Guidewire Software (NYSE:GWRE – Get Free Report) issued its earnings results on Thursday. The technology company reported $0.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.03, FiscalAI reports. The business had revenue of $372.54 million during the quarter, compared to analysts’ expectations of $355.92 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The business’s revenue for the quarter was up 26.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.88 earnings per share.
Here are the key takeaways from Guidewire Software’s conference call:
- Guidewire said Q3 was a strong quarter, with revenue of $373 million up 27% year over year and ARR of $1.147 billion up 19%, both ahead of expectations. Management also said profitability and cash flow came in better than planned.
- The company closed 11 cloud deals in the quarter, including new core system wins and multiple ProNavigator and PricingCenter deals, showing broad demand across its platform. Management emphasized continued momentum in large insurance modernization projects globally.
- Guidewire highlighted strong early traction in ProNavigator and PricingCenter, with customers using these tools to operationalize AI, improve pricing agility, and speed up underwriting and claims workflows. Executives said these newer products are becoming an increasingly important part of the company’s growth story.
- The company said AI-driven development tools are materially improving productivity, with one example pointing to about a 35% improvement in migration timelines and potential for further gains. Guidewire framed this as a tailwind that could accelerate cloud migrations and modernization decisions.
- Guidewire raised its full-year FY2026 outlook, increasing expected total revenue to $1.46 billion-$1.47 billion and operating income and cash flow guidance as well. Management also said Q4 pipeline visibility is strong and that deal timing, not macro weakness, caused the Q3 ARR miss versus internal expectations.
Guidewire Software Stock Performance
Shares of NYSE GWRE opened at $151.27 on Friday. The firm has a 50 day moving average of $140.32 and a 200 day moving average of $161.08. The company has a current ratio of 2.93, a quick ratio of 2.93 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $12.81 billion, a price-to-earnings ratio of 68.76 and a beta of 0.93. Guidewire Software has a 12-month low of $115.57 and a 12-month high of $272.60.
Guidewire Software News Summary
- Positive Sentiment: Guidewire beat estimates on both the top and bottom lines, posting $0.82 EPS versus the $0.79 consensus and $372.5 million in revenue versus $355.9 million expected. Revenue also rose 26.9% year over year, showing strong demand for its insurance software platform. Article Title
- Positive Sentiment: The company said its third-quarter performance reinforced confidence in business momentum and pointed to a record fourth quarter, which can support investor optimism about continued growth. Article Title
- Neutral Sentiment: Guidewire also lifted revenue guidance for fiscal 2026 and the fourth quarter, with outlooks above consensus, but the available filings did not clearly show the EPS guide in the provided text. Article Title
- Negative Sentiment: Even with the beat-and-raise setup, GWRE traded lower as investors appeared to weigh that earnings per share was down from $0.88 a year ago and may be looking for even stronger profit expansion from a company valued at a premium multiple. Article Title
Insider Transactions at Guidewire Software
In related news, CEO Michael George Rosenbaum sold 1,200 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $158.92, for a total transaction of $190,704.00. Following the completion of the sale, the chief executive officer directly owned 208,006 shares in the company, valued at approximately $33,056,313.52. The trade was a 0.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 33,679 shares of company stock worth $5,214,878 in the last three months. Insiders own 0.46% of the company’s stock.
Institutional Trading of Guidewire Software
Several large investors have recently added to or reduced their stakes in the business. Stockbridge Partners LLC grew its position in Guidewire Software by 39.0% during the fourth quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after buying an additional 405,850 shares during the period. AQR Capital Management LLC grew its position in Guidewire Software by 3.6% during the fourth quarter. AQR Capital Management LLC now owns 1,316,817 shares of the technology company’s stock valued at $264,693,000 after buying an additional 45,289 shares during the period. Qube Research & Technologies Ltd grew its position in Guidewire Software by 34.4% during the third quarter. Qube Research & Technologies Ltd now owns 982,747 shares of the technology company’s stock valued at $225,894,000 after buying an additional 251,280 shares during the period. Wasatch Advisors LP grew its position in Guidewire Software by 6.7% during the third quarter. Wasatch Advisors LP now owns 784,524 shares of the technology company’s stock valued at $180,331,000 after buying an additional 48,956 shares during the period. Finally, SurgoCap Partners LP grew its position in Guidewire Software by 6.6% during the third quarter. SurgoCap Partners LP now owns 750,174 shares of the technology company’s stock valued at $172,435,000 after buying an additional 46,639 shares during the period.
Analysts Set New Price Targets
GWRE has been the subject of several recent analyst reports. Zacks Research cut shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a report on Wednesday. Stifel Nicolaus decreased their price objective on shares of Guidewire Software from $300.00 to $250.00 and set a “buy” rating for the company in a report on Friday, March 6th. BTIG Research reissued a “buy” rating and set a $200.00 price objective on shares of Guidewire Software in a report on Tuesday. Finally, DA Davidson reissued a “buy” rating and set a $246.00 price objective on shares of Guidewire Software in a report on Tuesday. Eleven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $251.50.
Get Our Latest Stock Analysis on GWRE
About Guidewire Software
Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company’s offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.
Guidewire’s core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.
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