Guidewire Software (NYSE:GWRE) Releases Earnings Results

Guidewire Software (NYSE:GWRE) posted its earnings results on Thursday. The technology company reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.06, Briefing.com reports. Guidewire Software had a net margin of 9.44% and a return on equity of 12.09%. The business had revenue of $411.09 million for the quarter, compared to analyst estimates of $402.61 million. During the same period in the prior year, the company posted $0.84 EPS. The company’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 Trading Down 19.9%

Shares of Guidewire Software stock opened at $162.48 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.44 and a quick ratio of 2.44. The stock’s 50 day simple moving average is $161.05 and its 200-day simple moving average is $146.37. The stock has a market cap of $13.53 billion, a P/E ratio of 99.68 and a beta of 0.97. Guidewire Software has a 1-year low of $102.30 and a 1-year high of $272.60.

Guidewire Software News Summary

Here are the key news stories impacting Guidewire Software this week:

• Positive Sentiment: Guidewire reported fourth-quarter adjusted earnings of $0.99 per share, above the roughly $0.93–$0.94 consensus, while revenue of $411.1 million exceeded estimates of $402.6 million and increased 15.3% year over year. Guidewire Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Management highlighted strong demand for its core insurance software, new pricing products and artificial-intelligence offerings. Fiscal 2027 revenue guidance of approximately $1.7 billion was broadly in line with full-year expectations, and analysts largely retained bullish views. These Analysts Revise Their Forecasts On Guidewire Software After Q4 Results
• Neutral Sentiment: Citigroup raised its price target to $181 but maintained a Neutral rating. Oppenheimer, Wells Fargo, Piper Sandler, RBC, Citizens JMP and DA Davidson reiterated positive ratings and set targets ranging from $195 to $222, while Needham maintained a Hold rating. Citigroup Adjusts Guidewire Software Price Target
• Negative Sentiment: The primary pressure came from fiscal 2027 first-quarter revenue guidance of $372 million–$378 million, below the $386.1 million analyst consensus. Reports also pointed to lower quarterly profit and a cautious outlook, causing investors to discount the earnings beat and question the pace of near-term growth. Guidewire Software Q4 Income Declines and Issues FY27 Outlook

Analysts Set New Price Targets

A number of research firms recently weighed in on GWRE. Robert W. Baird upped their price target on Guidewire Software from $202.00 to $235.00 and gave the stock an “outperform” rating in a report on Monday, August 31st. BTIG Research boosted their price objective on Guidewire Software from $175.00 to $230.00 and gave the company a “buy” rating in a research report on Wednesday. The Goldman Sachs Group reduced their price objective on shares of Guidewire Software from $255.00 to $225.00 and set a “buy” rating for the company in a research report on Friday, June 5th. Wells Fargo & Company boosted their price target on Guidewire Software from $190.00 to $195.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Stifel Nicolaus reduced their price objective on Guidewire Software from $225.00 to $200.00 and set a “buy” rating for the company in a research note on Friday, June 5th. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $216.23.

Insider Buying and Selling

In other Guidewire Software news, insider James King sold 1,684 shares of the company’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $130.64, for a total value of $219,997.76. Following the completion of the sale, the insider directly owned 30,018 shares in the company, valued at $3,921,551.52. This represents a 5.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Rosenbaum sold 1,200 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $204.44, for a total value of $245,328.00. Following the completion of the sale, the chief executive officer directly owned 186,576 shares of the company’s stock, valued at $38,143,597.44. This trade represents a 0.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 47,093 shares of company stock worth $7,185,902 in the last three months. Company insiders own 0.46% of the company’s stock.

Institutional Investors Weigh In On Guidewire Software

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Alliancebernstein L.P. increased its stake in Guidewire Software by 405.1% during the second quarter. Alliancebernstein L.P. now owns 538,303 shares of the technology company’s stock worth $126,743,000 after acquiring an additional 431,725 shares during the last quarter. Stockbridge Partners LLC lifted its stake in shares of Guidewire Software by 39.0% in the 4th quarter. Stockbridge Partners LLC now owns 1,445,206 shares of the technology company’s stock valued at $290,501,000 after purchasing an additional 405,850 shares during the last quarter. Qube Research & Technologies Ltd grew its holdings in shares of Guidewire Software by 34.4% during the 3rd quarter. Qube Research & Technologies Ltd now owns 982,747 shares of the technology company’s stock worth $225,894,000 after purchasing an additional 251,280 shares during the period. AQR Capital Management LLC increased its position in shares of Guidewire Software by 18.9% during the 3rd quarter. AQR Capital Management LLC now owns 1,271,528 shares of the technology company’s stock worth $292,146,000 after purchasing an additional 202,064 shares during the last quarter. Finally, Freestone Grove Partners LP increased its position in shares of Guidewire Software by 291.9% during the 4th quarter. Freestone Grove Partners LP now owns 250,570 shares of the technology company’s stock worth $50,367,000 after purchasing an additional 186,633 shares during the last quarter.

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.