Guidewire Software (NYSE:GWRE) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Guidewire Software (NYSE:GWRE) posted its quarterly 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 11.25% and a return on equity of 12.62%. Guidewire Software’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same period last year, the firm earned $0.84 earnings per share.

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 Up 4.9%

Shares of GWRE traded up $9.46 on Thursday, reaching $202.22. 2,089,579 shares of the company’s stock were exchanged, compared to its average volume of 1,569,007. The business has a 50 day moving average price of $158.37 and a two-hundred day moving average price of $145.73. Guidewire Software has a 12 month low of $102.30 and a 12 month high of $272.60. The stock has a market capitalization of $16.84 billion, a P/E ratio of 109.31 and a beta of 0.96. The company has a current ratio of 2.44, a quick ratio of 2.44 and a debt-to-equity ratio of 0.51.

Analyst Upgrades and Downgrades

Several research firms recently commented on GWRE. Weiss Ratings restated a “hold (c)” rating on shares of Guidewire Software in a research report on Monday. BTIG Research upped their price target on Guidewire Software from $175.00 to $230.00 and gave the company a “buy” rating in a research report on Wednesday. Wells Fargo & Company cut 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. Oppenheimer boosted their target price on shares of Guidewire Software from $180.00 to $200.00 and gave the company an “outperform” rating in a research note on Monday, August 17th. Finally, Royal Bank Of Canada cut their price target on shares of Guidewire Software from $250.00 to $215.00 and set an “outperform” rating for the company in a report on Friday, June 5th. Thirteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $223.93.

Insider Buying and Selling at Guidewire Software

In other Guidewire Software news, President John Mullen sold 14,400 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $185.00, for a total transaction of $2,664,000.00. Following the completion of the sale, the president owned 116,715 shares in the company, valued at approximately $21,592,275. The trade was a 10.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible 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 stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $200.00, for a total value of $500,000.00. Following the completion of the transaction, the chief accounting officer directly owned 9,787 shares in the company, valued at approximately $1,957,400. This trade represents a 20.35% decrease in their position. The SEC filing for this sale provides additional information. 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 over the last quarter. 0.46% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Guidewire Software

Several institutional investors have recently modified their holdings of GWRE. Advisors Asset Management Inc. acquired a new stake in shares of Guidewire Software in the 1st quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC acquired a new position in Guidewire Software during the third quarter valued at approximately $29,000. Daiwa Securities Group Inc. bought a new stake in Guidewire Software in the fourth quarter valued at approximately $76,000. Employees Retirement System of Texas increased its stake in 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 in the last quarter. Finally, UMB Bank n.a. raised its holdings in Guidewire Software by 15.8% in the fourth quarter. UMB Bank n.a. now owns 990 shares of the technology company’s stock worth $199,000 after purchasing an additional 135 shares during the period.

Trending Headlines about Guidewire Software

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

• Positive Sentiment: Guidewire reported adjusted fourth-quarter earnings of $0.99 per share, above the Zacks consensus estimate of $0.94 and up from $0.84 a year earlier. Quarterly revenue also increased 15.3% year over year. Guidewire Software Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Management cited expanding customer demand, deeper commitments to Guidewire’s core products, and growing adoption of new pricing and artificial-intelligence-focused offerings. Fiscal 2027 revenue guidance of approximately $1.7 billion was broadly in line with consensus expectations. Guidewire Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: BTIG Research raised its price target to $230 and maintained a Buy rating, indicating that some analysts remain constructive on Guidewire’s long-term growth prospects.
• Neutral Sentiment: Recent institutional activity was mixed but included substantial new or increased positions from California State Teachers’ Retirement System, Bamco, Linonia Partnership, Route One Investment and VanEck.
• Negative Sentiment: First-quarter fiscal 2027 revenue guidance of $372 million to $378 million fell short of the $386.1 million consensus estimate. This suggests a slower start to the new fiscal year and was the primary catalyst for the selloff. Guidewire Shares Tumble on Weak First Quarter Guidance
• Negative Sentiment: The stock’s reaction is amplified by its elevated valuation—approximately 109 times earnings—leaving limited room for disappointing guidance. A separate financial data report listed quarterly EPS at $0.55 versus a $0.93 estimate, creating some inconsistency with the adjusted-EPS figure reported by Zacks.
• Negative Sentiment: CEO Michael Rosenbaum sold 1,200 shares for approximately $245,000 under a prearranged Rule 10b5-1 plan. The sale was small relative to his remaining stake and appears scheduled, but it adds modest insider-selling pressure.

Guidewire Software Company Profile

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.