, unattended robots, et cetera.

We see that. You know, we are very purposeful in discussing, you know, that we are seeing growth rate within kind of the core RPA business, and we look at that as very synergistic as we go forward. The other thing to highlight is we’re super excited about our test automation business. You know, that is still in its infancy, but we really see that having good traction in the market. That is also a growth driver for us as we enter this year.

Brent Thill, Analyst, UBS: Awesome. Thanks, guys.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Scott Berg with Needham & Company. Please proceed with your question.

Ashim Shankar, Chief Financial Officer, UiPath2: Hi, everyone. Thanks for taking my questions here. I’ve got two. Daniel, we’ve been doing some work with some partners here. It’s become very evident and clear that your partner strategy seems to be resonating really well right now across several different, or your vertical strategy, excuse me, is working well across several verticals. My question is, as you look into 2027, are you able to lean into that strategy even more so given the success you’re having there lately? Or do you feel like you’re already at kind of a maximum effort?

Daniel Dines, Chief Executive Officer, UiPath: On the contrary, I think we are at the beginning of our vertical strategy. We are doubling down our focus on investments into this year. If I can summarize our product strategy, I think there are three major pillars that we are seeing right now. We focus on adopting coding agents all across our platform. Every single artifact that is building on our platform will be built primarily by coding agents. Second, it’s process orchestration that really drives everything, agentic AI and deterministic workflows. Third, it’s vertical solutions. We are seeing clearly more of a move into customers that have a higher demand of kind of an outcome-based, vision-based, use case-based type of solutions that they wanna adopt.

Ashim Shankar, Chief Financial Officer, UiPath2: Got it. Very helpful there. Ashim, I was hoping you can drill down in the quarter a little bit. I know there’s a $14 million tailwind around FX for ARR, but what was your assumption of that number going into the quarter? Getting a lot of questions to try to kind of back into the math in terms of how much incremental impact there might have been versus your, you know, expectations 90 days ago.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. It was honestly right. It was just right in line with that. As I talked about, like, I think the yen you could see has, you know, an inverse correlation to the euro, and the net for both of those tended to be zero. We see that both as we look into the current year, as we’ve seen FX rates move, as well as, you know, the current assumption that we see there. So from both our guidance standpoint and our results, we really see an immaterial impact to that. The driver for our beat in the quarter was really just sales execution. You know, we feel very strong about the customer response as we’ve seen about the traction that we’re getting within our AI products. FX did not have a material impact versus our guidance.

Ashim Shankar, Chief Financial Officer, UiPath2: Okay. Thanks for the support.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from Kingsley Crane with Canaccord Genuity. Please proceed with your question.

Kingsley Crane, Analyst, Canaccord Genuity: Thank you for taking the questions. I think the idea of AI on top of deterministic automations is really resonating. Just on this idea of agentic really being about pulling through to the whole platform. Just trying to get a sense of how that ends up playing out from a deal timing perspective. Like, is the customer typically renewing at a much higher rate? Is it happening where they’ll adopt AI and then through the life cycle of their contract, they’ll realize that they need more automation? Just trying to get more color on that. Thank you.

Ashim Shankar, Chief Financial Officer, UiPath: I think it’s all of the above, honestly. Like, we’ve seen customers renew just at renewal, expand into AI products. We have very good examples of that both within, you know, across every vertical and every geography. There’s also areas that, you know, they’re still working through their POCs, but it’s bolstered their renewal and their confidence given our roadmap. The POCs are moving well, so they would expand just a little bit as they continue to kinda dip their toe in the water. From our standpoint, it’s not one single motion. You know, it really depends on the customer or the circumstance.

What is encouraging to us is the success of our proofs of concept, the feedback that we’re getting from customers that, you know, as Dan will talk about, governance matters and the full extent of our platform is a difference maker for us.

Kingsley Crane, Analyst, Canaccord Genuity: Great. Then just a quick follow-up. That number one OSWorld ranking for Screen Agent, definitely impressive, and that’s still holding up. Just curious, like how specifically Screen Agent is driving more automation growth within customers. Just a reminder on the unit economics, if that’s affected by, you know, running Opus versus running Haiku, things like that. Thanks.

Daniel Dines, Chief Executive Officer, UiPath: Yeah. I think we are still in the early innings of deployment of the ScreenPlay Agent. We are seeing really good use cases from our customers. The powerful use of this ScreenPlay Agent is that it is used in the context of autonomous workflows. Basically, the best we combine, like using deterministic UI automation technologies. In the places where it’s extremely difficult to define in rules how to use the screen when the screens have you know high degree of variability, our customers are using the ScreenPlay Agent. That basically extended our platform in a few use cases that we couldn’t basically touch before. Again, I think it’s still early to comment on how does it help with the platform adoption.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Alex Zukin with Wolfe Research. Please proceed with your question.

Alex Zukin, Analyst, Wolfe Research: Hi. Thanks for taking the question. I just kind of wanted to go back and expand kind of on the ARR guidance, the methodology in terms of that conservatism. Like what does that mean? I understand we’re not gonna be talking about inorganic from WorkFusion, $20 million, whatever it is. Even if you strip out that number growing at the 65% rate the CEO talked about, is there a way that it still looks a little bit less conservative in that guide? If there is a little bit less conservative, any dynamic where it’s just, hey, larger renewal cohorts and also more confidence in that execution tailwind that you started to see exiting the year?

