Shares of the artificial intelligence (AI)-powered business automation company UiPath (PATH -15.01%) plunged today after the company released fiscal fourth-quarter revenue results and first-quarter sales guidance that were both below Wall Street's consensus estimates. UiPath's fiscal year 2025 ended Jan. 31.

UiPath's stock gave up 14.8% as of 10:39 a.m. ET as investors processed the latest results, adding to the company's already significant share price decline amid fears over a U.S.-led trade war.

Two misses and a beat

UiPath's non-GAAP (adjusted) earnings of $0.26 in the quarter were up 13% from the year-ago quarter and easily outpaced Wall Street's consensus estimate of $0.20 per share. But investors mostly ignored the company's earnings today and instead focused on the two areas where UiPath results fell short.

Specifically, the company's fourth-quarter sales of $424 million rose 5% from the year-ago quarter but were just below analysts' consensus estimate of $425 million. UiPath's management also issued first-quarter revenue guidance in the range of $330 million to $335 million, far below Wall Street's consensus estimate of $368 million.

Those two misses were compounded by comments made by Ashim Gupta, UiPath's CFO and chief operating officer. "Over the last several weeks we have seen increasing global macro economic uncertainty, particularly in the U.S. public sector, and this uncertainty is reflected both in our fiscal first quarter and full year 2026 financial outlook," he said.

Uncertainty looms

Gupta's comments are likely why investors reacted so strongly to UiPath's fourth-quarter results. Investors are starting to believe there's potential pain ahead for the U.S. economy as President Trump has launched escalating tariffs with trade partners.

While some tariff threats have been rescinded, the uncertainty is weighing down stocks and causing many companies to issue conservative guidance. Investors understand that ongoing tariffs could cause significant disruption in the economy and lead to rising inflation, just as it begins to moderate.

While tariffs may not directly affect all companies, UiPath and other tech companies could feel the effects of a general economic slowdown, if it occurs.