Guidewire Software (NYSE:GWRE) Announces Earnings Results

Guidewire Software (NYSE:GWRE) issued its quarterly earnings results on Thursday. The technology company reported $1.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.77 by $0.40, FiscalAI reports. Guidewire Software had a net margin of 7.23% and a return on equity of 10.15%. The firm had revenue of $359.10 million during the quarter, compared to the consensus estimate of $342.88 million. During the same period in the prior year, the firm earned $0.51 EPS. The business’s revenue was up 24.0% on a year-over-year basis.

Here are the key takeaways from Guidewire Software’s conference call:

• Guidewire raised its full-year outlook after a strong Q2, reporting ARR of $1.121B (22% YoY) and increasing FY ARR guidance to $1.229B–$1.237B with total revenue growth guidance now at ~20%.
• Sales momentum accelerated with 15 InsuranceSuite cloud deals (plus InsuranceNow wins), notable new/expand deals including Aviva UK and Tokio Marine, and fully ramped ARR reaching $1.42B, while RPO grew to $3.5B (+63% YoY).
• Customer durability remains a core strength—InsuranceSuite ARR retention exceeded 99% (TTM) and there were virtually no >$1M ARR customers choosing to replace Guidewire over the last five years.
• Product and AI traction is building—embedded offerings drove 25 deals for data & analytics, ProNavigator closed 9 deals in its first quarter, and PricingCenter landed its first deal, positioning Guidewire to benefit from insurers’ rush to modernize for generative AI.
• Financials show healthy subscription gross margins (~75%) and $1.35B in cash, with $148M of share repurchases done and ~$490M remaining, while services margins are improving but remain relatively low—a mixed signal on near-term margin mix.

Guidewire Software Stock Up 5.1%

Shares of GWRE opened at $161.62 on Friday. The company has a market capitalization of $13.74 billion, a P/E ratio of 153.93, a PEG ratio of 9.91 and a beta of 1.06. Guidewire Software has a one year low of $120.37 and a one year high of $272.60. The business’s 50 day simple moving average is $155.43 and its 200-day simple moving average is $201.24. The company has a debt-to-equity ratio of 0.44, a current ratio of 3.48 and a quick ratio of 3.48.

Guidewire Software declared that its board has approved a share buyback plan on Thursday, January 8th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the technology company to purchase up to 3.1% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Analyst Ratings Changes

GWRE has been the topic of a number of recent research reports. Oppenheimer decreased their target price on Guidewire Software from $300.00 to $250.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 24th. Citigroup lifted their price objective on Guidewire Software from $242.00 to $245.00 and gave the stock a “neutral” rating in a report on Friday, December 5th. DA Davidson upgraded Guidewire Software from a “neutral” rating to a “buy” rating and upped their target price for the company from $246.00 to $250.00 in a research note on Wednesday, December 17th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $281.00 target price on shares of Guidewire Software in a research report on Wednesday, December 10th. Finally, Wall Street Zen lowered shares of Guidewire Software from a “buy” rating to a “hold” rating in a report on Friday, November 28th. Eleven research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $257.85.

Insider Transactions at Guidewire Software

In other Guidewire Software news, insider James Winston King sold 1,860 shares of the stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $195.00, for a total transaction of $362,700.00. Following the sale, the insider owned 33,702 shares of the company’s stock, valued at $6,571,890. This represents a 5.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Jeffrey Elliott Cooper sold 216 shares of Guidewire Software stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $180.87, for a total value of $39,067.92. Following the completion of the sale, the chief financial officer directly owned 72,753 shares of the company’s stock, valued at $13,158,835.11. This trade represents a 0.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 42,760 shares of company stock worth $7,978,508. Insiders own 0.46% of the company’s stock.

Hedge Funds Weigh In On Guidewire Software

Institutional investors have recently modified their holdings of the stock. American Trust raised its position in shares of Guidewire Software by 3.9% in the 3rd quarter. American Trust now owns 1,632 shares of the technology company’s stock valued at $375,000 after acquiring an additional 61 shares during the period. Vident Advisory LLC raised its holdings in Guidewire Software by 1.7% in the third quarter. Vident Advisory LLC now owns 4,074 shares of the technology company’s stock worth $936,000 after purchasing an additional 70 shares during the period. Advisory Services Network LLC raised its holdings in Guidewire Software by 6.8% in the third quarter. Advisory Services Network LLC now owns 1,880 shares of the technology company’s stock worth $432,000 after purchasing an additional 120 shares during the period. Measured Wealth Private Client Group LLC bought a new position in shares of Guidewire Software during the third quarter worth $29,000. Finally, Meeder Advisory Services Inc. grew its holdings in shares of Guidewire Software by 8.1% in the 4th quarter. Meeder Advisory Services Inc. now owns 1,697 shares of the technology company’s stock valued at $341,000 after buying an additional 127 shares during the period.

Guidewire Software News Roundup

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

• Positive Sentiment: Guidewire raised its FY2026 revenue outlook to about $1.448 billion, citing acceleration from large, multi‑year deals and AI-driven momentum — a direct catalyst for upward revisions to revenue expectations and investor sentiment. Guidewire raises fiscal 2026 revenue outlook to $1.448B as large deals and AI momentum accelerate
• Positive Sentiment: Q2 results beat across the board: EPS $1.17 vs. $0.77 est., revenue $359.1M vs. $342.9M est.; management pointed to durable demand, large deals and AI product traction as drivers — the core reason markets are bidding the stock higher. Guidewire Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Market reaction: shares jumped intraday after the beat and bullish guidance, with coverage noting a ~7% surge on the Q2 beat — signaling strong investor appetite. Guidewire shares surge 7% on strong second quarter beat
• Neutral Sentiment: Earnings‑call highlights and commentary emphasize strong ARR growth, cloud adoption and AI-enabled product momentum — useful for modeling sustained subscription revenue but not additional immediate financial detail. Guidewire Software Inc (GWRE) Q2 2026 Earnings Call Highlights: Strong ARR Growth and Cloud …
• Neutral Sentiment: Full Q2 earnings transcript and analyst recaps provide color on deal cadence, partner ecosystem and AI product road map — important for long‑term thesis but less likely to change near‑term estimates than the actual beats/guidance. Guidewire Software, Inc. (GWRE) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst metric comparisons (Zacks and others) confirm the beat on top and bottom lines and provide detail on ARR/cloud mix and margin trends — useful for updating models but largely corroborative. Guidewire Software (GWRE) Q2 Earnings and Revenues Surpass Estimates

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.