Shares of UiPath fell after the business-automation company's quarterly results failed to quash investors' concerns about growing competition.

The stock declined 16%, to $15.29, midday Friday and is down 6.7% this year.

The slide came even after the company raised its outlook and beat Wall Street estimates across the board with its quarterly earnings.

The strong results weren't enough to mitigate concerns that intensifying competition in the agentic-artificial-intelligence sector will weaken UiPath's long-term growth, Oppenheimer analyst Brian Schwartz said.

The higher-than-expected results came mostly from lower costs and outperforming services revenue, rather than an acceleration in demand, Schwartz said. The business's growth is also slowing down, he said.

BMO analysts said the quarterly results reflected steady execution, but didn't wow.

"We would like to see more evidence of sustained growth as broader agentic computing grows before we consider getting more constructive on the shares," the BMO analysts said.