11:02 AM EDT, 09/05/2025 (MT Newswires) -- UiPath ( PATH ) is "executing well in a challenging operating environment," with an improving sales performance and a net retention rate expected to stabilize in fiscal H2, Oppenheimer said Friday in a report.

Management raised fiscal 2026 targets above the fiscal Q2 upside, signaling strengthening business trends, the report said.

On Thursday, UiPath ( PATH ) boosted full-year revenue guidance after reporting Q2 adjusted earnings and sales that topped Wall Street estimates.

Still, growth continues to ebb, and UiPath's ( PATH ) federal business performance is a "wild card" in Q3, partly because of "less predictable" spending this year, Oppenheimer said.

Oppenheimer maintained its perform rating on the software company's stock, "given the uncertainty about

UiPath's ( PATH ) role in the AI transition's future and from showing decelerating growth."

UiPath ( PATH ) shares rose 4.8% in recent Friday trading.

Price: 11.38, Change: +0.53, Percent Change: +4.84