Fastly vs. UiPath: Which Artificial Intelligence Stock Is a Better Buy Going into 2027?

Modern digital experiences require speed and intelligent automation to remain competitive. If you are choosing between Fastly (FSLY -0.41%) and UiPath (PATH -0.30%), you are weighing two distinct ways to bet on software infrastructure.

Fastly focuses on moving data closer to the user to reduce lag for websites and apps while managing the massive growth in artificial intelligence bot traffic. UiPath uses artificial intelligence to automate repetitive office tasks across entire organizations. While both are high-growth businesses among tech stocks, they operate in very different corners of the technology landscape.

The case for Fastly

Fastly operates an edge cloud platform that serves as a vital component for high-traffic websites. The company moves processing power closer to the end user to improve speed and security for global brands. Key customers include TikTok, though relying on a few major accounts adds a layer of risk to the business. Fastly also maintains strategic partnerships with providers like Comcast (CMCSA -0.88%) to expand its reach.

According to its latest annual report, filed for the fiscal year ended Dec. 31, 2025, revenue reached $624.0 million. This represents a growth rate of 14.8% compared with the prior year. While the business is not yet profitable, it reported a net loss of $121.7 million, which is an improvement over the previous year.

As of its December 2025 balance sheet, the debt-to-equity ratio is 0.5x. This ratio measures total debt against shareholder equity to show how much a company relies on borrowed money. The current ratio, which divides current assets by current liabilities, is 2.6x. Free cash flow reached $65.8 million, representing the cash remaining after the company pays for its operations and capital expenditures. Note that stock-based compensation (SBC) represented 124.2% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

The case for UiPath

UiPath provides a business orchestration and automation platform that coordinates artificial intelligence agents and human workers for complex workflows. The company focuses on enterprise-scale use cases, helping large organizations manage repetitive tasks across their systems. Its customer base has grown to include over 10,000 clients, with a strong emphasis on those contributing $100,000 or more in recurring revenue. UiPath has also expanded its capabilities through strategic partnerships with data leaders like Snowflake (SNOW -0.84%).

According to its latest annual report, filed for the fiscal year ended Jan. 31, 2026, revenue reached $1.6 billion. This indicates a year-over-year growth rate of 12.7%. The company achieved a net income of $282.3 million for the period, marking a significant transition into profitability compared with the net loss reported in the prior fiscal year.

As of its January 2026 balance sheet, the debt-to-equity ratio was zero, indicating a very low reliance on borrowed funds. The current ratio is 2.5x. Free cash flow for the period was $352.2 million. Note that stock-based compensation represented roughly 78.3% of operating cash flow.

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FSLY & PATH: Performance Comparison

Key Financial Metrics

FSLY – Fastly

$17.19

–0.41% (–$0.07)

PATH – UiPath

$13.10

–0.30% (–$0.04)

Market Cap

$2.8B

52wk Range

$7.87 – $34.82

Gross Margin

60.36%

P/E Ratio

-42.50

EPS (TTM)

-$0.41

Market Cap

$6.8B

52wk Range

$9.20 – $19.84

Gross Margin

82.14%

P/E Ratio

19.55

EPS (TTM)

$0.67

FSLY – Fastly

$17.19

–0.41% (–$0.07)

Market Cap

$2.8B

52wk Range

$7.87 – $34.82

Gross Margin

60.36%

P/E Ratio

-42.50

EPS (TTM)

-$0.41

PATH – UiPath

$13.10

–0.30% (–$0.04)

Market Cap

$6.8B

52wk Range

$9.20 – $19.84

Gross Margin

82.14%

P/E Ratio

19.55

EPS (TTM)

$0.67

Risk profile comparison

Fastly faces operational risks, including the potential for platform outages and performance degradation that could drive customers away. The company also deals with significant revenue concentration, as its top ten accounts comprise roughly 32% of its total revenue. Intense competition from public cloud giants like Amazon (AMZN +0.48%) and Microsoft (MSFT +0.36%) also pressures its market share and pricing power.

UiPath is heavily dependent on its top 10% of customers, making its results sensitive to their specific purchasing patterns. The market for automation is highly competitive, with pressure coming from established platform vendors like Microsoft and Salesforce (CRM -0.20%). Furthermore, the rapid development of agentic AI creates execution risks as the company must constantly evolve its technology to avoid being replaced by newer alternatives.

Valuation comparison

While Fastly trades at a lower P/S ratio, UiPath appears more attractively priced based on its Forward P/E and established profitability. The P/S ratio measures company value relative to sales over the past twelve months, while the Forward P/E compares the share price to future earnings estimates.

Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy for 2027?

Fastly and UiPath are a pair of mid-cap tech players trying to prove their relevance in an AI-heavy landscape. Between them, I would invest in Fastly.

Fastly is an underappreciated AI stock. Its focus on managing website traffic does not make it an obvious player in the artificial intelligence space. However, AI bots have scaled up tremendously in recent years, as they crawl the internet scraping content off websites.

This has made Fastly’s solutions critical to ensuring human traffic is prioritized, so users can quickly reach online destinations. As a result, its business is growing. In the third quarter, the company achieved record revenue of $190.2 million, representing 20% year-over-year growth.

Although UiPath is profitable, and its stock sports a better valuation, its business depends on its artificial intelligence bots helping organizations automate complex enterprise workflows. However, its core mechanics could become obsolete if it cannot stay ahead of newer autonomous agentic AI systems that its customers could switch to, potentially making UiPath’s offerings obsolete.

This may already be the case. UiPath’s fiscal Q2 revenue of $410.3 million was a 13% year-over-year increase compared to 17% growth in Q1. For fiscal Q3, the company forecasted sales of at least $440 million, which is about a 7% increase over 2025’s $411 million, suggesting its sales are slowing down.