GUIDEWIRE SOFTWARE INC (NYSE:GWRE) Surpasses Q4 Earnings and Revenue Estimates

Guidewire Software Inc (NYSE:GWRE) delivered a robust fourth-quarter performance for fiscal year 2025, surpassing analyst expectations on both revenue and earnings per share. The company reported revenue of $356.6 million, a 22% year-over-year increase, and non-GAAP earnings per share of $0.84. These results exceeded the consensus estimates of $344.6 million in revenue and $0.65 per share, reflecting strong execution and accelerating growth in key business segments.

Financial Performance Versus Estimates

The quarterly results highlight significant outperformance relative to market expectations:

• Revenue: $356.6 million actual vs. $344.6 million estimated (3.5% beat)
• Non-GAAP EPS: $0.84 actual vs. $0.65 estimated (29.2% beat)

Subscription and support revenue showed particularly strong growth, increasing 33% year-over-year to $201.9 million, underscoring the company’s successful transition toward cloud-based solutions. License revenue grew modestly by 5%, while services revenue increased 20%, indicating balanced growth across the company’s portfolio.

Market Reaction

Following the earnings release, Guidewire’s stock surged 14.8% in after-hours trading, reflecting investor optimism about the company’s performance and future prospects. This positive market response suggests that the results were not only better than expected but also indicative of underlying operational strength and strategic progress.

Key Highlights from the Press Release

Chief Executive Officer Mike Rosenbaum emphasized the company’s successful closure of the fiscal year, noting the signing of 19 cloud deals, including a significant 10-year agreement with a major Tier-1 insurer. This achievement pushed annual recurring revenue (ARR) above $1 billion, reaching $1.041 billion as of July 31, 2025—a 19% year-over-year increase on a constant currency basis.

Chief Financial Officer Jeff Cooper highlighted the company’s accelerated growth and improved profitability, citing a 23% increase in total revenue for the fiscal year and a notable improvement in cash flow from operations, which reached a margin of 25%.

Business Outlook and Guidance

Guidewire provided optimistic guidance for the first quarter of fiscal 2026 and the full year, which appears to align with or exceed analyst expectations:

• Q1 FY2026 Outlook:

  • Total revenue: $315–$321 million (compared to analyst estimate of $307.15 million)
  • Non-GAAP operating income: $47–$53 million

• Full-Year FY2026 Outlook:

  • Total revenue: $1.385–$1.405 billion (compared to analyst estimate of $1.383 billion)
  • Non-GAAP operating income: $259–$279 million
  • Operating cash flow: $350–$370 million

The company’s forecast suggests confidence in sustaining its growth trajectory, driven by continued demand for its cloud platform and expanding customer engagements.

Conclusion

Guidewire’s fourth-quarter results and forward guidance demonstrate strong execution and strategic positioning within the property and casualty insurance software market. The significant beats on revenue and earnings, coupled with a positive market reaction, reflect growing investor confidence in the company’s ability to capitalize on industry trends and deliver sustained growth.

For more detailed earnings information and analyst estimates, visit the GWRE earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.