Upland Software UPLD shares have surged 76.3% in the trailing six-month period, outperforming the broader Zacks Computer & Technology sector’s return of 1.1% and the Zacks Internet - Software industry’s rise of 14.7%.

The outperformance can be attributed to UPLD’s strong focus on customer expansion and successful AI integrations. 

In the third quarter of 2024, UPLD added 122 new customers, including 18 major accounts, and expanded relationships with 312 existing customers, 27 of which were major expansions. UPLD’s new and expanded customers were attracted to its growing portfolio of generative AI solutions.

Given a strong AI portfolio and expanding clientele, is UPLD stock an attractive investment opportunity? Let’s dig deep to find out.

UPLD Shares Beat Sector, Industry

Image Source: Zacks Investment Research

Upland Drives Growth With AI-Powered Solutions

Upland’s efforts in integrating generative AI into its solutions proved instrumental in attracting new customers and deepening relationships with existing ones.

In December 2024, UPLD announced the launch of Altify MaxAI, an AI-powered enhancement to its Altify account planning and deal management software. 

The launch leverages generative AI to streamline complex sales processes, offering features like automated contact identification, critical buyer insights, actionable deal summaries, and strategic account and deal planning to significantly boost sales productivity. 

By implementing AI-driven solutions like Altify MaxAI, Upland reinforced its commitment to optimizing sales performance and accelerating customer acquisition.

Beyond Altify MaxAI, Upland also showcased the impact of its broader AI-driven solutions portfolio. The company highlighted its Upland RightAnswers and Upland BA Insight solutions as core drivers in attracting new business and solidifying its market position. 

Upland RightAnswers, an AI-powered knowledge management solution, demonstrated its leadership with 17 badges in the third quarter of 2024, reinforcing its value to enterprises seeking efficient information management. Meanwhile, Upland BA Insight, an AI enterprise search solution, achieved multiple new recognitions, underscoring its ability to deliver enhanced search and discovery experiences.

Upland Expands AI and Partnerships With Key Players

Upland’s expanding partner base, which includes Microsoft MSFT and Konica Minolta KNCAY, has been a key catalyst.

In December 2024, UPLD announced that Upland InterFAX had expanded its partnership with Konica Minolta to provide secure, cloud-based fax solutions integrated into Konica Minolta’s bizhub One i-Series Multi-Function Printer across the United States and Canada.

In the third quarter of 2024, Upland announced the availability of BA Insight for Microsoft Azure AI Search in the Microsoft Azure Marketplace. This allows customers to seamlessly integrate BA Insight’s user experience platform and over 90 connectors with Azure AI Search for intelligent, secure, and efficient content search without navigating multiple systems.

Upland also focuses on several AI initiatives, including integrating AI-powered features into products like Upland Qvidian. The partnership with International Business Machine IBM WatsonX for AI-driven solutions has enhanced product capabilities and attracts enterprise customers.

The company’s partnership with IBM provides advanced AI functionalities and integrations, which help Upland deliver more value to its enterprise customers and meet the needs for data privacy and compliance.

Upland’s integration of AI across its solutions has significantly boosted sales productivity and customer relationships. With continued advancements, Upland is set to strengthen its position as a leader in AI-powered enterprise tools.

However, Upland is suffering from a planned runoff of Sunset asset revenue, negatively impacting its overall revenues.

Earnings Estimate Revisions Show Mix Trend for UPLD

For 2025, the Zacks Consensus Estimate for earnings is pegged at 99 cents per share, which remained unchanged in the past 30 days. The figure implies a year-over-year decline of 4.81%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $266.90 million, suggesting a decline of 2.89% from 2024’s estimated figure of $274.83 million.

UPLD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average surprise being 10.44%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With UPLD Shares?

Upland Software shares are cheap, as suggested by a Value Score of A.

The forward 12-month Price/Sales ratio for UPLD stands at 0.43, lower than the industry’s 3.01.

P/S Ratio (F12M)

Image Source: Zacks Investment Research

UPLD’s robust portfolio and expanding partner base are key drivers that make the stock attractive for long-term investors. The stock’s attractive valuation also makes it worth investing in right now.

At present, Upland sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

International Business Machines Corporation (IBM) : Free Stock Analysis Report

Konica Minolta Inc. (KNCAY) : Free Stock Analysis Report

Upland Software, Inc. (UPLD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research