Let’s dig into the relative performance of UiPath (NYSE: PATH) and its peers as we unravel the now-completed Q3 automation software earnings season.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 7 automation software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.

UiPath (NYSE: PATH)

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

UiPath reported revenues of $411.1 million, up 15.9% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

“I am pleased with our third quarter results delivering ARR of $1.782 billion, up 11 percent year-over-year, a testament to the team’s focus, consistent execution, and the momentum we're seeing as customers scale agentic automation across the enterprise,” said Daniel Dines, UiPath Founder and Chief Executive Officer.

Interestingly, the stock is up 23.9% since reporting and currently trades at $18.67.

Is now the time to buy UiPath? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Pegasystems (NASDAQ: PEGA)

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ: PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $60.16.

Is now the time to buy Pegasystems? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: SoundHound AI (NASDAQ: SOUN)

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ: SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 11.4% since the results and currently trades at $12.72.

Read our full analysis of SoundHound AI’s results here.

Appian (NASDAQ: APPN)

Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.

Appian reported revenues of $187 million, up 21.4% year on year. This result topped analysts’ expectations by 7.4%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 39.8% since reporting and currently trades at $41.01.

Read our full, actionable report on Appian here, it’s free for active Edge members.

Jamf (NASDAQ: JAMF)

With its name playfully derived from "Just Another Management Framework," Jamf (NASDAQ: JAMF) provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.

Jamf reported revenues of $183.5 million, up 15.2% year on year. This number beat analysts’ expectations by 3.4%. It was an exceptional quarter as it also produced a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

Jamf had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $12.88.

Read our full, actionable report on Jamf here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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