Guidewire Software (NYSE:GWRE) Posts Quarterly Earnings Results

Guidewire Software (NYSE:GWRE) issued its earnings results on Thursday. The technology company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.79 by $0.03, FiscalAI reports. Guidewire Software had a net margin of 11.25% and a return on equity of 12.23%. The company had revenue of $372.54 million for the quarter, compared to analyst estimates of $355.92 million. During the same period in the previous year, the firm earned $0.88 EPS. The business’s revenue was up 26.9% on a year-over-year basis.

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 Down 9.5%

GWRE opened at $136.82 on Friday. The firm has a 50 day moving average price of $140.07 and a 200 day moving average price of $160.91. The company has a market cap of $11.58 billion, a PE ratio of 73.96 and a beta of 0.93. Guidewire Software has a 1 year low of $115.57 and a 1 year high of $272.60. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.93 and a current ratio of 2.93.

Insider Transactions at Guidewire Software

In related news, CEO Michael George Rosenbaum sold 1,200 shares of the 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 owned 208,006 shares of the company’s stock, valued at approximately $33,056,313.52. This represents a 0.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 33,679 shares of company stock worth $5,214,878. 0.46% of the stock is currently owned by corporate insiders.

Institutional Trading of Guidewire Software

Large investors have recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new stake in Guidewire Software in the third quarter valued at approximately $29,000. Advisors Asset Management Inc. acquired a new stake in Guidewire Software in the first quarter valued at approximately $25,000. Daiwa Securities Group Inc. acquired a new stake in Guidewire Software in the fourth quarter valued at approximately $76,000. Employees Retirement System of Texas grew its position 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 acquiring an additional 163 shares in the last quarter. Finally, Massar Capital Management LP acquired a new stake in Guidewire Software in the second quarter valued at approximately $207,000.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on GWRE shares. Wells Fargo & Company decreased their price objective on shares of Guidewire Software from $210.00 to $190.00 and set an “overweight” rating on the stock in a research report on Friday. BTIG Research restated a “buy” rating and issued a $200.00 target price on shares of Guidewire Software in a report on Tuesday. The Goldman Sachs Group reduced their target price on shares of Guidewire Software from $255.00 to $225.00 and set a “buy” rating on the stock in a report on Friday. DA Davidson restated a “buy” rating and issued a $246.00 target price on shares of Guidewire Software in a report on Tuesday. Finally, Zacks Research lowered shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Monday, May 25th. Eleven analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Guidewire Software has a consensus rating of “Moderate Buy” and an average target price of $231.00.

Guidewire Software News Summary

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

• Positive Sentiment: GWRE beat fiscal Q3 expectations with EPS of $0.82 versus $0.79 expected and revenue of $372.54 million versus $355.92 million expected, with revenue up 26.9% year over year. Article Title
• Positive Sentiment: Management raised outlook for both the fourth quarter and full fiscal 2026, and said recurring demand remains strong as insurers continue modernizing core systems. Article Title
• Positive Sentiment: ARR grew 19%, reinforcing the company’s subscription and cloud momentum, which is typically viewed favorably by investors. Article Title
• Neutral Sentiment: Several major brokerages cut price targets, including Goldman Sachs, Stifel, RBC, Wells Fargo, and Citi JMP, but most reiterated bullish ratings and still implied meaningful upside from current levels. Article Title
• Negative Sentiment: Despite the earnings beat, the stock has been declining as the market appears to be reacting to the lowered valuation targets and broader software-sector pressure rather than the company’s operating results. Article Title

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.