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Guidewire Software's Earnings: A Preview
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Guidewire Software's Earnings: A Preview
Jun 2, 2025 7:34 AM

Guidewire Software ( GWRE ) is set to give its latest quarterly earnings report on Tuesday, 2025-06-03. Here's what investors need to know before the announcement.

Analysts estimate that Guidewire Software ( GWRE ) will report an earnings per share (EPS) of $0.42.

The market awaits Guidewire Software's ( GWRE ) announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

The company's EPS missed by $0.00 in the last quarter, leading to a 7.35% drop in the share price on the following day.

Here's a look at Guidewire Software's ( GWRE ) past performance and the resulting price change:

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate 0.51 0.30 0.54 0.13
EPS Actual 0.51 0.43 0.62 0.26
Price Change % -7.000000000000001% -14.000000000000002% 12.0% 18.0%

Stock Performance

Shares of Guidewire Software ( GWRE ) were trading at $215.02 as of May 30. Over the last 52-week period, shares are up 96.14%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Guidewire Software

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Guidewire Software ( GWRE ).

The consensus rating for Guidewire Software ( GWRE ) is Outperform, based on 4 analyst ratings. With an average one-year price target of $235.75, there's a potential 9.64% upside.

Comparing Ratings Among Industry Peers

The analysis below examines the analyst ratings and average 1-year price targets of Docusign, Dynatrace and PTC, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Docusign, with an average 1-year price target of $96.07, suggesting a potential 55.32% downside.

Analysts currently favor an Buy trajectory for Dynatrace, with an average 1-year price target of $59.44, suggesting a potential 72.36% downside.

Analysts currently favor an Outperform trajectory for PTC, with an average 1-year price target of $181.0, suggesting a potential 15.82% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Docusign, Dynatrace and PTC, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Guidewire Software ( GWRE ) Outperform 20.17% $179.15M -2.94%
Docusign Neutral 8.97% $616.04M 4.18%
Dynatrace Buy 16.89% $360.07M 1.52%
PTC Outperform 5.52% $530.10M 4.92%

Key Takeaway:

Guidewire Software ( GWRE ) ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is at the top for Return on Equity.

Get to Know Guidewire Software Better

Guidewire Software ( GWRE ) provides software solutions for property and casualty insurers. Flagship product InsuranceSuite is an on-premises system of record and comprises ClaimCenter, a claims management system; PolicyCenter, a policy management system including policy definitions, quotas, issuance, maintenance, and renewal; and BillingCenter, for billing management, payment plans, and agent commissions. The company also offers InsuranceNow, a cloud-based offering, as well as a variety of other add-on applications.

Breaking Down Guidewire Software's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Guidewire Software's ( GWRE ) remarkable performance in 3 months is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 20.17%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Guidewire Software's ( GWRE ) financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -12.88%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Guidewire Software's ( GWRE ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.94%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Guidewire Software's ( GWRE ) ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.45%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Guidewire Software's ( GWRE ) debt-to-equity ratio surpasses industry norms, standing at 0.7. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Guidewire Software ( GWRE ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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