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. One is I just wanna correct, like I don’t think we should, you know, the metrics that we talked about, as I said, we bring it on at a different ARR methodology. I really wanna caution everybody to use kind of those false, those assumptions. It’s immaterial for a reason, as we’ve done that test. The second piece is, you know, while the business is growing at 65%, remember, we also have, you know, overlapping customers, et cetera. We really view this as a technology tuck-in that can drive utilization and stickiness across our agentic and AI platform. Of course there, you know, we do see potential there for the upsell, but we also have to go through an integration period, you know, with the company.

That is, you know, all baked into our guidance from that standpoint. You know, we look at it as our core business continues to be very strong and we are stabilizing, you know, net new ARR. You know, with AI and agentic, we do feel bullishness, you know, about the overall business. Given the macroeconomic environment continuing to be variable, you know, we do layer the appropriate prudence that is there.

Alex Zukin, Analyst, Wolfe Research: Got it. Just in response to an earlier question, I didn’t really kind of get it in line with the constant currency. Like, can we just clarify what was the constant currency ARR growth rate implied in the guide for revenue and for ARR growth? Because the communications throughout the year on tailwinds and incremental headwinds has kind of laid out a weird kind of analysis to figure out what the actual core constant currency growth was.

Ashim Shankar, Chief Financial Officer, UiPath: From our standpoint, you know, we gave the $14 million, which we assumed for the guidance that was there. The growth rate remains 11%. For us, it is largely immaterial year-over-year.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Siti Panigrahi with Mizuho Securities. Please proceed with your question.

Ashim Shankar, Chief Financial Officer, UiPath3: Hi, this is Siti Panigrahi for Mizuho. You guys raised the long-term non-GAAP operating margin target to 30%, which is a meaningful step up. Can you walk us through what gives you confidence in that number? What is the timeframe of achieving that target?

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. You know, right now we’re in and around 23% north of that. We’ve shown really good progress and scalability over the last couple years in particular. The first thing is we just continue to operate with really good discipline, and we constantly are moving investments to higher return areas. When you’re able to do that, it obviously creates a scalability of expansion. The second is, you know, we believe in the productivity that is being unlocked right now with agentic, and that agentification within our own business is something that is, you know, very exciting for us and our teams to unlock further steps of productivity. That includes all areas within the company.

We can be more productive, expand, and support our broader roadmap really with, you know, similar technology spend just because of the advances that are there or R&D spend. The same goes with our G&A function as well as our sales and marketing function. We’re really seeing that scalability just even with the technology advances as well. In terms of timeframe, you know, it’s a long-term margin target. You know, that’s, you know, as it implies, that’s kind of within a three-year timeframe from our standpoint in and around it. At the same time, like, you know, we don’t take. We’re not waiting for three years. We’re gonna continue to execute and, you know, drive productivity as we see fit.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of Koji Ikeda with Bank of America. Please proceed with your question.

Koji Ikeda, Analyst, Bank of America: Hey, guys. Thanks so much for taking the question. I’m gonna ask one on dollar-based net revenue retention. So it’s down a point to 106% when adjusting for FX. Looking into fiscal 2027, what are the main drivers we should be thinking about, whether that’s product, geography, vertical, or maybe something else in there that can drive expansion in that metric? How should we be thinking about the dollar-based net revenue retention assumptions that are embedded in the guide? Is that flat, up, or down from the 106%? Thanks so much.

Ashim Shankar, Chief Financial Officer, UiPath: Yeah. I think when you look at overall net new ARR stabilizing, like, we don’t really see a difference in the mix shift between net new logos as well as expansion. We see them both as areas that will continue. We’ve kind of operated in this 80/20, 70/30 split. You know, that gives you, I think, enough data to be able to see that net new ARR stabilizes over this period of time from where we are. In terms of what gives us confidence or kinda how we see that expansion, again, as we spoke about earlier, it is really around our AI and agentic products. Then with that, really pulling through the overall platform, you know, including deterministic automation, you know, continuing to expand across our customer base.

Koji Ikeda, Analyst, Bank of America: Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. Our next question comes from the line of James Kisner with Water Tower Research. Please proceed with your question.

James Kisner, Analyst, Water Tower Research: Hi. Thanks for taking my question. I guess first, just from the AI foundational model perspective, I mean, has the Anthropic, you know, supply chain risk designation, have you seen any kind of ripples from that at all? Is there any kind of exposure at all, any change in behaviors out there? Then just on the WorkFusion acquisition, does that portend potentially, you know, future acquisitions in other verticals for agentic capabilities? Thanks.

Daniel Dines, Chief Executive Officer, UiPath: Yeah. In relation to Anthropic, our strategy was from the beginning to be model agnostic. One of the features that many of our customers have requested is to give them the capabilities of choosing what model and even bring their own model to be used by our platform. We do offer Anthropic models, but they are optional and not mandatory. From this perspective, there is zero impact on our working relationship with public agencies in the U.S. About WorkFusion, it is we are always looking into the market, especially for targeting acquisition that gives us the talent, technology, and expertise in a particular vertical.

James Kisner, Analyst, Water Tower Research: Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. With that, ladies and gentlemen, that does conclude the question and answer session. I would now like to turn the floor back to management for any closing remarks.

Daniel Dines, Chief Executive Officer, UiPath: Well, thank you so much for listening to this call. Once again, I would like to apologize for the outage that we experienced, and I’m looking forward to meeting many of you in the coming days. Thank you.

Ashim Shankar, Chief Financial Officer, UiPath0: Thank you. With that, ladies and gentlemen, this does conclude today’s teleconference. We thank you for your participation. You may now disconnect at this time, and have a wonderful rest of your day.