UiPath and Pegasystems Sink 7% as Price Target Hikes Arrive Without a Single Buy Rating

UiPath and Pegasystems Sink 7% as Price Target Hikes Arrive Without a Single Buy Rating David Moadel Wed, September 9, 2026 at 2:15 AM GMT+9 5 min read PATH -7.60% AI -0.10% PEGA -6.53% IGV -1.58% Quick Read PATH dropped 7% and PEGA fell 6% after four analysts raised UiPath targets but kept Hold or Underperform ratings, signaling the 40% August rally outpaced fundamentals.

C3.ai fell just 1% while IGV drifted lower, as its 73% quarter-over-quarter bookings surge gave it a differentiated narrative from UiPath's unresolved ARR growth debate.

UiPath's September 22 investor day in Las Vegas is the next catalyst where management must show AI attach rates translating into meaningful ARR acceleration.

Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and UiPath didn't make the cut. Enter your email to see the names that beat PATH. The report is free. Enter your email and see if any of your stocks made the cut.

The enterprise AI automation cohort is selling off Tuesday as Wall Street's response to UiPath's (NYSE:PATH) fiscal second-quarter report crystallizes into a chorus of higher price targets paired with non-buy ratings. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is down 2% on the session, and the automation names inside it are pacing the decline. Analysts think UiPath stock is worth more than it was a week ago, but their ratings remain firmly on the sidelines.

UiPath stock is down 7% to $14.11 in Tuesday afternoon trading, extending a selloff that has undone a 40% August rally into earnings. Pegasystems (NASDAQ:PEGA) shares are down 7% to $34.86 without a fresh company-specific catalyst, seemingly moving in sympathy with the group.

Meanwhile, C3.ai (NYSE:AI) stock is down 1% to $10.35, holding up notably better than its peers. That relative resilience complicates any read that the entire agentic AI software group is being marked down as one block, because C3.ai's own turnaround narrative from last week's earnings call gives it a different setup from UiPath's growth-quality debate.

24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.

The report is free, and you can see why we think each stock is a top investment today.

UiPath's fiscal Q2 2027 revenue of $410.26 million topped estimates, and annual recurring revenue reached $1.938 billion, up 12% year over year. The company also swung to $32 million in GAAP operating income from a prior-year loss, marking its fourth consecutive quarter of GAAP profitability. That combination was enough for four Wall Street firms to lift price targets while leaving all of them parked on the sidelines.

Koji Ikeda at Bank of America raised his PATH stock price target to $15 while keeping an Underperform rating, arguing the quarter did little to answer whether AI will meaningfully accelerate ARR growth. Truist lifted its target to $17 with a Hold on more agentic AI deals and modest customer growth improvement, and TD Cowen went to $16 with a Hold, citing steady performance and stable retention. DA Davidson also nudged its target higher while keeping a Neutral rating, rounding out a group that collectively signaled the recent rally had gotten ahead of the fundamentals.

Pegasystems carries its own overhang from its Q2 2026 report, when total annual contract value (ACV) growth slowed to 7% year over year and CEO Alan Trefler flagged AI-driven client hesitation that management warned could persist through year-end. Pega Cloud remained a bright spot, with Pega Cloud ACV up 22% to $926.29 million, though the topline miss and elongated sales cycles left Pegasystems stock exposed to any negative read across the automation software peer group.

With no obvious news of its own today, the 7% PEGA stock drop looks like guilt by association with UiPath rather than a stand-alone Pegasystems catalyst. Pegasystems stock's 41% year-to-date decline shows how much repair work is already priced in, which arguably raises the bar for meaningful further downside on sector sympathy alone.

The next scheduled test for UiPath is its investor day in Las Vegas on September 22, followed by its Fusion user conference running through September 25. That's the venue where management can put a sharper number on how AI attach rates translate into ARR acceleration, which is the specific bar every analyst note pointed to on Tuesday.

The bull case rests on AI-attached deals meaningfully widening deal scope and stickiness, and UiPath said 18 of its top 20 deals in the quarter included AI. The bear case is that four target hikes with no rating changes is Wall Street's polite way of saying the fundamentals haven't yet earned a rerating, particularly with UiPath stock having rallied hard into the report.

Shareholders can watch for a lifted ARR outlook at UiPath's investor day, or another quarter of the growth question being deferred. Position sizing on both UiPath and Pegasystems should stay modest given the recent volatility, and investors holding either name should keep their exposure trimmed to survive a stretch of range-bound trading if the automation-software rotation drags on.

If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And PATH wasn't one of them.

They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>

Contact editorial@247wallst.com for any questions or corrections.