UiPath Inc. (PATH) Soars Over 8% on S&P MidCap 400 Inclusion News

UiPath Stock UiPath Inc. (NASDAQ: PATH), a leading robotic process automation (RPA) software provider, jumped more than 8% on January 6 in New York trading. The stock closed at $17.30, up 8.08% from the prior session, boosting UiPath’s market capitalization by roughly $700 million to about $7.97 billion. This “index-inclusion rally” followed confirmation that UiPath will join the S&P MidCap 400 effective before the market open on January 2, 2026.

Mechanical Buying Demand from Index Inclusion

UiPath Stock Sinks to All-Time Low as Outlook Hit by Federal ... S&P Dow Jones Indices announced at the end of December 2025 that UiPath would replace Synovus Financial in the S&P MidCap 400. Index-tracking ETFs and mutual funds must rebalance their portfolios ahead of the January 2 effective date, creating automatic buying pressure on UiPath shares. On January 6, trading volume reached 17.95 million shares—well above the average—highlighting the surge of passive inflows and short-term trading ahead of the index switch.

Strengthening ‘Mid-Cap Growth’ Profile with Earnings Momentum and AI Narrative

This index inclusion reflects more than a technical event: it also recognizes UiPath’s improved financial performance and AI-powered growth story.

  • In Q3 2025, UiPath delivered revenue growth in the mid-teens and swung from an operating loss to an operating profit, beating market expectations.
  • Annual net income and operating cash flow have also trended upward, supporting a revaluation of its “agentic automation” platform that combines RPA with artificial intelligence.
  • According to Yahoo Finance data, trailing-12-month net income has rebounded into the $200 million range, with diluted EPS recovering to around $0.40—metrics that bolster its growth-stock valuation narrative.

High Volatility…Post-Inclusion Earnings Will Be Key

Investors should note UiPath’s high share-price volatility. In December 2025 alone, the stock swung up more than 20% and down around 5%, with several single-day moves exceeding 5% over the past year. While passive inflows tied to S&P MidCap 400 inclusion should support the share price in the short term, future performance will hinge on:

  • Whether expanding AI and automation demand translates into continued revenue and profit growth, and
  • The extent to which UiPath’s 2026 earnings guidance meets market expectations.