Key Highlights

  • UiPath shares are plunging over 11%, reversing last week's gains.
  • The selloff follows IBM's July 14 warning that AI infrastructure spending is cannibalizing software budgets.
  • Peers including ServiceNow, Salesforce, and Workday have also come under pressure.
  • The drop comes just ahead of ServiceNow's Q2 earnings, seen as a key read on automation-software demand.

UiPath (NYSE: PATH) shares are plunging over 11% today, sharply reversing last week's modest gains, as broader enterprise software names remain under pressure following IBM's July 14 warning that AI infrastructure spending is cannibalizing software budgets.

What Happened

The dynamic has weighed heavily on peers like ServiceNow, Salesforce, and Workday, the latter recently downgraded by Morgan Stanley.

The selloff comes just ahead of ServiceNow's Q2 earnings after Wednesday's close, which investors are watching closely as a key read on automation-software demand that could set the tone for UiPath's own upcoming report.

Market Reaction

Despite recent buyback activity and rising annualized recurring revenue that had briefly lifted the stock, sentiment has soured sharply as capital continues rotating toward semiconductor and AI-infrastructure names rather than software platforms.

Outlook

ServiceNow's Q2 earnings report is the next major catalyst for sentiment across the automation-software group, including UiPath's own upcoming quarterly results.

Why did UiPath shares plunge over 11%?

Shares fell amid a broader enterprise software selloff following IBM's warning that AI infrastructure spending is cannibalizing software budgets.

Which other software stocks have been affected?

ServiceNow, Salesforce, and Workday have all come under pressure, with Workday recently downgraded by Morgan Stanley.

What upcoming event could affect UiPath's stock?

ServiceNow's Q2 earnings report after Wednesday's close is seen as a key read on automation-software demand.