Guidewire Software (NYSE:GWRE – Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $0.99 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.06, Briefing.com reports. Guidewire Software had a net margin of 11.25% and a return on equity of 12.62%. The business had revenue of $411.09 million for the quarter, compared to analysts’ expectations of $402.61 million. During the same period in the prior year, the company posted $0.84 EPS. The business’s revenue for the quarter was up 15.3% on a year-over-year basis.
Here are the key takeaways from Guidewire Software’s conference call:
- Guidewire reported a strong fiscal 2026, with ARR of $1.242 billion, up 19% year over year, fully ramped ARR up 22%, total revenue up 23% to $1.475 billion, and operating cash flow up 30% to $390 million.
- Customer momentum and retention were standout themes: the company closed 62 core cloud deals during the year, including a long-term Nationwide cloud migration agreement, while gross ARR attrition fell below 1.5% overall and below 1% for core systems customers.
- New products gained rapid traction, with 28 ProNavigator wins and 12 PricingCenter wins for the year. Management highlighted Nationwide’s selection of PricingCenter as an important tier-1 validation and said AI capabilities are increasingly helping differentiate Guidewire’s core platform.
- Fiscal 2027 guidance calls for ARR growth of approximately 18% at the midpoint, below fiscal 2026’s 19% growth, partly because management expects attrition to normalize from unusually low levels. License revenue is expected to decline by about $46 million as customers continue migrating from on-premises products to the cloud.
- Profitability and cash generation are expected to continue improving: fiscal 2027 non-GAAP operating income is guided to $403 million-$423 million, operating cash flow to $445 million-$465 million, and subscription and support gross margin to 75%-76%, supporting ongoing share repurchases.
Guidewire Software Stock Performance
Guidewire Software stock opened at $202.22 on Friday. Guidewire Software has a fifty-two week low of $102.30 and a fifty-two week high of $272.60. The company has a market capitalization of $16.84 billion, a price-to-earnings ratio of 109.31 and a beta of 0.97. The stock has a fifty day moving average of $160.22 and a two-hundred day moving average of $146.26. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.44 and a current ratio of 2.44.
Guidewire Software News Summary
- Positive Sentiment: Fiscal Q4 results exceeded expectations: Guidewire reported adjusted earnings of $0.99 per share versus consensus estimates of roughly $0.93–$0.94, while revenue rose 15.3% year over year to $411.1 million, topping the $402.6 million estimate. EPS increased from $0.84 a year earlier. Guidewire Announces Fourth Quarter and Fiscal Year 2026 Financial Results
- Positive Sentiment: Demand and AI momentum remain encouraging: Management said insurers are deepening commitments to Guidewire’s core products and expanding into new pricing and artificial-intelligence-focused offerings, supporting the company’s longer-term growth outlook. Guidewire Q4 2026 Earnings Call Transcript
- Positive Sentiment: BTIG became more bullish: BTIG Research raised its price target from $175 to $230 and maintained a Buy rating, implying additional upside based on the supplied current-price reference. Guidewire Stock Price Expected to Rise, BTIG Research Analyst Says
- Neutral Sentiment: Fiscal 2027 revenue outlook is broadly in line for the full year: Guidewire projected approximately $1.7 billion in fiscal 2027 revenue, roughly matching consensus expectations.
- Negative Sentiment: Near-term guidance disappointed investors: First-quarter fiscal 2027 revenue guidance of $372 million to $378 million was below the $386.1 million analyst consensus. That cautious outlook is driving the share-price decline despite the quarterly earnings and revenue beats. Guidewire Shares Tumble on Weak First Quarter Guidance
Analysts Set New Price Targets
GWRE has been the subject of a number of research reports. Guggenheim lifted their price target on shares of Guidewire Software from $180.00 to $210.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Wells Fargo & Company reduced their price objective on Guidewire Software from $210.00 to $190.00 and set an “overweight” rating for the company in a report on Friday, June 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of Guidewire Software in a research report on Monday. Piper Sandler started coverage on Guidewire Software in a report on Monday, August 10th. They issued an “overweight” rating and a $210.00 target price on the stock. Finally, Stifel Nicolaus dropped their price target on Guidewire Software from $225.00 to $200.00 and set a “buy” rating for the company in a research report on Friday, June 5th. Thirteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $223.93.
View Our Latest Analysis on Guidewire Software
Insider Buying and Selling
In related news, CEO Michael Rosenbaum sold 1,200 shares of the business’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $204.44, for a total value of $245,328.00. Following the completion of the transaction, the chief executive officer owned 186,576 shares of the company’s stock, valued at approximately $38,143,597.44. The trade was a 0.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO David Peterson sold 2,500 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $200.00, for a total transaction of $500,000.00. Following the completion of the transaction, the chief accounting officer owned 9,787 shares in the company, valued at approximately $1,957,400. This trade represents a 20.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 47,093 shares of company stock valued at $7,185,902 over the last three months. Insiders own 0.46% of the company’s stock.
Institutional Trading of Guidewire Software
A number of hedge funds have recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new position in Guidewire Software in the 3rd quarter valued at $29,000. Advisors Asset Management Inc. acquired a new stake in shares of Guidewire Software during the first quarter worth $25,000. Daiwa Securities Group Inc. acquired a new stake in shares of Guidewire Software during the fourth quarter worth $76,000. Employees Retirement System of Texas grew its position in shares of Guidewire Software by 26.4% in the third quarter. Employees Retirement System of Texas now owns 781 shares of the technology company’s stock valued at $180,000 after purchasing an additional 163 shares during the period. Finally, Massar Capital Management LP purchased a new stake in shares of Guidewire Software in the second quarter valued at $207,000.
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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