Overview

* Guidewire Q4 revenue rises 22%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q4 beats estimates, reflecting improved operational performance

* ARR surpasses $1 bln, driven by strategic cloud deals and major insurer agreement

Outlook

* Guidewire expects Q1 2026 revenue between $315 mln and $321 mln

* Guidewire projects FY 2026 revenue between $1.385 bln and $1.405 bln

* Guidewire forecasts FY 2026 operating income between $68 mln and $88 mln

* Guidewire anticipates FY 2026 operating cash flow between $350 mln and $370 mln

Result Drivers

* CLOUD DEALS - Executed 19 cloud deals in Q4, contributing to surpassing $1 bln in ARR, per CEO Mike Rosenbaum

* MAJOR INSURER AGREEMENT - Significant 10-year deal with a Tier-1 insurer highlighted as a driver of increased deal sizes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $356.60 $337.90

Revenue mln mln (14

Analysts

)

Q4 Beat $0.84 $0.63

Adjusted (14

EPS Analysts

)

Q4 EPS $0.6

Q4 Beat $72.10 $54.60

Adjusted mln mln (13

Net Analysts

Income )

Q4 Net $52 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Guidewire Software Inc ( GWRE ) is $267.50, about 18% above its September 3 closing price of $219.25

* The stock recently traded at 78 times the next 12-month earnings vs. a P/E of 84 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)