Guidewire Software (GWRE) Earnings Date & Reports

Key Takeaways

• Guidewire Software beat expectations, reporting fourth quarter fiscal 2026 non-GAAP earnings of $0.99 per share versus the $0.93 consensus estimate.
• Quarterly revenue reached $411.08 million, topping the roughly $402.7 million analyst estimate and growing approximately 15% year over year.
• Annual recurring revenue (ARR) climbed 19% year over year on a constant-currency basis to $1.242 billion, above the high end of guidance.
• Fiscal 2027 guidance implies ARR growth of about 18%, a modest deceleration from fiscal 2026 that weighed on investor sentiment.
• Despite the beat, shares fell roughly 17% to 19% in after-hours trading as guidance and first-quarter expectations disappointed.

Earnings Context and Why It Matters

Guidewire Software is a leading provider of cloud-based software for the property and casualty (P&C) insurance industry, serving many of the world's largest insurers through its InsuranceSuite platform. Its fourth quarter and fiscal year 2026 results, released after market close on September 3, 2026, mark the close of a year defined by an accelerating shift to the cloud. Investors closely watch Guidewire's ARR and subscription metrics because they signal the durability and predictability of future revenue. With the company trading at a premium valuation, this report carried added weight: even a solid top-and-bottom-line beat could be overshadowed by any hint that growth momentum is slowing.

Reported Results

Guidewire reported fourth quarter non-GAAP earnings of $0.99 per share, exceeding the consensus estimate of $0.93 and up from $0.84 a year earlier. Revenue came in at $411.08 million, above the roughly $402.7 million consensus and up approximately 15% year over year.

ARR, a key forward-looking metric, reached $1.242 billion, up 19% year over year on a constant-currency basis and above the top end of the company's guidance. Fully ramped ARR grew 22% year over year, while total cloud ARR rose 35% and now represents 84% of total ARR. Subscription and support revenue, which reflects the ongoing cloud transition, surged 32% in the quarter.

For the full fiscal year 2026, total revenue grew 23% to $1.475 billion, subscription and support revenue rose 33% to $971 million, and non-GAAP operating income climbed 63% to $340 million. Operating cash flow increased 30% to $390 million.

The company guided to first quarter fiscal 2027 revenue of $372 million to $378 million, slightly below the $378.1 million consensus at the midpoint, and full-year fiscal 2027 revenue of roughly $1.71 billion to $1.73 billion. Management also guided to fiscal 2027 ARR growth of about 18%, a step down from fiscal 2026's 19% pace.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities far more efficiently than manual screening. Whether you are tracking Guidewire's peers in the insurance software space or scanning the broader technology sector, the AI Screener can help you surface relevant opportunities quickly and systematically.

Market Reaction and Investor Sentiment

Guidewire's fourth quarter results delivered a headline beat, yet the stock sold off sharply after the announcement, falling roughly 17% to 19% in after-hours trading from a close near $202.86. The reaction illustrates how high expectations had been priced into the shares heading into the report.

Investors appeared to focus less on the earnings and revenue beats and more on the forward-looking signals. First quarter fiscal 2027 revenue guidance came in modestly below consensus, and fiscal 2027 ARR guidance of roughly 18% growth pointed to a slight deceleration from fiscal 2026. Management attributed part of the slower outlook to an assumption that record-low attrition rates would normalize. Foreign exchange was also flagged as a modest headwind, trimming about $5 million from year-end ARR.

Forward Outlook and Key Factors to Monitor

Following this earnings event, investors will be watching whether Guidewire can sustain its cloud momentum while managing a gradual normalization in growth rates. The company's fiscal 2027 ARR guidance of roughly 18% growth remains healthy but marks a step down from the 19% achieved in fiscal 2026, and management noted that more than half of the net new ARR contemplated in its outlook is already under contract with defined ramp dates.

Several factors deserve attention in the coming quarters. First, the mix shift toward subscription and support revenue should continue to support gross margin expansion, but professional services margins are expected to remain near 12% as the company invests in AI capabilities and works through larger fixed-fee engagements. Second, new products such as ProNavigator and PricingCenter, which delivered standout wins including a landmark agreement with Nationwide, will be closely watched as potential growth accelerators.

Finally, investors should monitor foreign exchange trends, attrition rates, and the pace of core cloud deal signings. The company closed 26 core deals in the fourth quarter, bringing its fiscal 2026 total to 62. Sustaining that deal momentum while converting it into ramped ARR will be central to whether Guidewire can defend its premium valuation.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations