Guidewire Software (NYSE:GWRE) Issues Earnings Results

Guidewire Software (NYSE:GWRE) released its earnings results on Thursday. The technology company reported $1.17 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.40, FiscalAI reports. The firm had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.58%. The firm’s revenue for the quarter was up 24.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.51 earnings per share.

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%

Guidewire Software stock opened at $169.01 on Friday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 3.48 and a current ratio of 3.48. Guidewire Software has a one year low of $120.37 and a one year high of $272.60. The company has a 50-day simple moving average of $154.71 and a 200-day simple moving average of $200.92. The firm has a market capitalization of $14.37 billion, a P/E ratio of 76.82, a P/E/G ratio of 10.37 and a beta of 1.06.

Guidewire Software News Summary

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

• Positive Sentiment: Q2 results beat and company raised fiscal?2026 outlook — Guidewire reported revenue of $359.1M (up 24% YoY), non?GAAP EPS of $1.17 (vs. $0.77 estimate) and raised full?year revenue and profit targets; management cited durable demand for large, multi?year deals. Guidewire Announces Second Quarter Fiscal Year 2026 Financial Results
• Positive Sentiment: Cloud & AI tailwinds highlighted as growth drivers — Coverage and management commentary point to accelerating cloud migrations and AI?driven modernization that are lifting ARR, subscription revenue and multi?year deal activity. GWRE Q4 deep dive: Cloud momentum and AI tailwinds shape upbeat outlook
• Positive Sentiment: Key metrics show strong subscription traction — Subscription & support revenue grew ~33% and commentary stressed 22% ARR growth, supporting a recurring?revenue story that investors favor. Guidewire Q2 Earnings & Revenues Beat Estimates, Up Y/Y, Stock Rises
• Positive Sentiment: Capital return boost — Company disclosed a new $500M share repurchase authorization, which can support near?term stock demand and EPS accretion. Guidewire shares rise after Q2 results beat expectations and full-year outlook was raised
• Neutral Sentiment: Analysts revise models and targets — Several firms updated forecasts after the quarter; some raised targets while others trimmed their price targets (mix of upgrades and cuts leaves consensus view mixed). These Analysts Revise Their Forecasts On Guidewire Software Following Q2 Results
• Negative Sentiment: Significant insider selling noted — Reports show extensive insider sales over recent months, which investors may view as a cautionary signal despite strong operating results. Guidewire shares rise after Q2 results beat expectations and full-year outlook was raised

Insider Activity at Guidewire Software

In other Guidewire Software news, insider James Winston King sold 1,860 shares of the business’s 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 completion of the transaction, the insider directly owned 33,702 shares of the company’s stock, valued at $6,571,890. The trade was a 5.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Michael George Rosenbaum sold 1,200 shares of the company’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $125.50, for a total transaction of $150,600.00. Following the completion of the transaction, the chief executive officer owned 229,543 shares of the company’s stock, valued at approximately $28,807,646.50. This trade represents a 0.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 42,760 shares of company stock worth $7,978,508 in the last ninety days. 0.46% of the stock is owned by insiders.

Hedge Funds Weigh In On Guidewire Software

Several large investors have recently bought and sold shares of the stock. Measured Wealth Private Client Group LLC acquired a new stake in shares of Guidewire Software in the 3rd quarter worth approximately $29,000. Advisors Asset Management Inc. acquired a new position in shares of Guidewire Software during the first quarter valued at approximately $25,000. Daiwa Securities Group Inc. acquired a new position in shares of Guidewire Software during the fourth quarter valued at approximately $76,000. Employees Retirement System of Texas raised its holdings in Guidewire Software by 26.4% during the third quarter. Employees Retirement System of Texas now owns 781 shares of the technology company’s stock worth $180,000 after purchasing an additional 163 shares in the last quarter. Finally, Massar Capital Management LP bought a new stake in Guidewire Software during the second quarter worth approximately $207,000.

Guidewire Software declared that its Board of Directors has initiated a stock repurchase plan on Thursday, January 8th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the technology company to buy up to 3.1% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have recently commented on GWRE shares. Zacks Research lowered shares of Guidewire Software from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 2nd. Citizens Jmp reiterated a “market outperform” rating and set a $281.00 price objective on shares of Guidewire Software in a research note on Wednesday, December 10th. Weiss Ratings reissued a “hold (c)” rating on shares of Guidewire Software in a report on Thursday, January 22nd. BTIG Research lifted their target price on Guidewire Software from $175.00 to $200.00 and gave the company a “buy” rating in a research note on Friday. Finally, Citigroup upped their target price on Guidewire Software from $242.00 to $245.00 and gave the company a “neutral” rating in a report on Friday, December 5th. Eleven investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $250.15.

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.