Is UiPath (PATH) Halal? 2026 AAOIFI Analysis
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AAOIFI screening result
PATH: Non-compliant
UiPath's software business passes and debt is low, but cash and interest-bearing securities equal 31.54% of market capitalization, narrowly exceeding the 30% AAOIFI limit.
Based on Halalytic's AAOIFI 30/30/5 screen dated July 11, 2026, UiPath (PATH) is non-compliant. This is a dated screening snapshot, not a permanent fatwa: company filings, market capitalization, and scholarly analysis can change the result.
What does UiPath do?
UiPath provides enterprise automation software that coordinates AI agents, software robots, people, and business systems. Selling automation software is generally permissible. Its current failure arises from holding a large cash and investment balance relative to its market value, not from the core product.
Primary company source: UiPath — About us.
PATH AAOIFI screening breakdown
| Screen | Result | AAOIFI limit | Status |
|---|---|---|---|
| Interest-bearing debt / market cap | 1.37% | Below 30% | Pass |
| Cash and interest-bearing securities / market cap | 31.54% | Below 30% | Fail |
| Non-permissible income / revenue | 2.87% | Below 5% | Pass |
Business activity: Pass · Sector: Technology · Industry: Enterprise automation software. The income screen uses reported interest income as a proxy when available.
Why the result can change
PATH is close to the threshold and therefore especially sensitive to market price and treasury changes. A higher market capitalization could bring the ratio below 30% without the company spending cash; a lower share price could move it further away. Investors should not assume today's narrow failure is permanent—or that a future pass will persist.
- Quarterly cash, marketable securities, and interest income
- Share-price changes affecting the market-cap denominator
- Capital allocation through buybacks, acquisitions, or operating investment
Investment questions beyond halal status
Passing a Shariah screen does not mean a stock is undervalued, financially safe, or suitable for a particular portfolio. A non-compliant verdict is also not a prediction that the share price will fall.
- Can agentic automation sustain revenue growth?
- How defensible is UiPath against large platform vendors?
- When will operating leverage translate into durable free cash flow?